Fairer' rates on hold for year

Proposed changes to the Far North's rating system, which would have seen hefty rates rises for foresters and dairy farmers in a move towards the user pays principle, have been put on hold until next year.

The Far North District Council's draft long-term plan 2012-22 was an attempt to shift to a 'fairer' rating system by dividing ratepayers into nine categories, levying each according to how much they used council services such as roads, sewerage and libraries.

The result would have been a huge jump in rates for foresters and dairy farmers, in some cases by a few hundred per cent, due to road damage done by logging trucks and milk tankers. Farmers were slow to realise the impact of the proposals, but had been rallying opposition in the weeks leading up to the council's submission deliberations.

Also hard hit were small towns with costly sewerage systems, because the draft plan proposed making ratepayers meet the costs of building their local systems instead of spreading the cost over the whole district. Hihi, Russell and Kaeo faced the biggest increases, while sewerage rates in Kaitaia and Kaikohe would have fallen.

Councillors met in Kaikohe last week to discuss the plan and the more than 1000 submissions, with all but one eventually voting to hold off with most of the changes until next year. Some councillors were sceptical of the numbers and methods used by consultants Morrison Low to come up with the roading charges.

As a result rates for 2012/13 will be struck using the current system, which means most sectors will see only modest shifts. Dairy farmers are still likely to face higher rates due to increased land values in the latest revaluations.

One change is that roading costs will be split out of the general rate and charged as a uniform $100 per assessment, but the council now has a year to revise the user pays roading charge option, which could become part of the LTP next year.

The equally controversial sewerage charges will, however, be retained, although the heftiest rates hikes will be reduced by spreading the capital costs over a longer period. The $1910 average total sewerage rate for Hihi, as proposed in the draft plan, will, for example, drop to $876 in the revised version. The charge in Russell will fall from $1387 to $1069, and Kaeo's from $1272 to $1074. A few towns, including Kawakawa, will pay more for sewerage as a result of the changes.

Councillors also voted to proceed with the proposed changes to water charges.

Figures as quoted could still change as a result of continuing deliberations. The council is due to pass the LTP on June 28, after which a full comparison with current rates and charges with those for the coming year will be possible.

A sigh of relief - page 8