Rates rises of 9% signalled for the South Waikato

Wednesday, 24 April 2024

South Waikato mayor Gary Petley has stuck to his word on rates but locals will still face rises of almost 9% for the next three years.

South Waikato ratepayers are in line for three years of almost 9% annual rates rises if their council goes ahead with its proposal.

The council’s draft plan for the next decade sees an average rates increase of 5.7% over 10 years with an average increase of 8.9% for the first three years, followed by 7.9% and 7.5% annual increases before dropping back to 3% for years six to 10 of the plan.

The council will meet on Wednesday to adopt the draft Long-Term Plan for 2024-34 for consultation.

The council states it is budgeting to spend $981m in the district over the next 10 years, including $238m on capital expenditure.

This includes $66.7m on water supplies, $50.4m on wastewater and $13.2m on stormwater.

The council’s debt is set to peak in 2028/29 at $115m, “even at this peak, we have room to borrow another $19 million if needed”.

The South Waikato District Council is planning on spending $130m on its ‘three waters’ infrastructure over the next 10 years.

“By 2053 we are expected to have 34,350 people living here. That is 8450 more than we had in 2022,” the consultation document states.

“We’ll need 2420 more houses to ensure people moving here have somewhere to live.”

A further $20.7m is proposed to be spent on community facilities, including a $16.1m “almost complete rebuild” of Tokoroa’s heated indoor pool complex, and $5.7m on parks and reserves.

The council also plans on spending $57.7m on local roading infrastructure.

The proposal for the next decade of average rate rises, by South Waikato District Council.

Last year, ratepayers were stung with an average 18.5% rates increase which chief executive Susan Law said was necessary because operating deficits were unsustainable, maximum debt levels would soon be reached, and a 0% rates rise in 2022 had left the council’s finances in a precarious position.

Mayor Gary Petley, who in January told the Waikato Times a repeat of last year’s record rates increase was “highly unlikely”, said the council was still in “belt tightening mode”.

“We acknowledge the cost of living concerns at the forefront of everyone’s minds, however neglecting our critical infrastructure any longer is not a sustainable option.”

He said last year’s rates rise was obviously unpopular but had left the South Waikato in better shape than many other councils across the country.

“I want to reassure you that we are doing everything in house that we can to maintain costs at current levels or reduce costs to create savings.”

LTP consultation will begin on May 3 and will run until June 7.

During that time, the council has so far organised three community “drop in sessions” for locals to discuss the plan with council staff and elected members.

These are scheduled for the Tīrau War Memorial Hall from 5pm to 7pm on Monday, May 13, the Plaza Theatre in Putāruru from 5pm to 7pm on Tuesday, May 14, and Tokoroa’s South Waikato Sport and Events Centre from 5pm to 7pm on Wednesday, May 15.