Far North District Council backs 6.7% rates rise after savings debate

Councillors debated a proposal to reduce the general rates increase from 6.7% to about 4.2%. Photo / Yolisa Tswanya

Far North councillors were split over how hard to push for savings, with some arguing the council should push hard to reduce rates, while others warned deeper cuts would hit community services and vulnerable residents.

Far North District Council elected members debated a proposal, moved by councillor Felicity Foy, to reduce the general rates increase from 6.7% to about 4.2%, a drop of 2.5%, during discussions on the annual plan at a recent council meeting.

The lower increase would have meant finding about $3.1 million in savings, with staff warning that would become increasingly difficult to achieve without cutting services or making structural changes.

The debate largely centred on whether the savings would be worth it for ratepayers. Councillors were told the difference between a 6.7% increase and a 4.2% increase equated to about 31 cents per week per $100,000 of land value.

Some councillors argued that even small savings mattered to households already under financial pressure.

Others said the reduction would likely lead to cuts to community services, parks, libraries, staff positions and community board funding, and could cost more in the long run if projects were delayed or borrowing increased.

There were also concerns that reducing rates would mainly benefit those with higher land values, while cuts to services would be felt most by lower-income residents, including people in social housing who do not directly pay rates but rely on council services.

Councillors were also reminded that the 6.7% increase had already been signalled in the council’s Long-Term Plan and followed a major reduction from an earlier projected increase of about 16.5% after a zero-based budgeting process.

Several councillors said the real opportunity to make significant savings would come through the next long-term plan, where the council could review services, capital projects and its overall structure.

Mayor Moko Tepania said he understood the pressure people were under but would not support the motion.

“I appreciate that people are financially burdened. They always are up here, but more so right now, just with the global conflict on and the recent weather event across the Far North ... I think that the exercise to try to find further cost savings to achieve that, to alleviate some of that cost pressure, is going to cost more in the long run.”

Foy said she was not supportive of the 6.7% rise and hoped they would be able to get it lower.

“But what I would like to do is part of the long-term plan is look outside of the box so we can look at those historic[al] things that we’ve always done and actually is that serving our community in the best way.”

“So, I don’t support the current motion, but I look forward to the Long-Term Plan, where we can strive to make those structural changes to our organisation and historic[al] costs that have always been there that cost our ratepayers dearly.”

The council ultimately voted down the proposal and voted to proceed with the 6.7% increase in principle, while continuing to look for further savings before rates are formally set.

The annual plan will still go out for community engagement before the final decision is made.

While some residents were not happy, Taupō Bay resident Fran Moore said she understood that services need to be funded.

“I find it interesting that people don’t want to pay rates but still want services ... I just believe that people who stand for council have a genuine care for their community, I think they get in and see the reality of life.”

Far North resident Stefani Lanne said she was happy to contribute but wanted the council to ensure rates were not being wasted.

“Like other taxes, I’m happy to contribute my share. But I absolutely hate it when they waste it. I am very careful with my money. It rips my nightie when I don’t pay for entertainment for myself and then council spends my rates money on events for others.”