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Home / Manawatu Guardian

Palmerston North Mayor Grant Smith: Elected members heard concerns and rolled up their sleeves

By Grant Smith
Manawatu Guardian·
31 May, 2022 03:59 AM4 mins to read

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The theme for this year's Samoa Language Week is continue the voyage with competent wayfinders of the ocean. Photo / NZME

The theme for this year's Samoa Language Week is continue the voyage with competent wayfinders of the ocean. Photo / NZME

OPINION:

Kia ora tātou. And talofa to our Samoan community who have plenty of cause this week for celebration.

Not only is it Samoan Language Week, it's also the 60th anniversary of Samoan independence from New Zealand.

In council, things have been more serious as we strove to limit a proposed 8.3 per cent rate increase to 5.8 per cent.

Keeping a lid on city rates for the 2022-23 financial year was always going to be a struggle.

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It's been evident to all that we as a community are facing unprecedented, across-the-board cost pressures, and it was inevitable those pressures were going to be reflected in city rates.

However, after council signalled an 8.3 per cent rise in rates, the response from residents came loud and clear in the form of 340 written submissions and hundreds of social media postings.

It's the highest number of submissions for at least a decade, making this one of the toughest annual plans council has faced.

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It's fair to say the overwhelming majority of submissions were against any rise of that magnitude, with displeasure directed at the land value-based rating system council uses - as opposed to a capital value rating system.

Land-value rates are based on the full market potential of an undeveloped property, and the rapid rise in property values has skewed rates unevenly, disadvantaging those with larger-sized properties.

A capital-value system is based on just the value of improvements to a property.

While it is too late this time to do anything about the rating system, council not only listened to residents' annual budget concerns, we rolled up our sleeves and did something about them.

After sitting for eight sessions of public submission hearings, councillors spent 15 intense hours over two days last week wrestling with the figures, making cuts to the budget, and looking for ways of reframing city property revaluations.

Among the measures we've employed are reducing the uniform annual general charge (UAGC) from $300 to $200, and increasing the differential applied to non-residential properties from 180 per cent to 200 per cent.

We can also direct some of our end-of-year surplus from uncompleted work into next year's operational spending, while deferring other projects to the 2023-24 year, including the next stage of Streets For People around Te Marae o Hine - The Square.

Despite council staff shortages, we're also trimming remuneration packages for new hires - hopefully not at the expense of our day-to-day operations.

It has been a difficult process but being on council is sometimes about making hard and difficult calls.

When faced with this current cost crisis and its consequences, the team of elected members showed its mettle by agreeing on a range of practical solutions – wresting the proposed rates rise down to 5.8 per cent.

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What we've come up with won't please everybody, but my thanks to all those who voiced their concerns, made us aware of their dissatisfaction, and engaged with the democratic process.

Talking about the democratic process, council has just appointed members to three citizen advisory groups. There's a new chairman for the Disability Reference Group, Nick Dow, and reference groups for seniors and Pasifika have now been established.

These groups will provide council with feedback on issues of concern and I'm rapt with the commitment and calibre of those who put themselves forward to serve their communities.

And be aware that nominations for the local body elections in October open next month.

After the Covid restrictions the retail, hospo, accommodation and entertainment sectors are slowly coming back to life in the city.

Saturday is the night for the local Samoan Independence Ball.

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Happy long weekend everyone, stay safe, stay well and remember to buy local.

Tōfa soifua.

• Grant Smith is the mayor of Palmerston North.

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