Kāpiti Coast Grey Power is urging councils to restrict any rates increase to New Zealand’s 4.7 per cent consumer price index.
KCGP president Roger Booth said recent reports indicate the Kāpiti Coast District Council is planning a 12.5 per cent increase and the Greater Wellington Regional Council is also suggesting a double-digit hike.
“This is unacceptable. The councils, as our community leaders, should be showing the way for fiscal restraint, not blithely passing their costs on to ratepayers who can ill afford it.
“ASB economists say the average New Zealand household will have to find an extra $70 a week this year just to cover their costs.”
Booth said KCGP advocates for a membership of about 2700 over-50s, but he believes it speaks for the whole community.
“In our population of 55,000, 50 per cent are over the age of 50. We’ve reminded the councils that increases in council rates impact not only property owners but also those renting, as well as the businesses that employ our community.
Roger Booth.
“Insurances, borrowings, prices of foodstuffs, materials and even the separate rubbish collection service have all gone up for every household.”
Booth said it’s an ongoing spiral where increased costs are “dumped on individuals facing exactly the same financial pressures as councils”.
“Many Kāpiti residents, especially those on fixed incomes, can’t afford the increases and are going through the painful exercise of where to pare back. And sometimes that means going without meals or relying on the food bank, not turning on the electricity, dipping into KiwiSaver accounts for daily needs, and replacing clothing at the op shops.”
Booth said public consultation on rates rises was intended to take place next month.
“Kāpiti Coast Grey Power will be at the forefront of pushing for councils to cut their cloth and care for their community - and put their pet projects on the shelf.”
Have your say
Kāpiti Mayor Janet Holborow said, “We are very aware our communities are dealing with significant economic pressures in both their households and businesses”.
“All councils, including Kāpiti, are facing those same pressures, so this is top of mind for us as we work through the details of the long-term plan.
“As well as rising costs and increasingly urgent challenges like responding to climate change and the growth of our district, this time we’re also facing the unexpected return of our water assets to our books as a result of the repeal of the previous government’s ‘three water’ reforms.
“This will likely add another 5 per cent to our rates, which we had expected to see removed as the assets and debt would have been transferred to regional entities, but we’re pleased that our past investment has avoided the water problems facing our neighbouring communities.
Janet Holborow.
“We will remain focused on living within our means, as we look to balance affordable rates with how much we spend on maintaining or improving public assets and the day-to-day services that our communities expect us to deliver.
“And remember to check with council on whether you might be eligible for our rates remission scheme where homeowners facing extreme financial hardship may get a reduction in their rates, or other options to assist such as postponing rates payments.
“I strongly encourage everyone to have a say when we go out to consult on the long-term plan at the end of March, as knowing what matters most to our communities will help us make smarter decisions about where to focus our activities and your rates money over the coming years.”
Greater Wellington Regional Council Kāpiti representative Penny Gaylor said, “I recognise the significant pressure Kāpiti Coast residents of all ages and stages are feeling thanks to increased cost of living pressures, including for everyday essentials.
“Greater Wellington is not exempt from inflated costs — we, like other local authorities, are facing a 10 per cent increase in costs just from the additional costs of borrowing, insurance and inflation. We are also seeing significant cost increases in our capital construction programme — reflecting the rising cost of materials and labour.
Penny Gaylor.
“In December, our chair signalled we are currently sitting around 20 per cent in the first year and lower in the years after that. We have worked hard to look for savings across our entire programme by delaying capital construction programmes, keeping personnel positions vacant, reducing operational expenditure, using reserves [and] adjusting insurance cover as well as increasing the length of borrowing terms.
“We know that current and future residents of the Kāpiti Coast and the wider region want us to continue to deliver our critical services, including our train and bus services, our parks, flood protection and river management, and protecting water quality and biodiversity. We are trying to find a balance between affordability and providing services that benefit the people of the Kāpiti Coast.
“Residents will be advised of the proposed changes to regional rates and what services we plan to deliver when consultation opens on the draft long-term plan in late March. We encourage all residents to engage in the debate on where the balance best lies.”
