Richard and Evelyn Johnson faced a rates bill of between $3385 and $3511 a year for their Waiotira property but they are pleased it will be less. Photo / Denise Piper
Richard and Evelyn Johnson faced a rates bill of between $3385 and $3511 a year for their Waiotira property but they are pleased it will be less. Photo / Denise Piper
The voice of Whangārei ratepayers struggling to pay their rates has been heeded by the Whangārei District Council, which has decided not to increase rates as much as first proposed.
The council had planned a 10.7% increase in general rates, along with a new $172 stormwater rate, plus increases towater and wastewater costs, in its draft 2025-26 annual plan.
But it received 792 formal submissions, many of whom were pensioners struggling to afford their ever-increasing rates.
One submission was from pensioners Evelyn and Richard Johnson, who were facing rates of $3385 to $3511 a year - an increase of 29% to 35% - on their rural Waiotira property.
But Richard Johnson said many of the submitters had such crippling rates bills, their stories almost brought tears to his eyes.
At an emergency council meeting last Wednesday, the majority of councillors voted to cut the council’s operating budget so rates would increase by 9.7%, rather than the 10.7%.
They also voted to charge a $79 stormwater rate, with the shortfall made up from debt.
The decision was a last-ditch effort to come up with a figure agreeable to the majority of councillors, after two previous annual plan meetings failed to reach a decision and were described by councillor Scott McKenzie as “utter chaos”.
If a decision was not made in time for staff to prepare documents for formal adoption on June 26, the council risked a delay to setting rates, requiring a drawdown in debt and risking a drop in the council’s credit rating.
But the compromise was not good enough for some councillors, with some saying they would only agree to an increase of 5%, and others raising worries about services running down and future ratepayers having to pick up debt.
Councillor Simon Reid put forward the compromise as a way of meeting what ratepayers were asking.
Councillor Simon Reid says the council needs to deliver services more efficiently. Photo / NZME
He also asked staff to simplify the 2026-27 annual plan to focus on efficiency gains and value for money, and do a rates review in line with the 2027-37 Long Term Plan.
“We need to listen to our residents and deliver the money, that they give us via rates, in a better, more timely and more efficient manner,” he said.
Councillor Paul Yovich also asked for a review of council’s procurement policy - which outlines the way the council pays for goods and services - to ensure it is efficient.
Councillors Marie Olsen and Jane Golightly said they wanted to see rates increase by just 5%. They voted against the 9.7% increase, alongside councillors Paul Yovich and Phoenix Ruka.
But when asked what the impact of a 5% rate increase would be, chief executive Simon Weston said it was so far removed from the 2024-34 Long Term Plan it would require consultation and likely a significant delay in setting rates.
The delay would likely result in rates not being levied quarterly - as they are now - but required in one lump sum, which could make it difficult for some to pay, he said. This would also impact the way Northland Regional Council collects its rates.
“In my opinion, it would impact the level of service. We would have to budget that or increase debt,” Weston said.
Councillor Patrick Holmes said the proposed 10.7% rate increase was high because councillors decided, through the Long Term Plan, they would not continue to use debt to fund day-to-day activities.
More pain came from central Government adding fees and charges on to local government, he said.
The Johnsons said they felt like their concerns over the unaffordability of rates had been heard by the councillors.
Evelyn Johnson said while the 9.7% increase was still more than they wanted to pay, it was better than the 10.7% increase.
The couple now hope to challenge their land valuation, which they say is out of step with other properties on their road.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.
