Opinion: Stand up and be heard on HDC rates

Federated Farmers Manawatu Rangitikei Horowhenua District Chairperson Geoff Kane. Photo / Cherie Taylor

Comment: Federated Farmers Manawatu Rangitikei Horowhenua District Chairperson Geoff Kane urges members in the Horowhenua District to make sure they're heard over rates.

Federated Farmers is calling on its members in the Horowhenua District to stand up and be heard in the face of another year of proposed unfair and out of control rates increases.

Horowhenua District Council is currently consulting on their 2019 Draft Annual Plan, with submissions due Monday.

The consultation document gives the impression not much is changing, with a minimal rates increase 0.02 per cent higher than forecasted in last year's Long Term Plan.

However, this is the average rates increase across all ratepayers and rural rates are proposed to increase by an average of 9.5 per cent.

I understand for many rural ratepayers, this increase will be more like 15 per cent.

The council is not proposing any new services or projects since the Long Term Plan was agreed, so why the need for such a large increase?

On further investigation, it seems the issue lies with a $900,000 overspend in the general rate.

As this rate provides services more likely to be used by urban ratepayers, it seems a long row to hoe to expect rural ratepayers to stump up the cash to offset overspending for activities that they see little benefit from.

Read more from Federated Farmers here.

An issue exacerbated by an unfair rating model that relies on land value as a proxy for how rates should be struck.

I am also concerned about the council's inability to keep within forecasted spending, given these changes are being sought in year two of the Long Term Plan.

I question the need of a considerable rates increase, despite no additional services to be provided.

It shows poor budget management from the council to be breaking a budget set only one year ago.

These concerns are further reinforced when looking at the council's debt management or lack thereof.

Last year's LTP forecasted debt to reach $157m by 2036, an unbelievable jump up from the $10m debt the council had just over 15 years ago.

But let's not stop there.

This year the council are proposing to re-forecast debt levels to $109m by June 2020 compared to last year's forecast of $105m.

I am concerned at what the new forecasted maximum will be, and have little confidence the council will keep to it.

The last four Long Term Plan budgets have been broken, and this last one did not last a year.

Not a great track record.

There is now a strong argument for a re-assessment of the council activities and services, with a view to halting progress on any projects not considered core business, supported by a significant reduction in operating expenses.

The council needs to focus the next 20 years on reducing debt and holding rates.