Whangārei rates rising 17.2% will make it hard for some to pay, critics say

Keeping Whangārei up to standard, by covering cost increases and paying for ongoing storm damage, are the main reasons for the large rates rise, says Whangārei mayor Vince Cocurullo. Photo / Tania Whyte

Whangārei District Council’s 17.2% rates rise this year will result in some ratepayers struggling to pay, according to a former councillor.

The council signed off on its 2024-34 Long Term Plan, including endorsing a general rates rise of 17.2% for the 2024-25 year. Water rates will also go up by 5.4%, wastewater rates by 2.9% and flood protection rates by 4.9%.

The increases come on top of Northland Regional Council rates rising almost 16%, mostly to cover targeted rates for emergency services and sports facilities.

Whangārei mayor Vince Cocurullo said the increase is about keeping the district up to standard - covering a huge increase in costs and taking out anything financially inefficient - while continuing to make steady improvements.

Challenges have included ongoing extreme storm damage, hikes in inflation and insurance, population growth and having to plan for, then abandon, the previous Government’s Three Waters policy.

The council received 422 submissions on its Long Term Plan. Cocurullo said all were considered and resulted in several changes.

He urged anyone having financial difficulty paying their rates to get in touch.

“While the rates increase may present challenges to some ratepayers, I encourage anyone in hardship to contact our staff. Some rebates are available and payment schedules can help to spread the load without penalties.”

The council also wanted to ensure future ratepayers do not face hardship because of any shortcuts during this council’s time of stewardship, Cocurullo said.

But former councillor and Onerahi pensioner Brian McLachlan said if the council truly cared about ratepayers, it would not have accepted such a rates rise – the highest hike for the council.

“General ratepayers are getting hit hard,” he said.

“A payment plan is just kicking the can down the road – why put these people in this position in the first place?”

Mayor Vince Cocurullo says the council considered all 422 submissions and made a number of changes as a result. Photo / NZME

McLachlan pointed to savings made by Far North District Council, which reduced its rates rise from a proposed 16.5% to 5.1%. General rates at Auckland Council also increased by 6.8%, showing smaller rates rises were possible.

On top of the rates rises, debt is also increasing by $29 million this year alone, he said. Debt is forecast to keep increasing until 2030.

McLachlan criticised the council for spending $852,000 in the next two years to become a shareholder in regional development agency Northland Inc, when Whangārei was doing well without being a shareholder.

He also disagreed with spending $150,000 this year and $500,000 next year on developing the council’s commercial property portfolio, including investigating setting up a council-controlled trading organisation to manage this.

“Any private guy would go bust spending that money,” he said.

But Cocurullo said the council wanted to use debt only for the right things and keep it to a reasonable level.

“We want to eliminate anything that causes financial inefficiency, and this Long Term Plan sees council debt reduce from year six onwards.”

Becoming a shareholder in Northland Inc is about supporting a regional body to drive better outcomes for the district and Northland as a whole, he said.

“We have included funding for several local projects, including cycle trails at Waipu and One Tree Point, footpaths in Hikurangi and Ngunguru, and public toilets in Maungatapere and Pipiwai.

“Funding has also been included for several council-controlled and community organisations, including Whangārei Art Trust and the Whangārei Aquatic Centre, as well as new funding to strengthen and improve engagement with hapū.”

Cocurullo said extra funding has also been put into transport.

The council also agreed it will no longer monitor freedom camping, including not responding to enquiries and complaints about freedom camping unless external funding can be found.

The council also agreed to $565,000 in funding in the first two years to host an NRL game with the NZ Warriors, in 2025, at the Northland Events Centre.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.