Council consultation on rates deferral

The Invercargill City Council is calling for public submissions on a scheme to help people experiencing financial hardship.

On Tuesday, the city council opened public consultations on a proposed Rates Postponement Remission Policy.

The council scheme is proposed to help those affected by epidemics, pandemics and natural disasters, a spokeswoman said.

The scheme would be included within a new combined rates postponement and remissions policy that will replace the existing separate policies, she said.

The council was also seeking feedback on its fees and charges for the coming financial year.

The public can share their views on both documents before 5pm on May 29, in the public documents section of the council’s website.

If a ratepayer’s income had been reduced by 20 per cent or more, they could postpone their rates by a year, after which time they would have ‘‘the opportunity to convert this to a targeted rate to allow for up to an additional three years prior to repayment’’, a council information document says.

An interest rate of 3.5 per cent would apply and all rates would need to be repaid at the end of the postponement period.

Many had called for the council to adopt a zero per cent rates rise for 2020/21, including council finance and policy chairman Nobby Clark.

Invercargill resident Leon Harnett launched a Change.org petition suggesting councillors did not have the mandate to increase rates at this time. The petition has 264 signatures. At a full meeting yesterday, councillors received a report recommending a 2 per cent rates rise.

The report, by the council’s group manager of finance and corporate services Dave Foster, says a zero rates rise compared to a 2 per cent rise means the debt level of the council in 10 years’ time will be $12.5 million higher, ‘‘pushing the city very close to its debt limits’’.