Te Tai Tokerau councils are all proposing increasing their general rates for the coming 2023-24 financial year.
Northland Regional Council (NRC) is topping the bill, proposing an increase of as much as 11.4%, on top of its 13.89% 2022-23 rates increase.
Whangārei District Council (WDC) comes next with an increase of up to 10.9%.
Far North District Council (FNDC) is proposing an 8.63% lift and Kaipara District Council (KDC) a not-yet-finalised draft proposed 5.34% rates increase.
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The councils’ increases are all higher than initially forecast and committed to just two years ago through their 2021-31 Long Term Plans (LTPs).
Far North Kahika (Mayor) Moko Tepania said his council’s increase was largely due to increased inflation.
“In response, the council has reassessed spending line-by-line in an effort to keep the total rates increase to a minimum while continuing to deliver core services to residents.”
FNDC is proposing a rating policy change to “better enable housing development” on Māori freehold land.
“The proposed rates remission policy will allow Māori freehold landowners to apply for reduced rates for a set period if they intend developing their land to provide housing,” Tepania said.
“Legislation already requires the council to enable housing development on Māori freehold land through the suspension of rate payment, but it is up to the council to decide what criteria landowners must meet to benefit from this offer.
“Our proposal sets out clear rules on what landowners must do to be eligible for rates remission and for how long that remission will last.”
FNDC residents and ratepayers can have their say on the proposed council rates increase until April 24, via its Annual Plan public consultation.
Meanwhile, WDC, which originally scheduled a 7.9% hike for 2023-24 in its LTP, is now wanting to lift that by up to 10.9%.
Three per cent of the proposed 10.9% increase would go to boosting roading funding, and dealing with Cyclone Gabrielle and other severe weather events.
WDC is also proposing an option to stick to the LTP’s original 7.9% per cent increase, which it says will mean needing to “manage any reductions in service delivery” and is likely to create financial pressures in future years.
Whangārei Mayor Vince Cocurullo said Cyclone Gabrielle compounded council-wide financial challenges.
“Council did not take lightly the decision to propose a rates increase beyond the 7.9% that was originally set as part of its Long Term Plan 2021-31,” Cocurullo said.
“We are very aware of the pressures being faced by households and businesses across our district. Our challenge as a council is that one of our main sources of income is from our ratepayers – who along with council – are all feeling the pinch and the impact of spiralling costs.”
WDC residents and ratepayers can have their say on the council’s proposed rates increase via its Annual Plan public consultation ending May 5.
Meanwhile NRC’s proposed rates increase of up to 11.4% increase compares with a forecast rise of 9.2% in its LTP.
NRC chair Tui Shortland said inflation was now nearly double what had originally been budgeted for the coming financial year.
She said NRC’s confirmed LTP plans included growing the council’s climate change adaptation and community resilience work, tsunami siren network upgrades, more biodiversity and biosecurity work and a CityLink bus services increase.
NRC was next year no longer rating for Whangārei’s proposed $64 million Oruku conference and event centre, which was being supported “through other avenues”.
The regional council’s up to 11.4% hike is one of three it is putting forward for public consultation.
Another is its preferred 10.2% cent increase. This would provide another $830,000 annually for recruitment and wages “in a changing employment market”, plus $270,000 a year for improving remote working technology.
It would also enable an extra about $500,300 annually to assist NRC’s Tāiki ē strategy supporting iwi, hapū in partnering with council in its environmental mahi.
The third NRC 8.9% per cent rates lift option is the LTP’s Oruku centre-adjusted figure.
NRC residents and ratepayers can have their say until April 21 on the council’s proposed rates increase, via its public consultation.
Meanwhile, KDC’s draft 5.34% proposed 2023-24 increase compares with its 2021-2031 LTP 3.92% forecast.
Kaipara mayor Craig Jepson said the council would be deciding this week on its final proposed increase.
“And I am confident that, if anything, we will be going lower than that 5.34%,” he said.
Jepson said he had campaigned on prudent council management and keeping costs down when he became mayor – as the council and its community headed into the difficult financial times ahead.
Councils are not always required to consult on their coming year’s Annual Plans, depending on what they are planning to do and how much funding this might vary from forecast LTP predictions.
Jepson said KDC would likely not be needing to do so for its coming 2023-24 Annual Plan rates increases.
Local Democracy Reporting is Public Interest Journalism funded through NZ On Air.