Dog registration costs will go up, the council will sell half of its carbon credits, and trade waste fees, too, will go up, all to keep the average rates rise at 17.4 per cent. Some will pay more, some will pay less.
Without the proposed cuts to services that will save the council $1 million each year, the average rates increase would amount to more than 23 per cent. The council has almost reached its debt ceiling and does not want to borrow any more money, and it has been borrowing for services such as kerbside recycling for years.
Borrowing has also subsidised other services over the decades. So Horowhenua has had a good look at all its services and is making suggestions as to what it thinks the district could possibly do without.
The new plan proposed will balance the budget by 2027, but a lot of fees, such as those for dog registration, will have to go up too, so all services will need to pay their own way from then.
If the public wants the rates lower still, a lot more will have to go, such as the fund used in case of emergencies such as a tornado or flooding. Funding for economic development and information services will be reduced, and there will be less money for roading.
The fate of kerbside recycling
Services such as kerbside recycling can still be funded by debt, but this will mean the council’s debt will go up. Just a 1 per cent reduction in rates will save $524,000.
There are also plans to change funding for waste collection and recycling. The proposal is to fund this with a targeted rate, which means those who use it pay for it, but there will be an amount, budgeted at $99.40, to meet ongoing obligations regarding the now-closed Levin landfill. Every property will have to pay this. Kerbside recycling will cost ratepayers who have that service $144.61, and solid waste is budgeted at $96.32.
Other options here include stopping kerbside recycling altogether, though the Government has launched a plan to increase this to include items such as garden and kitchen waste in the next few years, so other ways will need to be found to facilitate this in the future.
Rates increases will be less in the years to come: 11.5 per cent next year and 9.3 the year after that. From 2033, the amount being borrowed will progressively go down.
Targeted rate for Foxton
Among the raft of changes Horowhenua District Council is proposing as part of its long-term plan is the suggestion to make Kerekere ward ratepayers pay for the board’s cost, budgeted at $188,000 a year. At the moment it is funded out of the general rate, so everyone pays a little bit towards this as part of the representation and community leadership targeted rate.
If implemented, it means Foxton and Foxton Beach residents will pay an extra 1.5 per cent annually to fund this. Other property owners will see a decrease of 0-1 per cent depending on the suburb they live in.
The general rate also funds economic development. This covers business support and advice for businesses, iwi and Māori economic development, inward investment, trading opportunities, communications and provision of economic data. Most of these services are provided by the Horowhenua Company, which has the contract for these services.
The proposed targeted rate for this is based on the capital value of business-related properties. This will cover 75 per cent of the costs of this service, with the general rate funding the remaining 25 per cent.
Rates remission options
The rates remission policy is also under review, offering either a reduction or a postponement to struggling ratepayers. However, Horowhenua has only $630,000 available for this, so if the number of applicants goes up, each will get less. Councillors are against boosting that budget because it would have increased rates by another $330,000, or 0.6 per cent.
Caps for rates remission are proposed for several property types, such as land used for farming, subdivisions in common ownership, bare land and properties under development.
Infrastructure plans are also affected by the restraints, such as debt levels and trying to keep rates as low as possible. A proposed 20-year capital programme is earmarked as challenging because capital needs to stay below 27 per cent for the first seven years. A reduction in the programme for other infrastructure will mean any renewal to three waters pipelines will be focusing on water and wastewater treatment.
Infrastructure is paid for mostly via rates, but development contributions also a factor, allowing the council to recoup any costs for new infrastructure needed from developers. This will enable it to assist any works done to allow for expected growth.
For a complete overview of the entire proposal, see the consultation document or the Long-term Plan itself.
Submissions close on April 15.
Information on when and where the consultation document will be made public has not yet been released. It should become available on March 15 on letskorero.horowhenua.govt.nz/LTP, which is still advertising the previous LTP 2021-2041.
Hard copies should become available from March 15 at the Levin, Shannon and Foxton libraries.
Contact your local councillor if you want to know more about these proposals.
