South Taranaki faces double-digit rates increase
South Taranaki residents are facing an average rate rise of 11.29 per cent this year with roading, water and town centre upgrades the big-ticket items in its long-term plan.
The draft 10-year plan was adopted by councillors on Monday to go out to public consultation.
South Taranaki District Mayor Phil Nixon said the district was on an upward trajectory and the council’s draft long-term plan was about maintaining that momentum while doing what was needed to look after assets.
“Residents have told us that they want to see better roads, our town amenities and gardens looking good, and an improved dog control service,” Nixon said.
“The big challenge for us is how we afford to do this at a time when local government is facing unprecedented cost increases.”
Local government inflation has risen about 20 per cent over the past two years.
Fuel, bitumen, electricity, construction, and insurance costs have all increased considerably — in some cases, contractors’ costs have increased up to 60 per cent.
“This means we need to pay more just to keep doing what we are already doing, without adding anything else,” Nixon said.
He said the council tried to find savings across all activities, including reducing budgets for things like the Ha¯wera Town revitalisation project, tourism and events, delaying some non-urgent capital projects works, increasing borrowing, and the amount council’s Long Term Investment Fund subsidises rates each year by an additional $350,000.
Town centre upgrades are planned in Ha¯wera, Manaia, Eltham, O¯punake¯, Pa¯tea and Waverley.
The average total rate increase for the 2024-25 Year is 11.29 per cent with an average rate increase over the next 10 years of 5.47 per cent.
“We know the rate increase will be really hard for a lot of ratepayers,” Nixon said. “It’s higher than what we want and higher than we’ve had over the previous 10 years, but it reflects what it costs to simply maintain existing services while ensuring our critical infrastructure meets our community’s needs and Government requirements.
“If we don’t maintain our assets well, they will cost us more in the long term if we have to replace them sooner than expected or all at once.
“You don’t have to look hard to see places around the country where years of under-investment by councils has led to unacceptable infrastructure failures, and we don’t want South Taranaki to be in that situation.”
According to Local Government New Zealand, of 48 councils surveyed, almost 80 per cent are proposing rate increases above 12 per cent, with the average being a 15.3 per cent increase.
Public consultation opened on Thursday, March 21, and closes on May 6. Council adopts its final plan by June 30.