Response plan revealed

Struggling Wellington businesses and homeowners are set for a rates reprieve that could cost tens of millions of dollars.

A Wellington City Council workshop has revealed a wideranging pandemic response plan that includes rates freezes, dropping parking fees and fines until the end of June, and refunding consent fees on halted projects.

Mayor Andy Foster yesterday said that the plan could create a $70 million financial hole for the city, much of which would be covered by borrowing. He said the council was proposing to defer fourth-quarter rates bills, due in June, for six months for commercial and residential ratepayers affected by the outbreak.

Criteria for the deferment had yet to be determined, but benefits to commercial ratepayers would need to be passed on to tenants, Foster said.

The council also announced a range of other measures to help the city bounce back from the pandemic, despite forecasting a shortfall of between $60m and $70m for the 2020-21 financial year because of lost revenue. These included freezing council swimming pool and gym fees, and refunding some fees charged to food and liquor outlets.

The council had also suspended destination marketing in favour of promoting local businesses, while WellingtonNZ has developed online workshops to help businesses navigate their way through the pandemic.

It is also working on a city recovery plan and an infrastructure investment programme.

Projects that could be brought forward include the redevelopment of Frank Kitts Park, the planned Omaroro and Bell Rd reservoirs, the development of Te Nga¯ kau Civic Square, and Let’s Get Wellington Moving projects.

The council would need to borrow significantly, Foster said.

‘‘I won’t beat about the bush, the numbers are, to put it mildly, very challenging, and they will force us into some tough decisionmaking.’’

The council’s projected shortfall was the result of lost revenue from user charges as well as income from rental leases and dividends from the airport.

‘‘As of a week or so ago, we have no income coming in from our swimming pools, from parking meters and parking enforcement, and other revenue streams we use to keep rates down.

‘‘If we are to avoid a significant rates increase next year, then we will have to borrow significantly and possibly have to look at service cuts, and we know that such cuts don’t go down well with the community.’’

The proposals will be tabled at a council meeting next week.

Rates freeze petition

A rates postponement for 2020-21 was also being discussed.

Originally, it appeared a rates freeze was off the table. However, following the workshop, 12 of 15 councillors signed a letter to chief executive Barbara McKerrow, requesting a zero rates and user charge proposal be put forward.

‘‘We are listening to Wellingtonians and want to address their immediate needs in this time of crisis,’’ councillors said. Foster, deputy mayor Sarah Free and councillor Malcolm Sparrow did not sign the letter.

A council representative emailed all councillors stating: ‘‘We have received your request for a zero per cent rates increase option and this will be included in the council papers.’’