Whangārei District Council has proposed a 10.9 per cent rate increase. Photo / Michael Cunningham
Whangārei District Council has proposed a 10.9 per cent rate increase. Photo / Michael Cunningham
Whangārei locals may feel a further sting in the pocket as a 10.9 per cent rate increase could be in the pipeline for next year.
Devastation from Cyclone Gabrielle and ongoing inflation contributed to the unexpected rise of at least 7.9 per cent, as was originally proposed for the 2023/24 financial year.
Whangārei District Council (WDC) is seeking public feedback on the proposal, with consultation beginning next month.
If rates were to increase by 10.9 per cent, this would be a 37.97 per cent rise on the original 7.9 per cent proposed. While the lower number may be more favoured, it may result in service delivery reduction and escalation of future financial pressure, according to the council.
That higher rise would mean 3 per cent of the total rates take could allow for roading repairs and maintenance, while a 7.9 per cent increase would offer a lower 2.5 per cent for storm damage repairs.
“Our community needs a well-maintained, safe and reliable roading network for our communities and economy to thrive,” said Mayor Vince Cocurullo.
Whangārei Mayor Vince Cocurullo says a rates increase will help fix our roads after Cyclone Gabrielle. Photo / Michael Cunningham
Cocurullo said the council is “very aware” of pressures faced by businesses and households across the district, and focused on how it may minimise any increases to rates, including $640,000 worth of cost reductions for the draft budget and deferring a number of projects.
“Our challenge as a council is that one of our main sources of income is from our ratepayers – who along with council – are all feeling the pinch and the impact of spiralling costs.”
The priority, according to Cocurullo, is to fund repair and recovery from Cyclone Gabrielle. He said the increase will generate additional revenue of $2.4 million for 2023-24.
The proposal has already drawn criticism from the public, with ratepayers taking to Facebook to air their concerns.
“Our council does not take putting up rates lightly. This is why we looked internally first, to find efficiencies here in our own space before moving ahead with this consultation,” said Cocurullo.
“One of those major efficiencies will be established by the new Civic Centre building – having our staff in one space and removing rental costs.”
Just last month, local governments and Waka Kotahi received a total of $250m in support of roading and access repairs, but Cocurullo said the cost doesn’t begin to cover the issue.
Slips alone are estimated to be at $20m and Whangārei District Council is only receiving a 53 per cent subsidy, with the Far North receiving 69 per cent and Kaipara 67 per cent.
“We need to make up this shortfall ourselves, which isn’t a fair situation. I am strongly advocating for this to change,” Cocurullo said.
What will the proposal look like?
As an example of what a 10.9 per rates increase can mean, the Northern Advocate looked at a property in Kensington.
The owner of this house in Kensington will see their rates rise by $336.97 a year if the proposed 10.9 per cent rise is imposed, $92.74 more than the $244.23 increase a 7.9 per cent rise would have been. Photo / Mike Dinsdale
The two-bedroom, weatherboard home has a 2022/23 rates bill of $3091.53 with a capital value of $630,000.
A 7.9 per cent rise would see an increase of $244,23 to $3335.53 for the 2023/24 year. A 10.9 per cent rise would see the rates bill go up by $336.97 to $3428.56.
What do councillors say?
In last Thursday’s meeting about the annual plan, Hikurangi-Coastal general ward councillor Gavin Benney was not in favour of the proposal to lift rates further than 7.9 per cent.
“I’m thinking of the young kids with mortgages who are now paying an extra $300-400 a week because their mortgage rates have gone up, because of all the other fees that have gone up, because of all the issues we’ve got, and we are just going to contribute to that.”
Bream Bay general ward councillor Ken Couper said he wants to provide a level of service to locals.
“When we were campaigning of course we did not know we were going to have a cyclone, we did not know we were going to have the wettest summer on record,” he said.
“But the reality is that it did happen, the reality is that it affected our roading network to a degree that we haven’t seen for a long time as a district.”
He said not providing the income to deal with the damaged roads would “lower the standard of service” to people in Whangārei.
Whangārei District Māori ward councillor Phoenix Ruka said a 7.9 per cent increase was as far as he’d support.
“I understand the necessity completely that we need money to pay for our services,” he said, “but I feel like we’re assuming that every single rates payer will then be able to afford the 10.9 per cent rate increase.”
Councillor for the Whangārei Heads general ward Patrick Holmes said in these “extraordinary times” the cyclone was a “game-changer for the district.”
“What it did do was highlight the precarious state of our essential infrastructure which we knew anyway.
“I think it’s essential that as a council we are transparent and open and we go and listen to what our residents say and fundamentally this is about spending whatever we take [rates] wisely.”
He said an increase in rates means the public will “quite rightly” hold the council to account and ensure wise spending occurs.
Cocurullo said both rate options will be included in the public consultation.
“We will take into account all public feedback before making our final decision for the district,” he said.
The consultation document is due to be adopted by councillors on March 30, and submissions will be received from April 5 until May 5. Details of where people can make a submission will be published once it is finalised.
