Rates hike

Manawatu¯-whanganui councillors are expecting to get an earful from rural residents as some face rates going up by more than 20 per cent.

"I would expect us to get quite a lot of feedback that our rate is too high." Lindsay Burnell, Horizons councillor

Manawatu¯ -Whanganui councillors are expecting to get an earful from rural residents as some face rates going up by more than 20 per cent.

Horizons Regional Council signed off the consultation documents for its Long Term Plan at a council meeting yesterday, and the public is able to have its say from today.

The plan has rates going up by 7.44 per cent on average in the next financial year.

That is higher than the 6.79 per cent average increase suggested in February, with the number changing after various workshops.

Rates were projected to go up each year for some time, albeit it a lower rate, before potentially being cut in 2026 and 2027.

Debt would also rise, peaking at $41 million in 2020, but the council plans to have most of it paid off by 2028.

It also has plenty of room to borrow more money if a big event, such as a repeat of the 2004 floods, came along.

Some of the significant items listed in the consultation documents include managing freshwater, investigating starting a regional facilities fund and increasing flood protection.

According to samples given by Horizons, rates rises are the biggest in Rangitı¯kei, Tararua and Ruapehu, with some residents in the latter potentially having rates go up by 22.8 per cent in a year.

Councillor Gordon Mckellar, based in the Manawatu¯ -Rangitı¯kei ward, said he was not happy with the 7.44 per cent rates rise, especially since most increases in the past decade had been higher than the rate of inflation.

‘‘A large increase raises issues of affordability for ratepayers.’’

Cr Bruce Rollinson, the sole Ruapehu representative, said he was given a serve over rates when he recently visited his local doctor’s surgery, where some patients had to pay their appointment fee in instalments.

‘‘It’s the poorest district in the region,’’ he said. ‘‘I think we are going to hear strongly from my district, and very strongly from the rural sector.’’

Cr John Barrow said people had to remember they were paying for a service. ‘‘Services don’t come for free.’’

Complaints would be few and far between if the council provided value for money, he said. ‘‘Yes, [the rate rise] is higher than typical years, but it is a consultation.

‘‘We are consulting and they are quite happy to say no if they want.’’

Cr Lindsay Burnell said the council was perceived to have done well in the past, but ratepayers would not be happy about a big rates hike. ‘‘They have had a gutsful.’’

Horowhenua, where Burnell lives, was in a ‘‘tricky situation’’, he said. Businesses and individuals were wanting to invest in the area, but many residents were on low wages.

‘‘I would expect us to get quite a lot of feedback that our rate is too high,’’ Burnell said.

Cr David Cotton said they had to be careful about future increases, as rates were not an optional bill. ‘‘I can drive a V8 ... or ride a bike. I can’t stop paying my rates.’’

The consultation documents are available at Horizons service centres, and online at haveyoursay.horizons.govt.nz, from today. Submissions must be in before April 30.