Cromwell overwhelmingly rejects council's 'One District' pitch

by Kim Bowden - Sep 23, 2024

Leave things as they are - that was the resounding response from residents and ratepayers to the council's pitch to shake up the way rates are collected and things are paid for across Central Otago.

Three-quarters of the submissions received on the council's 'One District: Central Otago' consultation supported sticking with the status quo.

A report to the mayor and councillors ahead of a decision this week on the proposal says the results showed respondents "overwhelmingly" indicated a preference for no change.

A strong turn out of submitters from Cromwell influenced the outcome.

Of the 336 submissions received, 231 came from the ward, and 207 of those favoured the third of three options presented by the council - to continue to fund property, parks, cemeteries, pools and museums using ward rates.

But the report, written by business support manager for the council Saskia Righarts, warns those around the council's decision making table following through with the community's favoured option "does not recognise the future risk to the community as a whole in not having a district-wide funding approach".

Moves towards 'districtisation' started at the end of last year, with an initial proposal to rein in the delegations to the district's four community boards.

The "rationale" behind the moves, Ms Righarts says in her report, centres on bringing "strategic spending decisions" to a "council level".

"Current predictions will see council reach its funding cap (debt to revenue ratio of 175 percent) in the 2025/26 financial year," she says.

"Officers are currently investigating options to achieve a credit rating which will enable to the revenue to debt ratio to increase to 280 percent."

However it is this sort of context that has left Cromwellians anxious.

The ward sits on considerable land assets, potential revenue from which is for now spent at a community board level.

"Cromwell's assets have been well managed and respected by current and previous community boards," one submitter says.

"The value of these assets should remain within the ward, as should any realisation of the assets. Districtisation of Cromwell's assets would be punishment for the good work of our local leaders.”

Requests for reassurance on how any revenue from the sale of any land assets may be spent moving forward made during a public meeting in Cromwell in recent weeks as part of the 'One District' consultation went largely unanswered.

At the meeting the mayor did make a case for Cromwell ward ratepayers being potentially better off under the two alternative funding scenarios presented by the council.

There are looming costs coming from the town's under construction new hall on Melmore Terrace, and rates-bill bottom-lines will be healthier for properties in the ward if these costs are spread across the whole district.

A full council meeting will kick off at council chambers in Alexandra at 6pm on Tuesday night, with members of the public who asked to speak to their submissions on the proposal being heard.

Following the submissions, the meeting will adjourn until 10.30am on Wednesday, when a decision will be made by the mayor and councillors either way.

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