Rates revolt

Clash over cost for ‘big city’ vision

Palmerston North’s proposed 6.4 per cent rates rise has provoked criticism that it is too high or unfair, but there are claims it is essential for the city.

Some 457 people have made submissions on the council’s small-city benefits, big-city ambition vision, with more than 78 of them touching on the size of the rates increases.

About 20 said rates were the price of progress, 30 said they were unaffordable or ‘‘monstrous’’, and others have criticised the council for sticking with an outdated system based on land values, not capital values.

The council has calculated the increase will cost an extra $2.80 a week for the average household next year alone, up to a total $2427 bill for the year.

Its deliberations at the end of the month will have to balance the conflicting advice about the level of the increase, but will not consider the way the rates burden is shared.

Labour-endorsed city councillor Lorna Johnson campaigned on an undertaking to push for a review of the rating system, which she said put too much of the burden on those least able to afford it.

But that option was ruled out after a private workshop with staff and councillors.

Johnson said the result of the confidential briefing was that there was not enough support to review further.

A shift to capital value rating, or at least changing the proportion of rates collected in fixed charges ($1413) would have been supported by several submitters including the Women’s Health Collective and Community Services Council.

Resident Paul Perry described himself as ‘‘a victim of land value rating’’.

He said the magnitude of next year’s rate rise was simply not acceptable, and he calculated future forecast increases would see his annual bill rise 59 per cent over 10 years.

Former Central Energy Trust Arena manager David Walsh said the rates increases were ‘‘excessive and unaffordable’’.

On the other side of the debate, Computer Care managing director Wayne Masters supported the council’s plans to invest in the city centre, at Te Manawa, at Central Energy Trust Arena and Victoria Esplanade.

He said Palmerston North needed to provide a high quality of living if it wanted to attract and keep talented people.

‘‘It’s a requirement on the city to do this.

‘‘I understand the financial pressures are great, but the city cannot afford to stagnate.’’

Masters said the council had not provided people with enough information about the returns that were likely to flow from investments it was planning.