Wanaka residents had a lot to say about Queenstown Lakes District Council’s (QLDC) rates increase at an Annual Plan hearing yesterday (Thursday May 28), with some submitters suggesting the council follow the example of local businesses in reducing expenditure.

Council was blasted for increasing rates in the post-COVID-19 economic environment, and advised to rein in spending and rethink its approach.

In April the QLDC said it would aim for a rates increase averaging around 1.8 per cent, after earlier signalling a much higher increase averaging 6.6 per cent district-wide and as high as 8.76 for residential dwellings in Wanaka.

Some submitters argued this wasn’t good enough, and their criticism extended to the ten-year plan and spatial plan.

Retired Wanaka doctor Dennis Pezaro called for a council with “real wisdom” to solve the district’s problems. While council had deferred significant expenditure on some matters, not enough had been done, he said.

“Many ratepayers will face significant stress to pay their rates,” he said. “Council needs to rethink its approach and take the community with it.”

Former QLDC councillor Neville Harris suggested council rewrite the whole document.

A number of submitters advised the council to rein in spending in the same way local businesses have been required to do. PHOTO: Wanaka App

“Parts of the revised annual plan show some relief but many are in excess of the 2019 plan.

In my submission I've asked that all non essential work be suspended and reduced staff numbers and salaries.” 

He had plenty of suggestions for ways council could rein in its “wastage on spending”, criticising the seven figure cost of temporary council offices, among other projects. He said council should stop all non-essential infrastructure works, and make sacrifices like businesses have had to.

“Council has asked people to shop local and maybe they should practise what they preach and do away with expensive consultants and employ local expertise who understand what people want.”

The Moorings Motel and Apartments owner Peter Sutherland described all the ways he had cut back in order to help his business survive. 

He said owners’ salaries had been reduced to the same amount as the wage subsidy; he was now working full-time outside The Moorings to pay the bills; every single non-essential expense had been slashed; and he had negotiated favourable terms with essential providers, among other things.

Still, he would have a $60,000 council rates bill, which Peter said would have to be paid with borrowed money. 

“Please, council, think about the ratepayers that are going to be struggling to pay rates this year. Any increase, no matter how small, is added to what we have to pay back to the bank in the future”. 

“I believe the council can save money needed to make a zero rates increase but it needs to be bloody minded about it,” Peter said.

“Stop paying consultants $500,000 to review speed limits...review service level agreements - mow the lawns every ten days instead of every week.”

“Why should the council be immune from the same pressures every other business is facing?”

In an internal submission to the plan, council said it “fully acknowledges that the budgets supporting the draft Annual Plan which was adopted on 12 March 2020, need to be substantially reviewed in light of the deteriorating economic conditions resulting from the COVID-19 pandemic.” 

The council’s submission said its updated proposed average rates increase of 1.72 per cent , which includes a reduction in operating costs of $7.16M, will not be easily achieved.

The Annual Plan hearings will continue today with Wakatipu residents speaking to their submissions at a meeting held via Zoom.