Gore draft tips rate rise of 5.4pc

The Gore District Council's draft estimates for the next financial year would deliver a 5.41 per cent rate increase and net $12.4million, GST inclusive, from ratepayers.

However, Gore District Mayor Tracy Hicks said yesterday he would be surprised if the rate increase stayed at that level. He predicted it could end up below 5 per cent once councillors get their hands on the estimates.

The draft gets its first public airing next week and additional costs have pushed the rate increase up 1.22 per cent from the 4.19 per cent projected in the long-term council community plan.

The biggest extra expense was the MLT Event Centre where the council has set aside $85,000 for operational costs. The centre's draft budget shows an additional $85,000 income from contributions, which was money pledged by the Mataura Licensing Trust and Community Trust of Southland, as well as $40,950 from fees and $20,000 from advertising. Among expenses was $60,000 for depreciation.

The event centre has always been a controversial topic and, given comments from councillors since the budgets were first circulated, its funding appears likely to generate some robust discussion at the extraordinary meeting.

Corporate services general manager Russell Duthie said yesterday the overall increase would vary between the rural and urban sectors.

A reduction in the rural roading budget would give rural ratepayers a slightly reduced percentage increase while urban ratepayers should expect their rates increase above the overall average, he said.

The draft estimates would be discussed at an extraordinary council meeting on Tuesday.

- © Fairfax NZ News

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