Foxton residents facing rates increases of at least 18.2 percent

Veronica from Manakau

9 May, 2023

Foxton residents will be facing at least an 18.2 percent increase in their rates if Horowhenua District Council adopts a proposed shift from land value to capital rating this month.

According to a graph included in the consultation document on amendments to the 20 Year Long Term Plan (LTP) and Annual Plan 2023-2024 residents who will also be facing double digit rates increases include Shannon 15.4 percent, Tokomaru 11.86 percent, Waikawa Beach 14.29 percent, Ohau 13.34 percent and Waitārere 10.27 percent.

The major beneficiaries of a shift in rating on capital values are Levin Business, Rural, Foxton Beach, Manakau and Hokio Beach. The graph also indicates rating benefits for some areas of Waitārere.

But if Council also vote in favour of introducing rating on capital value to some fixed charges, as well as the general rate, then rates will skyrocket even further.

Fixed charges the Council is considering rating by capital value include the budget for Representation and Community Leadership, Library and Aquatic Centres.

But despite the proposed increases Council is also considering reducing community services including community grants and funding arrangements with community groups, urban berm mowing and the Parks maintenance budget for mowing, weeding, maintaining playground, cleaning toilets and collecting rubbish at Levin, Foxton, Shannon, Waitārere.

Many residents would be hit further in the pocket if a user pays system of water consumption is adopted by voting in favour of installing water meters across the district.

It is also is unclear what impact a proposal to inject another $75 million into fixed charges for essential services including water, stormwater and wastewater will have on residents

The consultation document on amendments to the 20 Year Long Term Plan states, "The average impact is approximately $88 introduced over 3 years."

Group Manager Organisation Performance Jacinda Straker was unable to provide any details on what an average rates bill would look like once the proposed impacts of a $75 million budget blowout was taken into consideration.

"We haven't calculated rates per unit out...due to the likelihood of the operations transferring into the new entities then."

Water, stormwater and waste water assets and services will be transferred to ten new publicly owned entities by 2026 in response to Government reforms.

Ms Straker's explanation contrasts with reasons why The Audit Office gave the Council an 'adverse opinion'.

The Audit Office said Council was, "assuming that it will retain ownership of three waters infrastructure assets and remain responsible for the service delivery of three waters services" for the next 20 years.

68 individuals or groups have requested to speak to their submission on 10 to 11 May at hearings being held on proposed amendments to the 20 Year Long term plan and Annual Plan 2023-2024.