Why rates are rising

Crystal Beavis

High inflation, rising interest rates and storm damage to roading mean Waikato District Council might have to lift rates for the coming year as high as double the 3.5% rise anticipated back in 2021.

The council has been re-examining its capital and operating budgets for the year ahead and – by the time this is published – is likely to have decided on a proposed, revised Annual Plan for 2023-24.

Economic conditions have changed dramatically since the council adopted its last ‘Long Term Plan’ covering the year ahead. We now face 7.2% inflation, rising interest rates, higher than expected depreciation costs on our assets, and now, also, disaster recovery costs of at least $8 million.

The huge damage to Waikato district’s roading infrastructure unleashed by February’s ‘atmospheric river’ and Cyclone Gabrielle is still being assessed, and could be even more than $8 million, but it will undoubtedly require changes to work programmes both this year and next (2023-24).

More than 100 roads in the district were impacted by February’s weather events, more than 2300 properties lost electricity, several areas lost mobile phone connectivity, and in Port Waikato properties had to be evacuated. Many of the roads and houses impacted by the wild weather need ongoing attention as the restoration effort continues.

While the council has a disaster recovery fund and natural disaster insurance in place, the magnitude of these costs still represents a challenge for a district with just 33,000 rateable properties.

Some changes being considered for the proposed Annual Plan are likely to be subject to consultation, so take the opportunity to have your say if this involves you.

A likely proposal for the community in the former Tamahere Ward to consider this year is a targeted rate to support the work of the Tamahere Mangaone Restoration Trust. The trust was established in 2013 to restore the native habitat in the Tamahere Reserve and it has since expanded its focus to include the Mangaharakeke Stream gully system in Tamahere.

The targeted rate proposal has been put forward to council, with the support of the Tamahere Community Committee, to enable the trust to undertake habitat restoration work on council reserve and publicly accessible land in the Tamahere gully area. This work would be supported with a memorandum of understanding with the council and would enable the Tamahere walkway project to progress faster and at a reduced cost, providing an increased level of service above what council would normally provide.

February’s weather events have put a new light on the need for this council to address climate change resilience and this will be a focus for the council’s new Sustainability and Wellbeing Committee.

The new committee is expected to oversee progress on the council’s climate action plan, as well as its economic development, social development and cultural strategies and programmes. It is overseeing the council’s emergency management work programme as well as the final development of a draft new conservation strategy, Taiao (Nature) in the Waikato.

Raglan, part of Waikato district

 

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