Rotorua residents to see average 5.7 per cent rates rise in next year

Julie Avery says the rates increase will hit her household hard. Photo/Stephen Parker

Rotorua's residential rates have been set for the next year, with an average rates increase of 5.7 per cent.

The increases will vary per property, but households at the lower end of the residential market will pick up a larger portion than the rest.

The rates were set as part of the adoption of the Long-Term Plan 2018-2028 at yesterday's Rotorua Lakes Council meeting.

Rates must be set annually but the LTP also sets proposed rates for the next decade.

In the next financial year almost $43 million, plus GST, would be collected through general rates.

The financial year starts on July 1.

The council's chief financial officer Thomas Colle told the council that when considering the rates, where increases would fall was important.

"We considered affordability as one of the critical things that we needed to take into account," Colle said.

"The burden of where that increase falls was of great priority and concern to council and we tried to spread that as fairly and evenly as we could."

Colle said the 5.7 per cent increase was roughly made up of 1.5 per cent towards the increased costs of the waste management service, 2 per cent towards inflation, and the rest due to investment into capital expenditure and loss of revenue.

"Ultimately, because of what's happened in the revaluations, the lower end of the capital value market for residential will pick up a slightly larger portion than the rest and there was no way for me and the team to mitigate that with the tools that we had available."

Rates were a revenue source for the council and the revenue went towards everything from sewerage and waste to roads and community facilities.

Glenholme resident Julie Avery was likely to see her rates rise 8 per cent according to council's online tool.

She told the her rates were high for what she thought the council did.

She said the rise to more than $2300 would affect her one-income family and low-income families.

Proposed rates increases. The rate in 2023 is high due to the targeted rate for Tarawera sewerage scheme being introduced. Photo/supplied

"On one income it's going to be tight on everybody, not only the ones that own but also rentals. If you're renting the owners have got to get that money by raising rent and people can't afford that."

Rotorua District Residents and Ratepayers secretary Reynold Macpherson said the rates rises would affect people's lifestyles.

"The increases are compounding and take no account of their affordability," he said.

"RDRR would prefer prudence, reopening the museum and performing arts centre to restart revenue, and stopping the ridiculous waste on vanity and legacy projects. "

The council was also looking at rates review in 2019 but Colle said this was unlikely to change the overall rates increase but may change the way it's collected, such as through targeted rates.

The 2018/19 rates were due in four instalments. A discount was given to those who payed in full.

What rates cover
- Sewage disposal: 17 per cent
- Community Facilities: 14 per cent
- District development (building, planning, CCOs): 13 per cent
- Open spaces and recreation: 12 per cent
- Roads and footpaths: 11 per cent
- Water supplies: 10 per cent
- Governance: nine per cent
- Waste management: seven per cent
- Inner city services (parking, markets, toilets): three per cent
- Stormwater: three per cent
- Community safety: one per cent
Source rotorualakescouncil.nz