The 2020/21 proposed average increase in rates is now anticipated to be around 1.59 per cent across the whole district.

Councillors will be asked to adopt a revised 2020-2021 Annual Plan with a significantly reduced average rates increase down from an original average of 6.76 per cent to just 1.59 per cent at the full Queenstown Lakes District Council (QLDC) meeting this Thursday (June 25).

For Wanaka the average residential rates’ increase is now proposed to be 3.80 per cent, down from the original forecasted average of 8.76 per cent. Hawea’s average residential rate is now proposed at 3.14 per cent (down from 8.43) and Luggate’s at 1.69 per cent (down from 4.87). 

Queenstown average residential rate increases are now proposed to be 2.86 per cent (down from 8.03).

QLDC general manager finance Stewart Burns confirmed that having originally signalled a 6.76 per cent average increase, council had tasked itself with a revised target of 1.8 per cent in line with inflation.

“The council recognised it needed to think differently in order to ease the effect of any rates increase on the local community, many of which have suffered financially as a result of COVID-19. 

Residential rates are now proposed to increase by between $34 and $125 per annum for next year.

“A zero average increase is not possible without significantly reducing levels of service and the council still needs to maintain and improve the three waters infrastructure and roading networks, collect and process waste and recycling, maintain community venues, parks and reserves, respond to noise complaints and more,” Stewart said.

At a proposed average of 1.59 per cent (allowing for 3.5 per cent growth), residential rates are now proposed to increase by between $34 and $125 per annum for next year. 

Most commercial/business rates show a decrease compared to last year which may offer a much-needed boost to local businesses in this tough economic climate, the council said.

“Through submissions, some people have called for council to look at its own staffing, and a significant contribution to the reduction was decreases in staff costs of $4.7M due to a removal of 20 proposed or vacant full-time equivalent positions and the introduction of a salary freeze for the 2020-2021 year,” Stewart said.

“Additionally, a reduction of $1.7M (34.5 per cent) has been made in contractor costs as our model uses contractors to meet peak demands when needed… The revised staffing structure reflects the expected downturn in demand, especially within consenting activities.”

The revised Annual Plan also took into account significant reductions in revenue and income as a result of COVID-19 restrictions, much of which has been related to visitor activity, including the loss of the Queenstown Airport Corporation dividend (forecast at $5.8M) which will not be paid this year.

Despite the reduction in revenue, a $184M capital investment programme remains within the 2020-2021 programme to provide a vital stimulus to the local economy, Stewart said. 

The QLDC is also awaiting news on its applications to central government’s Capital Infrastructure Partner ‘Shovel Ready’ programme for funding key infrastructure projects that could bring much-needed jobs and investment as part of the recovery efforts.

PHOTOS: Wanaka App