Near-20% rates rise on the cards for Upper Hutt ratepayers

Monday, 22 April 2024

Upper Hutt Mayor Wayne Guppy says the council has adopted a ‘back to basics“ approach to its long term plan.

Upper Hutt is facing a massive rates increase after the council proposed rises of 19.92% for each of the next three years.

The council is citing inflation and the need to invest in infrastructure as the reasons for the rises in its draft Long Term Plan. Overall it is proposing an average annual increase of 9.2% over the next 10 years.

The council is looking at options to reduce operating costs, which could include job losses.

Mayor Wayne Guppy said the draft Long Term Plan represented a “back-to-basics approach” that delivered core activities, maintained infrastructure and built financial resilience.

“The financial environment we are operating in has changed dramatically,” he said.

“We’ve had to re-prioritise the most important things for the future. In developing this long term plan, we’ve prioritised balancing the budget and this will take time.”

The plan had an emphasis on investing in water assets but in other areas the council was looking to reduce operating costs, Guppy said.

Chief Ombudsman Peter Boshier has made it clear that councils cannot rely on workshops for their decision making process.

“We have looked at every service, programme, and project to find areas where spending can be reduced or deferred.”

The proposed rate increase came against a backdrop of the council holding a series of workshops. In February a council spokesman confirmed that over the previous three months, the council had held eight workshops to discuss rates and three waters.

Although the dates of the workshops were listed on the council’s website, there was no reference to the subject or agenda. Unlike council meetings, the workshops were not broadcast.

In October Chief Ombudsman Peter Boshier issued a finding reminding councils nation-wide that they should not be making decisions in workshops.

On Wednesday, The Post sent the council a copy of the Ombudsman’s October finding.

“I’ve made it very clear that final decisions and resolutions cannot lawfully be made outside the context of a properly constituted council meeting. If councils were making decisions of this nature in workshops, they would be avoiding their responsibilities under the Local Government Official Information and Meetings Act,” Boshier said.

“Where meetings are concerned, councils must give advance notice and provide an agenda and supporting papers at least two days before the meeting. Meetings should be open to the public, unless there is good reason to exclude them. These meeting requirements can’t be avoided simply by calling what is really a meeting a workshop.”

There are tough times ahead for Upper Hutt ratepayers.

The Post asked the council a number of questions about the process used to arrive at a 19.92% rates increase.

The Post also asked for an explanation as to “why the council holds so many workshops and does not put the issue to be discussed on the council website page”.

In a brief written statement the council replied: “Council uses workshops to discuss and evaluate a wide range of topics and for a variety of reasons. Decisions are only made in formal council meetings.”

A proposed ‘back to basics’ approach had evolved through the development of the Long Term Plan, including in workshops, the council said.

“There is no prescribed Local Government Act (LGA) process for the use of workshops or meetings in relation to the development of the Long Term Plan. In accordance with the LGA, council adopted a consultation document and public consultation on the Long Term Plan is open from April 2 to May 2.

“Decisions in relation to the final Long Term Plan will be made after this at formal council meetings in May and June. Council is considering the Ombudsman’s report on workshops, which may result in future changes.“

Guppy said that like all councils, Upper Hutt was facing rising costs and it was more important than ever that residents comment on the plan.

“We must maintain our infrastructure and facilities on a tight budget while ensuring Upper Hutt remains a great place to live and work.”

In February The Post reported that an early draft of its long term plan had rates rising by as much as 35%.

Council chief executive Geoff Swainson acknowledged the council was facing significant financial challenges.

Councillors had held a series of workshops to look for savings and find a more acceptable figure, he said.

Residents have until May 2 to make a submission on the plan.

Correction: The council held eight workshops over three months to discuss rates and three waters. An earlier version of this story incorrectly said 13. (Amended April 22, 2024, 1.30pm)