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Home / Manawatu Guardian

Palmerston North city councillor Renee Dingwall: Rates reduction shows power of residents' voices

By Renee Dingwall
Manawatu Guardian·
31 May, 2022 06:28 PM3 mins to read

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Palmerston North city councillor Renee Dingwall says when making budget cuts elected members need to make sure there are no unintended consequences. Photo / Palmerston North City Council

Palmerston North city councillor Renee Dingwall says when making budget cuts elected members need to make sure there are no unintended consequences. Photo / Palmerston North City Council

OPINION:

In the face of a volatile property market, our rating system is strained and failing us. The huge raft of submissions received on the draft annual budget made it very clear: the rating system isn't working.

We hear you, loud and clear. There are limited levers, and no quick fixes.

The council heard from submitters how the increased rates bills would impact residents. I sympathise with their concerns. Every house on my street in Takaro faced a 24 per cent increase in rates – the equivalent to an entire week's paycheck for some low-income residents.

Although we didn't ask the specific question, 43 submissions told the council to change the rating base from land value to capital value. That conversation is happening, and we plan to engage with the community soon on the next steps.

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Last week, we spent two full days debating how the rates burden could be more fairly shared, as well as what needs to stay in the budget and what could go.

We had two key votes on how we share the rates burden throughout the city. We made progress, cutting the flat-tax component of the rates by a further $100 a property, and reducing the amount of rates collected from the residential sector.

We also cut the budget back. This is not as easy as it sounds. Everything in council's budget is there because we're legally required to do it, or because we've been asked to fund it. When we look at cuts, we need to make sure there are no unintended consequences.

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One big cut was reducing the remuneration budget by $2 million – a close vote at 8-7 with one abstaining. Other projects are on hold for a year, like city-centre street improvements and new lighting for Fitzherbert Bridge.

We also added a few things in: more footpath repairs, a Manawatū Awa water safety audit, a full audit of accessibility for council infrastructure, more shade trees in our barest parks and reserves, the City Ambassadors service, and starting to address road safety in Vogel St, and in Botanical Rd at College St.

In the end, we cut the rates rise by almost a third, reduced the rates impact on the residential sector, and spread the residential rates more evenly. All in all giving some relief to everyone, and especially those living in lower-value properties.

We had 340 submissions, which shows the power of the community's voice. All in all, councillors tried hard to listen to the concerns, and put the community first. This highlights the importance of continuous engagement with our community, and the difference a submission or petition can make.

Fa'afetai (thank you) for having your say, and manuia le vaiaso o le gagana Samoa (happy Samoan Language Week).

• Renee Dingwall is a Palmerston North city councillor

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