Rotorua residents facing rates rise

Rotorua's residential ratepayers are facing a 4.1 per cent average rate increase in the coming year after district councillors voted to go ahead with public consultation on rates increases.

Councillors voted nine to one to consult the public on its draft annual plan for the 2017/18 financial year at a meeting of the Rotorua Lakes Council today.

The draft plan sees an average rates increase across the district of 3.8 per cent, with 0.5 per cent of that factored in to cover losses after the closure of the Rotorua Museum due to earthquake damage.

For the museum recovery rate it is proposed every rateable property be charged an additional $14.20 per year - the same for everyone regardless of capital values.

Commercial and business rates are set to increase by an average of 2.7 per cent.

The proposed hike comes on top of a 6 to 8 per cent average rise for urban residents in 2015 and a 2 to 2.2 per cent average rise last year.

It is also higher than the 2.6 per cent increase signalled in the council's long-term plan and would be used to cover $3.5 million of additional borrowing - which was originally set at $2 million in the long-term plan for 2017/18.

Councillor Rob Kent was the only dissenting voice, saying he did not agree with the council's financial position, questioning the amount of debt the council would incur.

Rotorua District Residents and Ratepayers Association (RDRR) members, councillors Raj Kumar and Peter Bentley, voted to go ahead with consultation.

The council's chief financial officer Thomas Colle said the increase was required to "fund growth and critical projects and reduce debt over the long term".

The council also wants public submissions on proposals for the East Rotoiti/Rotoma sewerage scheme, a move to a 100 per cent targeted rate for waste services, the $6.5 million redevelopment and earthquake strengthening of the Sir Howard Morrison Performing Arts Centre, among other projects.

RDRR secretary Dr Reynold Macpherson said at first glance the draft plan was "unfair, unreasonable and financially irresponsible".

"The new museum recovery rate will hit the poor the hardest [and] that's not fair," he said.

"The proposed 3.8 per cent base rate increase is way above the 1.3 per cent Consumer Price Index increase.

"Using rates to 'fund growth', through selective subsidies, when demographic research predicts no growth or decline over the next 30 years, is irresponsible."

The draft annual plan will be available online from Monday.

Public consultation will begin on April 10, closes on May 12, and following submissions and hearings, the final annual plan will be adopted in June.

Proposed rates increase
An average rates increase for the district of 3.8 per cent
Urban residential rates to rise by average of 4.1 per cent
0.5 per cent of that increase is to cover costs of the museum closure
Submissions open April 10 and close May 12
Consultation also includes upgrade to Sir Howard Morrison Performing Arts Centre