Annual rate increase of 7 per cent in Horowhenua

Horowhenua District Council has settled on an annual rate rise of 7 per cent for 2023-2024. Photo / Nick Simmons

Horowhenua District Council (HDC) has locked in a 7 per cent rate increase but will have to make spending cuts to balance the books.

Initially, it proposed an overall annual increase of 7.9 per cent, but this week rubber-stamped a lower rate take on the back of extensive community consultation that saw a record number of submissions from the community.

The council had sought feedback from the public on a wide range of issues in recent months, including how rates were calculated as part of a rates review, as it looks to fund major infrastructure projects and manage debt levels.

It held numerous public meetings and used media in an effort to incite engagement. There were 418 submissions received as a result, with almost 80 per cent of those concerned about rates and rate distribution.

HDC was paying close attention to rates affordability, with rates forecast to have a cumulative percentage increase of almost 50 per cent between now and 2028.

Acknowledging the current rate annual increase is significant for many households, while also trying to balance the books, council officers would now work with contractors and service providers in an attempt to meet a targeted reduction in capital spending from $41 million to $35m in the coming year.

The sticky bit is that while rates were rising, so were the council’s own costs. That meant there would need to be fee increases in certain areas, like rubbish collection, as waste operators pass on increasing Government levies.

Budget expectations have forecast an operating deficit for the 2023-2024 financial year that is expected to be recovered in the coming years. Population growth was factored into calculating the overall rate increase.

Horowhenua Mayor Bernie Wanden and councillors passed the rate rise unanimously, in formally adopting its Annual Plan and Long Term Plan at the meeting. The council was required to adopt an annual rate by June 30 as the rating year starts on July 1.