Sleepless nights before nightmare rates increase for the South Waikato

Friday, 30 June 2023

The South Waikato District Council has approved an 18.5% rates rise by six votes to four.

South Waikato councillors complaining of sleepless nights have delivered a nightmare 18.5% rates rise for residents, one of the highest in the country.

On Thursday, the South Waikato District Council voted six votes to four to proceed with its proposed 18.5% average rates hike across the district.

Almost all councillors said they had sleepless nights attempting to justify the increase, but those in favour said they could not continue to “kick the can down the road” and let future councils take the heat for increasing rates.

Deficits and rising debt levels put the council’s finances in a precarious position, South Waikato District Council chief executive Susan Law has said.

Those opposed said they could not agree to such a large increase when many in the community were already suffering due to the cost of living crisis and rising interest rates.

South Waikato District mayor Gary Petley and chief executive Susan Law at the rate-setting meeting.

In early May, the council released its 2023/24 draft Annual Plan for public consultation with proposed rates rises of 27%, 18.5% and 10% on the table.

At the time, chief executive Susan Law signalled that operating deficits were unsustainable, maximum debt levels would soon be reached, and a 0% rates rise last year had left the council’s finances in a precarious position.

She said anything lower than an 18.5% increase would see major cuts to a range of council services, including community grants, local roading projects and the closure of outdoor pools in Putāruru and Tīrau.

The South Waikato District Council’s rates rise will be one of the highest in the country.

Voting for the recommended increase were councillors Hans Nelis, Hamish Daine, Thomas Lee, Josiah Teokotai, deputy mayor Bill Machen and mayor Gary Petley.

Voting against were councillors Sandra Wallace, Marie Farrell, Kerry Purdy, and Maria Te Kanawa.

Councillor Rebekah Garner was absent and had sent her apologies.

Daine said he would have voted for a higher increase and “low rates increases is how we got here”.

“Anything less [than 18.5%] would mean we will have to restructure our services and what we deliver to our community.”

“If we don’t do this now our debt limit will be breached by 2026/27,” South Waikato District Mayor Gary Petley said.

He said he wanted to protect ratepayers from continued double digit rates increases in the future.

Wallace proposed a 15.5% rates increase and said the council could sell some of its assets, chase those in arrears to pay their outstanding rates bills and introduce more user pays fees.

“We have some control over rates … it’s not the time to go in for the kill, we need to show some compassion,” she said.

A total of 270 people attended public and targeted information sessions during the month-long consultation process, with 88 submissions received.

Mayor Petley said he knew people were hurting but tough decisions needed to be made to prevent financial problems being dumped on future generations.

“If we had the ability to wind back the clock we would not be in this position today … and I would not have made the same decisions.

“But, if we don’t do this now our debt limit will be breached by 2026/27.”

Law said rates payments don’t need to be made quarterly and could be paid weekly, fortnightly or monthly.

She encouraged people to talk to the council about payment options and if they were eligible for the Government’s Rates Rebate Scheme.