Push for rates review as Timaru council adopts annual plan

Tuesday, 1 July 2025

As councillors voted to adopt the district’s 2025-26 Annual Plan, the Timaru District Council’s chief executive said he had been assured it could deliver on its ambitious capital works programme.

The plan, which included minor amendments to fees and charges since the draft was discussed buy councillors last week, includes $80.4 million of capital expenditure and $146.5m in operating expenditure.

The plan has a total operating revenue of $145.3m, which is $800,000 less than outlined in the draft document.

It was adopted at Monday’s council meeting, led by deputy mayor Scott Shannon in mayor Nigel Bowen’s absence, and meant the council would increase its overall rates take by 9% as agreed in late May.

The proposed increase in rates had been forecast at 12% in year two of the Long Term Plan for 2024-34.

During Monday’s meeting, councillors raised questions about the overall rates increase, how it would be explained to ratepayers and the wide gap between commercial and residential rates, with some saying it was time for a rates review.

Councillor Stu Piddington said they had been talking about a rates review for five or six years, and it was time to commit to getting it done “with some sort of urgency”.

Councillor Allan Booth, who raised a concern over the amount being paid by commercial property owners compared with other districts, agreed there should be a rates review.

“Our poor old CBD have been paying four times the rate, and quite frankly what have they been getting? Literally nothing, other than getting their rubbish bins … emptied once a week.

“The capital improvements have not been spent there. They’ve been obviously used elsewhere and that needs to change.”

Shannon thanked Booth and said his comments “reiterated” just how important the review was to councillors.

Booth also asked about the council’s ambitious plan to deliver 100% of the capital expenditure programme budgeted.

“I just wonder whether we should not be more realistic … about where we’re probably going to land, which could be anywhere between 40 and 60%, depending on how projects go.”

Chief executive Nigel Trainor said he had been with Booth on that and he had been “pushing the team to say, ‘I don’t think this is deliverable.’ They’ve reviewed it about three times.”

Trainor said a big chunk of the programme involved three major projects –Aorangi Stadium, the Theatre Royal and the Claremont treatment plant upgrades.

The remainder was accounted for by the council’s usual delivery, so he had “a little bit of comfort” the council would be close to it.

“So long as those projects are on time, they’re on track and we get on with it.”

Councillor Owen Jackson asked what would happen if council did not deliver on its capital programme.

Trainor said it would mean the council borrowed less and would pay less in interest, and when assets were capitalised, it would not have as much depreciation “hitting our books”.

“Given we are in deficit … it will help to reduce that.”

He said that effectively, the projects would probably be carried over to the next year.

Booth also questioned whether the council was charging residents to use a credit card to pay rates, and was told it was not.

The council’s chief financial officer, Andrea Rankin, said the council had been adding a surcharge, but that had been removed during Covid and had not been added again since.

“The question is, would you like the credit card surcharge to be added back?”

Booth replied that he would, saying: “That is going to be showing up in our bank charges, which will be quite significant.”

Booth said it would also explain why so many people were “so keen to use their credit cards and get their Airpoints”.

Piddington asked whether the council had any idea what the cost was. He was told the information was not available to hand but could be discussed at the next meeting.