Environment Southland (ES) announced yesterday (19 Jun) that it was slashing this year's proposed rates increase, from an average 23% increase to 12.6%, and halving its flood protection plans - after a record 330 submissions from ratepayers voiced concern in the face tough economic times.

ES councillors also agreed to transition towards a new rating model over the next two years in response to ratepayer feedback.

Yesterday's announcement followed the conclusion to 3-days of meetings where councillors confirmed their draft budgets, 2024-2034 Long-term Plan, 2024-2054 Infrastructure Strategy, Revenue and Financing Policy and Rating Review, and the Fees and Charges Schedule.

The 2024-2025 budget will now see ES's proposed $2.3m investment in flood protection reduced to $1.17m, by using reserves rather than rates, as well as changing the timing of some of the work.

ES chairman Nicol Horrell said planning and delivering long-term flood resilience was a core part of the regional council’s work to help keep communities as safe as possible ahead of time, but how to pay for that was the question.

“The reserves are there for a rainy day, and the community is telling us it’s raining,” he said.

There was community support for ongoing flood protection in the region, but there were also suggestions around how much and how fast work should happen, Horrell said.

“Affordability issues were front of mind for councillors during deliberations and we have found savings and efficiencies across the organisation, while ensuring the Council’s statutory obligations continue to be met.”

The rates adjustment, from an average 23% increase to 12.6%, is expected to save a $450,000 property $34 per annum or 67c a week.

The plan will be formally adopted by ES councillors next month.

Key decisions made by Environment Southland include:

• The funding of the flood protection operating expenditure with $2.34m of lease area reserves to reduce the impact on rates over four years, as consulted on with Catchment Liaison Committees.
• There will be a two-year transition to a Capital Value rating system and there will be further consultation during 2024-2025 on whether there is a local rate or regional rate to fund river management programmes.
• The use of $1.38m over four years from biosecurity and land sustainability surpluses to fund their ongoing work programmes and offset rates.
• The flood protection capital works programme from 2027-2028 onwards is indicative, and will only progress subject to detailed planning being undertaken, government funding being available, and further consultation with the community.

The Southland District Council is also conducting public consultations on their Long-term Plan this month (Jun).