The Mike Hosking Breakfast
Mel Tavendale: Waitaki Mayor on the district's ratepayers facing a 45% increase
12 May 2026
Transcript generated automatically by AI and may contain errors.
Chapter 1: What is the main topic discussed in this episode?
Fairly tense old discussion going on right now in Waitaki. They floated the idea of a 45% rate increase. They got $14 million operating deficit. Mel Tavendale is the Waitaki mayor and he's with us. Mel, morning to you.
Good morning. How are you?
I'm very well. So you're looking at 19, 27 and 45. Is 45 the stalking horse? So you can freak everyone out and then go 27? No. Where'd you get 45? I mean, surely you're sitting around a table somewhere and someone went, what about 45? And somebody else went, are you mental?
Chapter 2: What options are being considered for the rates increase?
Or words to that. I mean, surely you had that discussion.
No, it's really basing it on figures is what we've started from. Because what we've done with the 1927-45 is step the community through what the options actually are and the reason where the risks lie. So the 45 is the full monty. Basically, it's balancing our books. So...
Essentially, last long-term plan, we did approve an operating deficit of $14 million, which in this environment is getting really hard to shoulder, and I think we're getting really close to our debt cap as well. There's a lot at play here. The $45 million would be, essentially, we also unfunded our entire water program, so the depreciation on it, sorry.
So the 45% is re-funding the depreciation on the water program from last year and next year moving forward.
So how are you going to handle this? When they come back and go, we're not doing 45%, are you actually going to take a vote on this or are you just going to get a bit of feedback? What are you going to do?
We're looking for feedback.
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Chapter 3: How does the $14 million deficit affect the council's decisions?
Essentially, obviously, unfunding our water depreciation is an option. It does kick the can down the road. It doesn't fix the problem. Personally, where I'm sitting is in a 19% conversation. What that's looking at is an increase in the 2% that we're seeing already through our budget.
And it's also looking at revisiting the depreciation, sorry, the deficit from last year in the operating space so that we're not basically just borrowing money to cover the cost of our groceries, which is not a good place to be in.
Where's your merging thinking at? Are you merging with anyone?
We've got lots of conversations going on. So, you know, Waitaki is already split across two different regions in Canterbury and Otago.
Yeah, it's a big area, right?
Yeah, we've got a long, big land area, which that's where the water conversation has really hit us hard.
That's your problem, though, isn't it? I mean, at $14 million, it's not much money if you compare it to an Aucklander or a Wellington, but your rating base is a problem, isn't it?
Yeah.
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Chapter 4: What challenges does the Waitaki district face with its ratepayers?
Yeah, no, we're sitting on $12,000 rate payers, so $14 million deficit for one year is massive. And when we're talking... Next year, we've got a $37 million capital works programme just in water. So, you know, this is where the rubber's hit the road. And we've talked about water for a long time.
Chapter 5: What feedback is the council seeking from the community?
It's not until it actually does hit the budgets that people really comprehend that, you know, there's a lot for small councils to handle.
All I can do is wish you well, Mel. Mel Tappendale, who's the mayor of Waitaki. For more from the Mike Hosking Breakfast, listen live to News Talk ZB from 6 a.m. weekdays or follow the podcast on iHeartRadio.