Kaiko¯ura rates relief on the way

Kaiko¯ ura people struggling to pay their rates in the post-Covid downturn will have more time to pay – and lower penalties if they are late – at least for this year.

And those in serious hardship can apply for help from the Mayoral Earthquake Relief Fund.

Those are two of the measures approved by the Kaiko¯ura District Council to help ratepayers affected by the economic recession.

Council rates will go up this year despite the downturn, but by less than 5 per cent, instead of the 9 per cent the council was proposing pre-Covid.

To take some of the sting out of that, it is giving all ratepayers an extra month’s grace to pay this year’s rates: payments due on June 20 will not need to be paid until July 20.

Payments later than that will attract penalties of 5 per cent – instead of the usual 10 per cent.

And people who have qualified for a mortgage holiday or the government’s relief package will be able to drip feed their payments over the 2020-21 year with no penalties, if they arrange a payment plan with the council.

If they still have rates unpaid by June 30 next year, they will pay a 3 per cent penalty, for a limited time.

Councillors also voted last week to make the Mayoral Earthquake Relief Fund available for rates relief.

Finance manager Sheryl Poulsen said the fund had about $24,000 left in it, and people would be able to apply for a grant of up to $500 to go towards their rates bill.

‘‘Applications have dropped away substantially relating to the earthquake, but families are beginning to experience hardship as a result of Covid-19.

‘‘It seems sensible to apply these funds to help those most in need.’’

Poulsen said the Covid-19 pandemic had changed the local economy dramatically and its full effects were still unclear.

The council aimed to provide rates relief to enable ratepayers who were most impacted to manage their cashflows, but could not afford to do more.

‘‘The Kaiko¯ ura district is still recovering from the 2016 earthquake and is not able to offer significant rates remissions to any sector of the community.

‘‘Rates are essential to enable the rebuild programme to continue, and for the council to invest in projects which will help to keep the economy going.’’

If rates were not paid, Kaiko¯ ura’s recovery would be slower, more painful and more expensive next year.

Kaiko¯ ura rates increase sweetened by relief options.