Council adopts reduced rates increase for 2024-25
A targeted stormwater rate, a $10 public good rate, and what may be one of the lowest total 2024/25 rate increases for any council in Aotearoa were confirmed following adoption of the 2024-27 Long Term Plan.
The Long Term Plan (LTP) is the council's key strategic planning document setting out the council’s programme of works for the next three years. It was adopted during an Extraordinary Council Meeting held on Wednesday 26 June.
The plan includes a total rate increase for the first year of 4.5 per cent. That was less than a 5.1 per cent total rate increase agreed to by the council during final deliberations held on 6 June, and significantly less than a 16.5 per cent total rate increase the council initially consulted the public on during April.
That initial 16.5 per cent proposal was on par with increases many other councils consulted their communities on. Whether other councils have agreed to rate increases less than 4.5 per cent will not be known until all councils have formally adopted their LTPs.
Kahika Moko Tepania told yesterday’s extraordinary meeting that people had been very clear a large rate increase would present challenges for many communities. “The people of the Far North asked us to keep their rates lower because of the affordability issues they are feeling right now.”
He says the result is especially gratifying as the reduction has not been achieved through the lowering of service levels to ratepayers.
However, he cautioned that individual ratepayers may see increases different to the 4.5 per cent total rate rise adopted by the council: “[It] will depend on the services you are connected to, or the differentials involved, or whether you are commercial or residential.”
Asked how the total rates increase had been reduced, CEO Guy Holroyd explained that a rigorous process had been followed through multiple reviews of the LTP process. This included a focus on key deliverable infrastructure projects, and forward projections of staff numbers. Another key factor was a $5 million special dividend from the council’s commercial arm, Far North Holdings Limited. “We expect in the future for dividends to be a focus [of Far North Holdings Limited] instead of retention of income.”
A total of 506 submissions were received during public consultation on the proposed LTP. Changing the stormwater rating system was one of three issues the council sought feedback on. A total of 54.3 per cent of the 374 submissions received on the proposal supported changing to a targeted rate, while 45.7 per cent favoured maintaining the status quo. The council agreed to adopt the new targeted rate, including a $10 public good rate to better fund stormwater improvements.
Changing the rating system for water supply and wastewater services was also considered. Out of 358 submissions received on the topic, 33.5 per cent favoured maintaining the current system, 34.9 per cent supported a district-wide rate, 13.4 per cent preferred a targeted ward rate, and 18.2 per cent opted for a scheme-based operational rate. After deliberating, the council decided to maintain the current rating system.
The third topic consulted on was an option to reduce or centralise service centres, libraries, and information centres, with a preferred option to create multi-purpose centres in specific locations. There were 400 submissions on this issue: 25 per cent supported the preferred option, 19.8 per cent wanted a centre for each ward, and 55.3 per cent favoured the status quo. The council opted to maintain the current setup, but requested staff explore and consult with the public on other cost-saving measures.
Written submissions on the LTP can be viewed here, while recordings of the verbal submissions are available on the council’s Facebook and YouTube pages. Elected members met on 6 June and 13 June 2024 to discuss and debate the proposed issues, and other matters arising from submissions received.
From 10 July, property owners can find out what rates will be applied to their properties for the 2023/24 financial year by checking the Rating Information Database on the council’s website.
Information on the capital works programme and budgets can be found in the final Long Term Plan here. The plan comes into effect on 1 July 2024. For more information, visit the Long Term Plan webpage.