‘Between a rock and a hard place’
Big rise in rates and fees expected
A lot of this has come about through central government and what they have decided
Councillor Kylie Leonard.
Taupō District Council rates and fees are likely to rise sharply this year and the impact could be amplified by delays in adopting the Long Term Plan.
The new Government’s reversal of Three Waters legislation has sent most councils around the country into a tailspin as they scramble to update long-term plans to include the huge cost of wastewater, stormwater and drinking water.
Councils were given the option of preparing an ‘enhanced annual plan’ this year instead of updating longterm plans, but the Taupō District Council has opted to delay its longterm plan until at least September 30 instead, which in turn delays the adoption of the annual plan and the setting of rates for the 2024/25 year.
Policy manager Nick Carroll said the most obvious effect of the council adopting its long-term plan three months late would be that it might delay the collection of rates. Normally the first instalment of rates for the year was collected in August.
That could mean any increase which mayor David Trewavas said would likely be a “double-digit” percentage increase - would be spread out over the final three quarters, rather than the whole year.
Carroll said most council services and projects could be rolled over into the new financial year but high inflation meant costs for infrastructure had risen by 30 per cent in the last three years so any shortfall would need to be made up for by borrowing, which would add even more cost.
It could also have cash flow impacts on organisations that relied on the council for funding each year, including business development agency Amplify, Destination Great Lake Taupō (DGLT) and Town Centre Taupō and myriad other community organisations.
Carroll said while the government had recognised the pressure local government was under and had amended the law to allow long-term plans to be done later than intended, there was no doubt that delaying or amending the first rates instalment collection would be disruptive to ratepayers.
He said council officers would look at what the options were for rates collection in the 2024-25 year and would bring those to a council meeting on April 30 for councillors to consider.
Councillors had serious concerns about the impact on ratepayers of pushing back the adoption of the long-term plan, but felt that was the only option.
“A lot of this has come about through central government and what they have decided,” said councillor Kylie Leonard. “We’re stuck between a rock and a hard place, not through any choosing of our own.”
Councillor Danny Loughlin said it was “the best option out of a whole lot of sub-optimal options”.
In a report to the council Carroll said, in addition to the confusion for ratepayers, delaying the long term plan would create a “high-pressure work environment” for staff and elected members and a negative effect on wellbeing if not managed well.
He said there was still “a high level of uncertainty” that the council could adopt its long-term plan by September 30 because of the need to meet Audit NZ requirements and complexities around central government direction and NZTA funding for roads.