Biggest rate hike in many generations coming
Council fronts up to the public
Horowhenua residents won’t be able to hit social media with CAPITAL LETTERS complaining they haven’t had a chance to be heard or informed as they brace for the biggest rate rise in 150 years of local Government in the district.
Horowhenua District Council is going to great lengths to front all sectors of the community - young and old as it grapples with increasing debt and ballooning costs.
Every three years, council locks in a Long Term Plan, setting an annual rate rise and prioritising spending, and this time around there is a heightened sense of penny counting with rates set to rise by a record 17.4 percent, at least.
To maintain the current level of service and projected spending would require a 23.6 percent increase.
With a debt level now sitting at $180 million and rising, HDC is reviewing expenditure line-by-line and is on a district-wide consultation drive to find a balance between “need” and “want” before signing off on a 20-year LTP.
Elected members and staff have fronted 27 different public meetings with community groups ranging from Grey Power to school students. Seven more events are planned before April 15.
Horowhenua Mayor Bernie Wanden said it was vital ratepayers and residents were aware of the challenges the district was facing and had every chance to be involved in decision making.
There was no shying away from the fact all councils nationwide were facing record rate increases to maintain existing levels of service, and Horowhenua was no exception.
“Challenging times call for challenging choices,” he said.
“Times are tough. The cost of living continues to rise, and like many households, council has some tough decisions to make.”
Wanden said in the three years since the LTP was last visited, council costs had risen by 30 percent.
“Council is not immune to cost increases and the challenges posed by inflation, interest rates, depreciation and insurance are having a massive
impact on our fixed costs, which leaves us with the challenge of balancing the community’s aspirations, while living within our means.
“The average rates increase we are proposing is much greater than we’ve seen in the past but is required to ensure our borrowings do not exceed our limits, that we can continue to
deliver our Three Waters services and we are financially sustainable into the future.”
Council had not been helped by central government attempts at Three Waters reform, which had cost tax payers almost $1billion, only for the onus for those services to now remain with local authorities.
The job of balancing the books was not helped by central government pressure to provide increased services with heightened compliance demands.
“We started from scratch, looking at costs and budgeting models to explore options to significantly reduce day to day running costs... and reviewed our fees and charges to ensure we have the balance right between user charges - where individuals pay for specific services they use, and the general rate where the overall community pays for services.”
“We need to hear your views on how costs are shared and who pays for what.”
The proposed rate increase of 17.4 per cent was an average increase and will vary from property to property, depending on location and property values.
Meanwhile, any resident could make a submission on the LTP, with an opportunity to speak to submissions in early May, a forum expected to last days.