Property owners in Ashburton could be facing a slightly lower rates rise, but it depends on the budget for keeping the roads maintained in the district.
The council budget workshops in February started with a 9.8% average rates rise for the 2025/26 year, lower than the long-term plan forecast of 10.1%.
Homeowners were hit with an 11.8% average jump last year.
Another budget workshop held this week revealed several potential savings for the council but it will depend on the roading budget, which will go before a council workshop on Thursday.
Council chief executive Hamish Riach said there was further work to be done on the roading budget, the council’s biggest cost sector, and urged caution on any estimated rates figures “until we have that clarity”.
“We need to have it right,” he said.
Without the full picture of the roading budget any estimate would be misleading, he said.
The council is now having to do more work on its roading budget after the NZ Transport Agency’s funding did not match up with the council’s long-term plan budgets.
Deferring an upgrade at Robilliard Park, using reserve contributions, and property reserves, rather than raising loans for the capital projects, could save the council around $400,000.
The council trimmed $700,000 off the cost of constructing a carpark at the old Polytech site, reducing the cost from $1.9m to $1.2m (including demolition of the old buildings).
However, Mayor Neil Brown was still sceptical of that figure for “just a gravel carpark” and wanted the plans reviewed by the council.
A request for $53,000 from the Tinwald Memorial Hall for floor sanding will be included in the draft, funded by the urban amenity rate.
There could also be further savings with the council looking into how it funds renewals and depreciation, which already identified an around 1.2% saving.
After the roading budget is revisited on Thursday, a third and final workshop is planned for March 20.
The final draft annual plan will be presented to the council for adoption at the meeting on April 2, when a decision on whether it will go out for public consultation will be made.
By Jonathan Leask
