Residents facing 9.9% rates rise
Hutt City residents are facing a rates increase of 9.9% as the city struggles to fund Three Waters and improving resilience.
For a ratepayer with a house valued at $815,000, 9.9% equates to an extra $5.02 per week.
In June 2022, the council signed off a 5.9% ‘‘back to basics’’ increase which included $41.8 million for Three Waters infrastructure.
An increase of 9.9% represents a change of direction for a council that has consistently delivered rates increases lower than other councils in the region. Wellington City Council is looking at increasing the city’s rates by 12.8%.
The focus of the draft plan, agreed at a meeting on Thursday last week, was very much on funding Three Waters and resilience.
Since December, when councillors agreed to a rates increase of 8.9%, the cost of various projects and services had significantly increased.
Wellington Water was seeking an extra $23m and the cost of bulk water had increased 24%.
The cost of the shared Eastern Pathway in Eastbourne, which includes a seawall for resilience, has gone from $29m to $80m.
Although the council increased its share of the extra cost from $7.5m to $25.5m it is not yet clear if the other funders – Covid-19 Response and Recovery Fund and Waka Kotahi NZ Transport Agency – will do the same.
The council is also still seeking outside funding of up to $28m for work to make the Stokes Valley entrance more resilient to slips and flooding.
Mayor Campbell Barry said the council faced significant challenges funding Three Waters and infrastructure.
He acknowledged that it was a difficult time for families and reminded councillors that it was still a draft plan.
Councillors could still change the plan if the community rejected the increase.
Former council chief executive Tony Stallinger, who is now a councillor, called for more effort to identify savings and said an increase of 9.9% was too much for ratepayers.
‘‘I believe we need to put a lot more pressure on our costs internally.’’
Councillor Josh Briggs said the increase reflected the need to address the serious problems that existed concerning water in the city.
Councillors agreed to defer the planned $20m refurbishment of the Petone Wharf until 2029, despite a plea from Petone Community Board members Mike Fisher and Kaz Yung.
Fisher described the wharf as ‘‘a project dear to many in Petone’’ and said he would like to see it restored before 2029.
The draft plan includes $300,000 a year for emergency repairs, and he hoped that would be enough.
The future of the wharf would be in the hands of a steering group looking at future development options in Petone.
Deputy mayor Tui Lewis said she still favoured retaining the wharf, which is closed to the public after sustaining earthquake damage.
It is a popular Petone attraction and would be a big loss to the region if it is not saved.
Chief financial officer Jenny Livschitz said that in the difficult economic climate, a 9.9% rates increase was the best option.
‘‘We recognise the need to prioritise and consider what we ask our community to pay for, given the economic climate.’’
As well as high inflation and borrowing costs, supply chain issues and a tight labour market were all driving up the cost of projects in the city.
Barry said the situation facing the city highlighted the need for Three Waters reform to proceed. Like many other councils, Hutt City is struggling to meet the cost of fixing its water infrastructure.
The current uncertainty over the Government’s reforms was making it hard to plan, Barry said.