Waikato Regional Council puts off rates increase

A proposed 8 per cent rates increase has been sent back to the drawing board after Waikato Regional Councillors had misgivings over staff numbers.

At a meeting yesterday, councillors rejected the draft annual plan budget for 2020/2021, which proposed a total increase in ratepayer revenue of 8 per cent.

A 6.5 per cent increase in rates revenue has already been decided through the 2018 Long Term Plan.

This 6.5 per cent includes a targeted rates increase for flood protection in lower Waikato and Waihou and Piako zones, funding for the Hamilton-Auckland passenger train, the costs of council’s relocation to offices on Bryce St and biosecurity programmes.

Council unanimously agreed not to reconsult on these funding commitments decided in the Long Term Plan.

But it was extra requests in the budget for more staff and salary increases that got some councillors riled.

The proposed budget requested funding for 13 new full time staff members, taking total employees up to 565 staff, as well as provision for 2.5 per cent salary increases.

Taupo¯-Rotorua councillor Kathy White said council had ‘‘lost the plot’’ when it came to rates.

‘‘For a number of years we had increases which were much lower than they are now, when we had a 0.9 per cent increase, a 4.5 per cent increase, we had 1.3 per cent decrease at one stage.’’

Council needed to look at how staff numbers had inflated, White said.

‘‘Every time we take on extra staff we have these salary increases that get spread over lots of people and that’s how our rates increases can get out of hand, because the staff component of our cost is actually quite high.

‘‘We should have started this whole conversation with what do we think our community can afford, and worked back from that.’’

Hamilton councillor Barry Quayle agreed. I think we’re missing the boat in terms of staff efficiency, he said.

‘‘For me in any organisation, you look at what you’re doing, you look at whether you’re fit for purpose, the efficiency, [new staff] shouldn’t be an automatic request.’’

Council will hold a workshop with staff to further discuss the budget, but a date has not yet been set for that.