Proposals for building a resilient future

We’d love your views on anything at all, but especially these three proposals that have big implications for ratepayers.

1 Tackle the funding shortfall for three waters

We now have to fund $4.7m for our three waters operating costs in 2024/25, which we’d previously expected to be transferred to a regional entity. This accounts for five percent of the 17 percent average rates increase proposed in the first year of the LTP. We’re asking for feedback on whether we should fund this 2024/25 operating cost shortfall through rates or debt.

Our preferred option is to fund through rates, as we are seeking to actively reduce our debt, not add to it.

2 Proactively reduce Council’s debt

We need to drastically reduce our debt so we have the ability to borrow enough to pay for the unexpected, such as a major natural disaster. If we don’t start reducing our debt our interest repayments will be about $400,000 a week within 10 years. We’re asking for your feedback on which rates rise we should opt for to strike a balance between affordability, building capacity to borrow, and keeping our core assets in good shape.

Our preferred option is to go with the middle ground, which means a seven percent average rates increase for years 2 to 10 of the LTP.

3 Sustainable housing for our older people

The cost of providing suitable council housing for older people in our district is increasing. As councils are unable to access government funding to help cover the cost, we’ve been looking at how to improve this service without ratepayers continuing to foot the bill.

We’re asking for your feedback on whether we transfer our housing assets for older people to a new community housing provider, or to an existing one, or keep the portfolio within Council.

Our preferred option is to transfer it to a new provider, which we would set up to focus on the specific needs of Kāpiti residents. Tenants could potentially access government subsidies, lessening the burden on ratepayers.