Western Bay of Plenty kiwifruit orchards with Tauranga city and Mauao behind. Photo / Mead Norton
Western Bay of Plenty residents could be facing a 7.41 per cent rates increase from July 1.
This was higher than the 3.91 per cent increase the Western Bay of Plenty District Council signalled in its 2021-31 Long-Term Plan.
The main reason for this increase is the impact of inflation on the council’s budgets, according to senior policy analyst Rebecca Gallagher’s report to the Annual Plan and Long Term Plan Committee.
The committee met on Tuesday and adopted the Draft Annual Plan 2023/24 for consultation.
Consultation began on Thursday and runs until April 30.
The 7.41 per cent proposed average rates increase was achieved through using $1.6 million of the general rates reserve, without this it would have been a 9.07 per cent rates increase, the report stated.
In real terms, the rates increase for an urban residential property would be $2.77 a week per average median property. A property with a capital value of $485,000 will pay rates of $2834.
For a commercial or industrial property, it will be an extra $3.88 per week.
Rural properties will pay $3.24 more in rates each week.
The current capital values are based on the 2019 valuations and the revaluation is due at the end of April.
The 2023/24 rates will be based on the new valuations.
During the meeting, councillor Rodney Joyce expressed concern that the council was consulting on “rates numbers that aren’t actually what’s going to be imposed” because the new valuations were yet to be released.
Joyce asked what the impact would be if they waited two weeks to consult, so they could provide people with “correct information about the impact for them”.
General manager strategy and community Rachael Davie replied it would mean the council wouldn’t be able to adopt the Annual Plan by the statutory timeframe of June 30.
Deputy mayor John Scrimgeour added: “It’s not the amount of rates we’re collecting as a council that matters, the effect is how it impacts on individual ratepayers.
”It’s not expected to change what we collect as a council.”
Another hot topic at the meeting was user fees and charges, which would go up by around 10 per cent.
Key changes included an increase in fees and charges across building and resource consents, and removal of the libraries administration fee.
The cost of kerbside collection would also rise. The pay-as-you-throw rubbish tag would cost $4.30, up from $3.95 because of increased operating costs.
Councillor Margaret Murray-Benge said: “As I went through the fees and charges I thought to myself, ‘gosh we’re charging like wounded bulls’.”
She gave the example of the fee for a change or cancellation of consent conditions increasing from $3000 to $4000.
”That’s not a 4 per cent or a 7 per cent increase,” said Murray-Benge.
”I think we could’ve trimmed a bit more off this budget if we started to do more work on it.”
Scrimgeour, chairman of the committee, replied: “Over the last few years we’ve made a significant effort to move fees and charges more in line with the actual costs that are incurred, so that is why they are reflected like that.”
Regulatory services general manager Alison Curtis added: “If there is additional costs in terms of us delivering services those are to go back against the consent holders.
”Our focus has been very much on ensuring that there is not an increase in rates funding allocated against these services.”
In a statement after the meeting, Mayor James Denyer said the economic environment had changed since the 2021-31 Long-Term Plan was adopted.
”We haven’t made this decision lightly given today’s economic climate and pressures facing our communities.
”We know things are tough for everyone right now. But we want to be a council that makes the right decisions and is committed to taking this district forward while balancing the needs of our people.”
Projects the council would continue with under the Annual Plan included:
Denyer said: “We’re proposing to do the projects now as they won’t have an impact on the average rates increase due to how they are funded, however they will have a longer-term impact if we don’t do the mahi [work] now.”
Consultation on the draft Annual Plan and draft Schedule of Fees and Charges 2023/24 is open until April 30.
To give feedback people can visit the council’s website, libraries or service centres.
- Public Interest Journalism funded through NZ On Air