Feedback sought on mooted 5pc rates rise

Wellington ratepayers will get to have their say on a proposed 5.07 per cent rates increase when the city council’s draft Annual Plan is put out for public feedback.

The proposed increase was one of a number of recommendations passed by the council for the 2020-21 financial year during a Zoom meeting on Thursday.

Also included were proposals to defer rates payments for commercial property owners affected by the coronavirus pandemic, and debt-fund a forecast $48 million in lost revenue.

The rates deferrals would be available to commercial property owners receiving government financial support or a mortgage suspension from their bank to help them through the pandemic, and would allow them to delay quarterly payments for up to six months.

The scheme is not available to Government-owned properties or those owned by utility companies.

Councillor Iona Pannett also pushed through several initiatives under her

Tipu Toa: Build Back Better proposal.

They included an extra $200,000 for the council’s weed management programme aimed at protecting indigenous biodiversity, increasing the number of home energy audits, and a programme of minor works to improve pedestrian safety.

She also won support for providing an additional $100,000 for the Built Heritage Incentive Fund, available to heritage building owners for conservation and earthquake-strengthening work.

The council came under fire from regional mayors earlier yesterday after a facilitator had to be brought in to help

iron out problems among councillors.

Pannett took the opportunity after her proposals were accepted to fire back at the criticism, thanking councillors for their constructive discussion ‘‘on a day when we were told we are not unified’’.

The $48m debt forecast by the council included a predicted $24m shortfall from normal user charges such as use of community facilities, as well as a range of fee freezes, rebates and discounts.

It also included a forecast $14m loss in revenue from its annual Wellington Airport dividend, and a $10m drop in rates-funded operating expenditure.

Before the pandemic outbreak, the council had planned to generate an additional $11m in 2020-21 from fee increases, with the largest proportion due to come from building consent, parking and landfill fees.

The updated predicted loss in revenue comes from freezes and discounts on things like council gyms and pool memberships, library fees, and food and alcohol licence registrations and renewals, among others.

‘‘The general assumption is fees and charges revenue will be approximately 60 per cent of predicted levels in July 2020, increasing to 100 per cent by the end of October 2020,’’ the document said.

The council had also planned to remove the rates discount for people building their first home or purchasing a new build in Wellington, noting poor uptake of the scheme.

However, Pannett’s amendments overturned that plan, meaning the policy will stay.

A separate pandemic response plan has been drafted by the council, but is not part of the draft Annual Plan.

The draft Annual Plan will go out for public feedback from May 8 until June 8.

The general assumption is fees and charges revenue will be approximately 60 per cent of predicted levels in July 2020, increasing to 100 per cent by the end of October 2020.

Wellington City Council draft Annual Plan