HE AHA NGĀ MOMO RATONGA MŌ TŌ TĀTOU HAPORI? WHAT SERVICES DO WE NEED FOR OUR COMMUNITY?

Unlike other councils who may have a port or an airport to augment their income, rates continue to be our main source of income and now make up just over 80% of our operating income.

How the impacts of other consultation questions are worked into the rates figures

The decision to propose a significant rate increase is not one we take lightly, especially under the current circumstances. Yet, to maintain the levels of service our community is accustomed to, we’re looking at a substantial rate increase. We’ve started re-evaluating everything from scratch, scrutinising our operational costs and exploring every opportunity to make significant reductions. We are working hard to find operational savings across the board, but to just cover cost increases like interest, depreciation, insurance and utilities, we’re looking at an average rates increase of 14%. But to fully manage the increasing costs of operating a business, while maintaining current service levels, we’re actually facing the need for an average rates increase of 23.6%.

The weight of proposing a significant rates increase was difficult for Elected Members, made worse by the ever-rising costs many households are experiencing, and our district having a disproportionately lower than average household income compared to the rest of New Zealand.

Visit www.horowhenua.govt.nz/RatingDatabase to calculate the impact of the preferred option on your rates.

The figures you get from the horowhenua.govt. nz/RatingDatabase calculator all include each of the ‘preferred options’ for questions we are consulting on about managing waste and how costs are shared. They don’t need to be added in. (By law we have to identify ‘preferred options’ and to create a draft budget, but that doesn’t mean Council has already decided on the issues.)

OPTION 1 (STATUS QUO) Urban continues to pay, some rural properties subsidised to receive the same service

This option proposes that we would continue with our current approach to service delivery. This means to continue the service to existing urban and rural properties. This includes only offering new properties in urban locations kerbside recycling.

Rural properties currently receiving the service, and provided it is deemed safe to do so, would continue to receive the service with no contribution towards recycling (they do however continue to pay the rural portion of the solid waste rate).

OPTION 2 (PREFERRED) Transition to a Targeted Rate for kerbside recycling Urban and Rural share the costs evenly to continue receiving recycling services.

This option proposes to keep the waste service delivery as it is until 1 July 2026 only, recognising that this approach isn’t aligned with the best practice for rating models (risks set out below). During this period, we would continue the kerbside recycling service for both existing and new properties in urban and rural areas currently receiving the service, provided it is safe to do so.

OPTION 3 Urban only kerbside recycling from 1 July 2026 Urban continues to pay and only Urban receives the service

This option could only take effect from 1 July 2026 when the existing service contract ends. The services include removing the existing rural service to the 2,200 properties that currently receive the service. This option sits within the Ministry for the Environment (MfE) guidelines and allow the benefits of a new contract tailored to kerbside recycling only to urban areas.

OPTION 4 Removal of Kerbside Recycling in the district from July 2026

This couldn’t come into effect until 1 July 2026 as we have a Kerbside Refuse Collections contract that continues to mid-2026. This option is included because affordability is a key factor in providing services within the district. We anticipate our district would require the implementation of five additional Mobile Recycling Stations to manage demand. (i.e. towns of 1000 people or more) by 1 January 2027” .

For a summary of the advantages and disadvantages of each option and the impact on cost, rates and debt visit letskorero.horowhenua.govt.nz/LTP2024-44 or scan this QR code.

Managing and minimising waste

The government requires all councils to produce a waste management and minimisation plan (WMMP). The plan helps us to comply with legislation and access waste levy funding from the government. As part of this consultation, we are asking you to provide your input into our draft Waste Management and Minimisation Plan 2024.

Our draft WMMP is available on letskorero.horowhenua. govt.nz/LTP2024-44 or by scanning this QR code