Gore Mayor: NZ rating system 'long overdue for a refresh'
“The average rate increase is significantly higher than the 4.59% forecast in our 2021 - 2031 Long Term Plan, but as we all know, a lot has changed since the LTP was adopted two years ago.”
Gore and Mataura residents will pay between $4.75 and $6.86 a week more in rates after the Gore District Council adopted its annual plan for the next financial year.
The 2023/24 Annual Plan delivers a 10.97% district-wide average rate increase.
However, the percentage increase varies depending on a property’s capital value and rating category.
Corporate Support General Manager Lornae Straith said last year’s district-wide revaluation has had a knock-on effect rating-wise for lower capital value properties.
Properties with a low capital value experienced a higher-than-average increase compared to other residential properties. This means they have attracted a higher of the general and ward rates, she said.
“The average rate increase is significantly higher than the 4.59% forecast in our 2021 - 2031 Long Term Plan, but as we all know, a lot has changed since the LTP was adopted two years ago.”
Gore District Mayor Ben Bell commended staff for their work on the Annual Plan.
Bell said there was a bigger conversation to be had around New Zealand’s rating system, which he described as “being long overdue for a refresh”.
It would be prudent for this Council and nationally to have a robust debate about funding for local government - “councils are being asked to do a lot more with a lot less money”.
Bell said the preparation for the 2024 -2034 Long Term Plan would be a great opportunity for a reset.
The increase in the Council’s debt combined with rising interest rates, and inflation have been key contributors to the rates increase.
Over the last three years the Council has undertaken major legacy projects, such as the new Gore Library.
“We are facing increasing costs for material and services, which means it costs more to maintain the same level of service our community expects.”
Due to economic circumstances beyond the Council’s control, the 2023/24 budget will be unbalanced by just over $1million.
The main driving forces behind this are increased finance costs, wages inflation, the Government’s increased waste disposal levy and the decision not to fund 3 Waters depreciation fully, Miss Straith said.
She stressed it was considered financially prudent to have an unbalanced budget for several reasons. These include the fact the Council will have enough income to meet its cash expenses.
An unbalanced budget is effectively a book exercise and means the Council would not collect enough revenue to cover the non-cash expense of depreciation.
“To achieve a balanced budget would have put the average rate increase at about 15.97%.
“In the current economic environment where our ratepayers are already feeling the pinch this would be an unnecessary increase in cost.”
Councillors also adopted the new fees and charges for 2023/24.
Council activities and services where there will be an increase in fees include:
Animal management – the fee for euthanising an animal will rise from $35 to the actual cost
Cemeteries – two new charges for the Pukerau cemetery
Transfer station – a 30% increase for general waste disposal to partially cover the Government’s 66.7% increase in its waste disposal levy and reintroducing a fee for green waste loads over 100kg.
Gore Aquatic Centre – increasing per swim charges by 50c, removing the charge for spectators and increasing fees for the Leaping Frogs and Stingray swim schools.
The new fees and charges will take effect from 1 August to allow time for signage and systems to be updated.