‘Not for happy reading’: Hurunui ratepayers set for 10.5% rates rise

Nicole Mathewson Reporter from Northern Outlook

From local democracy reporter Adam Burns:
Hurunui mayor Marie Black believes the council has done everything it can to try to avoid a sizable rates increase for residents.

An average rates rise of 10.5%, more than double what was forecast in its long-term plan, is recommended by the Hurunui District Council for the 2022-23 year after the annual plan budgets were unveiled at its meeting last week.

The impact of inflation is highlighted as the main cause, putting a strain on council's operational and capital expenditure.

Council chief financial officer Jason Beck told councillors it "did not make for happy reading".

Black said after scrutinising the books, the council was left with little choice.

"[We] understand what it will mean to members of our community," she said at the April 28 meeting.

"I think we're all incredibly mindful of the impact but I think with confidence we can say we've looked at every aspect of the business to see where there are opportunities for savings to be made."

It could have been even worse for ratepayers after initial calculations called for a 16% increase.

Several areas in the budget were revised by council, in an effort to find cost savings, which brought the adjusted rate down.

Last year, the council approved an 8.5% average rate rise for 2021-22, followed by 4.99% increases for the following two years in its 2021-31 plan.

"Those budgets were based off a number of assumptions, including inflation and interest rates," Beck said.

It was revealed last week the consumer price index had reached a 30-year high, with the annual inflation rate at 6.9%, below expectations.

Council recently renewed its roading contract, allowing a budget increase of 30%.

It is expected the increase in contract rates will not result in an increased subsidy from Waka Kotahi NZ Transport Agency, as the level of subsidy for its programme was fixed at 52%.

"Any escalation in cost will be required to be met from the local share, which means an increase in rates," the council report said.

The increased costs to roading were predicted to be a "long-term economic trend."

Based off the most up to date numbers, only four other districts around the country are proposing average rates rises over more than 10%, including Tararua, Westland, Tauranga City and the Mackenzie district.

Some Hurunui councillors pleaded with operations staff at the meeting as to whether there was any other way to soften a potential rates rise.

Council chief operations officer Dan Harris was adamant there was no other way, without reneging on previous commitments or cutting council services.

The community has until June 6 to provide feedback on the draft plan.