Mayor Gary Kircher has warned that rates could increase by approximately 40 percent over the next two years. this follows the council’s approval on Tuesday of a water services delivery plan, which is now awaiting approval from the Department of Internal Affairs.

Councillors previously pulled the plug on a collaborative arrangement with other councils known as the Southern water Done Well model, choosing rather to implement an in-house scheme.

In a speech shared in the council chamber and on Facebook, Kircher voiced his concerns that the approved plan would lead to substantial rate increases for the community, especially when more affordable alternatives were available.

He had opposed the decision to withdraw from the Southern Water Done Well model, believing it “would have created efficiencies.”

Kircher expressed his worry about the potential consequences for residents, stating he did not want to consign people to possibly losing their homes because thay could not pay their rates, “or all of the other challenges they’re going to have around affordability”.

“We had the numbers in front of us around what this cost saving was going to be for each house. But for some people, that was like those savings were not worth it,” Kircher said.

Ratepayers Group Supports independent Plan

“As far as I’m concerned, the money that we pay on rates should go towards actually doing things, not paying for management.”

Despite the mayor’s concerns, Waitaki Ratepayers and Residents Association chair Ray Henderson told RNZ that he believes meaningful rate increases are unavoidable.

While a joint model might have offered some efficiencies,he argued that it would have also introduced unneeded administrative expenses.

“As soon as you start building CCOs [council-controlled organisations] and then even worse than that, combined council CCOs, there’s admin costs, there’s overheads. As far as I’m concerned, the money that we pay on rates should go towards actually doing things, not paying for administration,” Henderson stated.

“There’ll be meetings… the associated costs of travel, accommodation… so much money will be wasted.”

Henderson also noted that the council doesn’t need to be formally part of Southern Water Done Well to collaborate with other councils by sharing resources, water specialists, and machinery.

“That can still happen. So the efficiency option is still there,” he said.

Henderson ultimately placed the blame for the anticipated rate hikes on the government, asserting that it had