Rotorua Lakes Council Annual Plan: Rates rise approved

Rotorua councillor Conan O'Brien was opposed to how the rates were set. Photo / Laura Smith

The council could end up “pricing the middle class out of Rotorua” after approving an average rates rise of nearly 9 per cent.

That’s the view of councillor Conan O’Brien, who made his comments during a Rotorua Lakes Council meeting yesterday where councillors signed off an average 8.8 per cent rates rise.

“How much more can these people take... if we are not careful we will be pricing the middle class out of Rotorua.”

But other councillors argued public feedback was clear that cost-cutting to the degree proposed was not acceptable and financial impacts to ratepayers were well considered.

If Rotorua Lakes Councillors wanted to go ahead with everything proposed in its long-term plan, it would have needed to approve an 11.95 per cent rates rise. Staff came up with 45 proposals that would reduce this to about 6.25 per cent.

These included stopping community funding, education programmes, beautification services and job cuts.

Consultation on the draft plan resulted in about 2100 submissions, the second most it had ever received.

Following hearings, councillors voted on which proposals they would scrap and which they would keep. This resulted in the average 8.8 per cent increase.

O’Brien and councillor Don Paterson did not support this.

Paterson submitted a petition signed by about 580 people who wanted the rates to be set below 8 per cent, and local businessman Steven Gardiner spoke to councillors on behalf of petitioners.

“The common theme from those I heard from, those who signed the petition was, ‘We can’t afford it’.”

He said he understood the cost to the council had increased and that rates paid for the work it did, but asked councillors to listen to the petitioners.

Paterson listed the impacts the cost of living and the recession was having on people and said their wellbeing should be a priority.

Councillor Don Paterson submitted a petition on behalf of 580 people against a rates rise higher than 8 per cent. Photo / Laura Smith

O’Brien said he supported him.

He believed the council took from the poorest and let the rich “off the hook” and the saddest thing about the process had been the council “turning its back” on looking at opportunities such as potential revenue from charging a bed tax for AirBnB-type accommodation and rating for vacant land.

“In my opinion, this is the worst annual plan we could have possibly delivered.”

He said it had thrown away an opportunity and it was not what he had stood for. About 20 members of the public clapped at him.

Mayor Tania Tapsell, on her first day back from maternity leave, disputed his comment the council took from the poor.

She said properties with a higher value would pay a higher rate.

When the discussion had finished she said the word “controversial” was correct when describing what had been proposed in the draft plan.

“For the first time, council went out and said, actually this is where we could cut spending.”

But community feedback had been clear in what people wanted to remain funded, she said.

The council had worked to balance its books and was back to being within budget this financial year and she said the council had limited abilities when it came to cost of living matters.

Tapsell noted the general election was coming up and provided another opportunity for people to have their views heard.

Councillor Gregg Brown said if the rates were set at 8 per cent as those who petitioned wanted, it would result in about $15 less than what was proposed for those with a lower-valued property.

Deputy mayor Sandra Kai Fong said the new council was effectively elected out of a public desire for change.

“We set about stopping the spend, and we did.”

She said the process had been collaborative and believed none of the councillors could say in good conscience they did not play a part in the rates rise.

Councillor Robert Lee said he had sympathy for the petitioners and had heard some of the public call the percentage rise “criminal”.

Rotorua Lakes Councillor Robert Lee shows colleagues what 2100 submissions looks like. Photo / Laura Smith

But he said he still supported it, and said he ran for council last year because he was unhappy with how he believed decisions were being made “behind the scenes”.

“That is not what happened this time around on our watch.”

He acknowledged times were tough and the council presented the community with a frugal plan, with as low an increase as it dared.

“We got an awful lot of pushback from the community.”

Councillor Fisher Wang said the different views were “enlightening” but he agreed with Lee.

He said councillors would have taken on feedback around affordability.

“We can’t forget when we were deliberating and making decisions on what services and proposals to retain, each and every one of us voted to retain some services.

“That was because we heard from the community a near-record turnout on how important these services and programmes are to the lifeblood of our city.”

Laura Smith is a Local Democracy Reporting journalist based at the Rotorua Daily Post. She previously reported general news for the Otago Daily Times and Southland Express and has been a journalist for four years.

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