Matamata-Piako district council proposes 11.8 per cent rates increase in wake of Covid-19

Matamata-Piako District Council are proposing an 11.8 per cent rates increase for its residents. Photo / Hamilton and Waikato Tourism

Matamata-Piako District Council has been forced into handing a proposed 11.8 per cent rates increase to ratepayers, due to water reforms and freezing rates for 2020 due to the impacts of Covid-19.

The council has for several months been working on a plan for the next 10 years, taking a look at what needs to be done to help the district move forward.

The council signed off the draft plan and proposed 10-year budgets to be audited last week, with a total rates increase in the first year of 11.8 per cent.

It means council would collect 11.8 per cent more from rates than in 2020/21, but 1.5 per cent of that is expected to be covered by new ratepayers, as the district is continuing to experience strong growth.

This means existing ratepayers would fund 10.3 per cent of the total rates increase. How that impacts different properties would vary - some would see an increase of more than 10 per cent, and others would see less.

"This is a long term plan that is grounded in reality," said mayor Ash Tanner.

"We live here too and we don't like large rates increases either, but we are dealing with escalating costs in core areas of our business - like maintaining our roads, rubbish and recycling and complying with drinking water standards. We have no choice but to face these challenges head on.

"We're tackling those issues, but we also have some really exciting proposals included over the next 10 years, like revitalising our main streets, and planning ahead for recreation facilities - including an additional indoor stadium for Matamata, the Morrinsville pool. Projects that will help make our community a more vibrant, thriving place.

"We're also proposing to develop a new day spa in Te Aroha. We expect when the development is up and running it will be self-funding, so there should be little impact on rates, but a significant impact on the district - attracting both domestic and international visitors.

"We've put a lot of time into evaluating the options and trying to find a balance between these exciting projects, and what is affordable."

In June 2020, in response to Covid-19, council opted for a zero increase to general rates - which meant farmers had no rates increase at all, while urban properties had a small increase in targeted rates. The flow-on effect of this is that higher value farms will see a higher increase in 2021 than urban properties.

"We kept the increase to general rates at zero this year, but we have some big challenges that we have to face.

"Keeping rates low just to be popular puts our district in a dangerous position in years to come - no one will thank us in the future if we're facing 20-30 per cent rates increases because we weren't brave enough to face facts.

"Whatever the total draft rates increase is, the community will have their opportunity to have their say on it," says Tanner.

"We know that any rates increase, however big or small, can have a significant impact on some people in the community, and this council is committed to engaging with the community so we can make informed decisions."