Ashburton Councillors Comb The Budget For Savings

Thursday, 6 February 2025, 9:27 pm
Article: Jonathan Leask - Local Democracy Reporter

Options are being looked at to further reduce any rate increase in Mid Canterbury in the next financial year.

The Ashburton District Council had forecast a 10.1% average rate increase in 2025/26, on the back of a 11.8% in 2024/25.

The budget workshop started with a revised figure of an average rate rise of 9.8% but that is likely to change by the next round of budget workshops on February 26.

The councillors spent two and a half days scrutinising the 200-page 2025/26 budget line by line, looking for potential savings and cutbacks.

Some key talking points included funding depreciation, and the rising costs of insurance (estimated at an increase of $700,000) and electricity ($300,000).

A reduction of around $760,000 is forecast for the council’s interest costs after the interest rates drop.

A key driver to seeing the rate increase figure reduce further is the council potentially dipping into its reserves – specifically the reserve contributions which has around $8.1m.

There is also the property reserve that has over $31m.

Councillors have directed staff to look into how the reserves can be utilised and there could be changes to how those reserve funds can be used in future – but that work will not be completed in time for this budget.

The unsubsidised $2.4m of road funding, the result of rated funds unmatched by NZTA, remains in the budget as councillors were keen to respond to community calls to improve the roading network.

Mayor Neil Brown said the council had lost $2.5m and keeping the rated money in the budget was about keeping on top of the road network maintenance.

What it is used for will be decided after the budget is set.

The budgets also contain $2.6m for the second bridge project, part of the $7.5m the council included in the long-term plan for the project.

Now the government is fully funding the bridge, and the council will pay for the connecting roads, it is likely that money be used to get that project underway.

The draft budget forecast around $57.6 million being collected in rates, with capital expenditure including about $16m on drinking water, wastewater and stormwater projects and about $19m on roading and footpaths.

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