$2.4 billion council spend green lit
Queenstown's council has pushed the button on a $2.4 BILLION spending plan, including an immediate average rates increase of 15.8%.
Councillors yesterday approved the Long Term Plan for 2024-34, which includes $979m on infrastructure projects needed to meet the expected growth of the district.
It means when 2024 / 25 rates bills hit the letter boxes and inboxes of residents across the district later this month, they will find they're paying an average of 15.8% more - one of the highest hikes in Queenstown's history.
Mayor Glyn Lewers says councillors and staff had to make some tough decisions, with QLDC effectively put in a spending "straightjacket" by leaky buildings pay outs, three waters and other factors.
"Like many businesses and individuals, Councils across the country are finding themselves in a very challenging financial position. Rising costs across the board, combined with the government’s continued expectation on local communities to fund their own infrastructure creates a significant financial burden on ratepayers," he says.
"The governments new Local Water Done Well plans mean we are obliged to make substantive investment into the water sector to achieve compliance, and this plan places QLDC in a great position to achieve this with its planned and funded investment programme."
Almost 1000 locals had their say on the draft plan, with 97 choosing to speak at the submissions hearing in August.
The approved plan includes a targeted rate on Queenstown town centre properties to recover the costs of the streetscape project. But the bill for the chaotic and overbudget Queenstown bypass project will be picked up by all ratepayers across the Whakatipu Basin, rather than just the CBD.
The massive spends on infrastructure means many other projects have been put on the backburner, including many requests from the community.
“Unfortunately, it is never possible for Council to support all the funding requests from the community, particularly those with significant price tags and long-term operational requirements in the current financial climate," Lewers says.
"These requests speak to a community need and we will continue to work alongside the many groups who have engaged with us through this process – the time and energy they continuously put into improving our district is second to none and we will do what we can to continue to support their efforts."
Outgoing council finance boss Stewart Burns, retiring after 30-plus years, said this was “with no doubt the most difficult" long term plan he'd worked on, especially balancing the infrastructure spend with rates.
Mayor Lewers noted that the latter half of the LTP created more opportunity for Council to invest into its community infrastructure in line with growing demand and community need.
All submitters will receive a response letter in the coming weeks.
The Long Term Plan 2024-2034 can be viewed on the Council website here.
