Rising fuel costs are expected to hit Ashburton ratepayers, pushing the rate rise above the signalled 8.71 per cent.
The council are yet to share those details but it was laid bare at the activity briefing meeting on Wednesday.
The finance report noted “further savings have been confirmed through council workshops in response to cost pressures associated with the Iran war”.
A revised Annual Plan is being prepared to be presented to council for sign-off on June 30.
Councillor Deb Gilkison asked if the result of the “savings” would be a reduction in service.
Financial performance manager Gordon Cruickshank said the council has worked to make saving in other areas to try and reduce the overall cost increases.
“Unfortunately, it has meant the rates increase is slightly increased.”
Gilkison followed up, wondering “why does it take a war for the council to analyse their costs in this way?”
Cruickshank said cost pressures had been a focus throughout the budget process.
“We just wanted to make sure if we were increasing costs due to the cost associated with the Iran War, we could look at the community and say we have reviewed everything again.”
The council’s budget process began in January at an initial starting point of 10.4 per cent.
The councillors settled on a draft with an 8.71 per cent rates increase in mid-March, opting not to consult on the plans.
The increase is split between 3.75 per cent for three waters services and 4.96 per cent for everything else.
Following that decision, the conflict in the Middle East escalated, seeing fuel prices surge over $3. That forced the council to reconsider its annual plan to factor in the impact of fuel cost increases.
Those conversations have taken place, out of public view.
The only change that has been released is the reduced costs of the new road for the second bridge project.
Council is budgeting for the cost of the connecting road to be $19.7m and has $16m tagged for the project in its Annual Plan 2026-27.
The lower loan amount will reduce the amount of debt the council needs to cover.
But it appears that saving has been offset by the increases to counter fuel costs.
The council has been asked for the details.
Meanwhile, other councils are grappling with similar issues. Rising fuel prices are hitting Waimakariri District Council as it finalises its annual plan, while Christchurch City Council has made savings as its fuel bill rises.
