A "controversial" proposal to raise Wairoa rates is an unwelcome Christmas present to ratepayers from their council's "financial boffins", a resident has warned.
The Wairoa District Council is proposing "significant" changes to its revenue and financing policy, which determines where the money needed to deliver council services will come from.
It is undertaking consultation on the proposal, which it intends to adopt on January 30 for the 2018/2019 year.
However, the proposal has riled some residents who fear the impact it could have on rates.
Mahia's Bill Shortt said residents had received a letter informing them they could be in line for rate increases of up to 50 per cent in the 2018/2019 year, however there was no reason "whatsoever why such a large increase should be set in the Mahia area".
He had a slew of complaints about a lack of council investment in infrastructure in the area, including that the new sewage scheme was being paid for by users, that there was no green waste collection, and no water system, instead it was stored from rainfall collection.
For Mahia Beach homeowners the letter was "an unwelcome [Christmas] present from the unthoughtful Wairoa council financial boffins".
As part of the consultation process a meeting will be held in Mahia in mid-January. Here, Mr Shortt said, there was "no doubt council's new chief financial officer Gary Borg will face some very tough questioning".
The council would not confirm the 50 per cent increase.
In a statement, Wairoa Mayor Craig Little said the policy change was a proposal only, which would look at how rates were collected.
"The reason we're doing this is because we have one of the most antiquated and complicated rating systems in New Zealand," he said.
"We are taking your concerns very seriously. I know people have shown their feelings about the current rating system we use. It is overly-complicated, but through this proposal we are trying to find a simpler and fairer rating system."
He said the overall rate take would be in line with the long-term plan. Previous councils had looked at the rating model, but it had been too hard to understand.
"This was never going to be an easy process, hence why it hasn't been accomplished before. I am proud that this council is being courageous enough to bring this controversial proposal to the community for you to consider."
He encouraged ratepayers to read the Revenue and Financing Policy Statement of Proposal.
In its statement of proposal, the council has created "appropriate" revenue contribution thresholds for each funding source. Under this, the proportionate allocation of revenue to meet operating costs would include 66 per cent from rates.
The statement also outlines a "simplified and streamlined" basis for calculating rates, which would be move away from the current matrix used to calculate rates which was "very complex".
"Any transition from such a complex matrix will inevitably lead to adjustments that affect the entire district, and some of these will be substantial.
"Council must consider the needs of the community now and in the future, and therefore determine a rating policy that is sustainable and appropriate."
Consultation on the proposed policy began on December 6, and will end on January 22 followed by a public hearing.
- The WDC proposal can be viewed at the Wairoa District Council office in Queen St, the Wairoa iSite or the Wairoa Public Library, or on wairoadc.govt.nz.