Rate rise of 3.95pc on the cards

Timaru district general rates look set to rise 3.95 per cent in the next financial year.

The first indication of the district council's proposed increase came from a report considered by the Temuka Community Board last night at which the board voted in favour of the increase.

The meeting was the first in a round of community board meetings to discuss the annual plan.

An overall general rate increase of 3.95 per cent was proposed which included a new aquatic centre rate of $26.

District-wide rates were forecast to rise 7.98 per cent while the sewer uniform charge which was expected to increase to $261 would remain at $248 due to an approved delay in construction.

The council's Long Term Community Consultation Plan (LTCCP) had originally signalled a 5.88 per cent increase, exclusive of inflation, for the 2010-11 financial year.

Ratepayers can expect a sharp hike in rates next year with a forecast 10.8 per cent rate increase. Councillor Pat Mulvey said there wasn't much option as service requirements such as sewer consents would mean big payments. "While we have been aware of costs, the target has moved," he said.

Sewer costs were forecast to go up 4.72 per cent in the 2011/12 year. Major projects planned for the 2010/11 year included construction of the Caroline Bay Aquatic Centre and a multi-storey carpark building.

The Timaru District Council will meet on March 22 to consider the preliminary draft which is expected to be available for submissions on April 17.

- © Fairfax NZ News