Upper Hutt council faces backlash over massive rates increases
Friday, 26 April 2024
A backlash is brewing over Upper Hutt City Council’s plans to increase rates by 19.92% annually for the next three years.
A petition is calling on the council to “stop the massive rates increases” proposed in their long-term plan.
“These rate increases could potentially cause major hardship for home owners, renters and the community as a whole,” the petition says.
Organiser Paul Fabian said there was a fear in the community that older people on fixed incomes would not be able to afford the increase.
“People simply cannot afford it, a lot of people are struggling.”
The petition “gives people a voice” and he was hoping the council listened to the community.
Community comment has focused on the council spending more than $50m upgrading the swimming pool, and the apparent lack of long term planning to meet the cost of water infrastructure.
Mayor Wayne Guppy said he understood why residents were concerned and that was why the council was calling for submissions.
Much of the increase was targeted at Three Waters infrastructure. Guppy said that like councils nation-wide, Upper Hutt had to deal with an unexpected huge increase in the cost of major projects.
“There is no sugar coating this. It is a tough time for the council.”
He pointed out that the council had consulted on the pool upgrade and there was overwhelming support for it.
Fabian accepted the council was in a tricky situation but said it should have seen the need to invest in water infrastructure coming and planned accordingly.
“The council’s financial mismanagement should not be the ratepayers’ issue.”
Although Upper Hutt traditionally had low rates, the increase over the next three years would change that and Fabian said it was unreasonable to increase the rates so significantly over such a short period.
The petition had created a lot of comment, with people like Marion Daue expressing concern about their ability to afford the increase.
“I’m terrified I won’t be able to afford to stay in my home and (will) have to sell up and leave Upper Hutt.”
Peter Lawson was also worried about the impact on home owners. “Under this proposal my rates would increase by more than $2000 in three years. It is difficult for most retirees and many others to find an additional $40 per week.”
Guppy said the draft plan represented a “back to basics approach” and the investment in infrastructure would “future proof” the city.
Former councillor, and business owner, Angela McLeod said it was not the size of increase that was the problem but the “cumulative” impact of high inflation and mortgage rates, a proposed increase of 10% on the cost of public transport and a large increase in Greater Wellington rates. People were feeling overwhelmed and the council could not ignore the issue of affordability, she said.
What is in the long term plan?
19.92%: The size of the average annual rate increase over the first three years of the plan.
9.22%: The size of the average rate increase over 10 years.
$546m: The proposed spending on capital works.
$13.62: The average weekly increase facing ratepayers in the first year of the plan.
23.4%: The increase in rates required if the council does not reduce operating costs. The council is proposing to reduce expenditure on city marketing and events, community development, economic development and sustainability.
$161,000: The amount the council would save by not offering community grants.
$23.65m: The cost of introducing kerbside recycling.
$200m (approximately): The debt level for the coming financial year. By 2032 it reaches $340m.
130%: The size of the increase in expenditure on water services over the next ten years, compared to the previous 10 years.
Submissions close on May 2.