Piha prices push rates toward city levels

Roofer Reuben Allison works on a Piha house. Homeowners say rates rises are "out of control". Picture / Dean Purcell

A weekly rubbish collection is their only council perk and they buy their own backyard tanks to store water and dispose of waste.

Given the lack of basic services, Piha beach residents say they should be living on the cheap compared with others in Waitakere City, who have luxuries like footpaths.

Bach owners at the popular west coast surf spot are suffering from rates fatigue.

An early warning letter from the city council says that their rates rise for 2005-06 will be influenced by a revaluation of their properties.

Piha values have risen by more than 70 per cent since the last rating values were set three years ago.

The letter says what their rates will be if the proposed rate requirement in the council's draft annual plan is approved in June.

Residents whose property value rose by more than the city average will pay a greater share of the council's total rates.

Piha, where beach-front sites change hands for more than $1 million, eclipses the average because rates valuations mirror the sale prices.

And, while the council is proposing to collect 7.5 per cent more in rates, the Herald yesterday found Piha people who were warned to expect to pay up to 53 per cent more than last year.

"Some people are absolutely devastated," said ratepayers' association chairman Graham Caley.

"If there are going to be $700 increases, the council must look at spreading the rates more fairly over the whole city, or make Piha a special rating area.

"Piha has changed. The super wealthy moved in and pushed property prices up.

"A person comes in and they just want a particular property and they pay a fortune for it.

"All of a sudden everyone else is paying rates accordingly on that valuation - whether they are retired and on low incomes, or who have taken over a property from parents and are not rich."

Waterfront house owner Ross Pownall said: "It's like city rates. I don't mind paying city rates but I expect to have city services."

He said a 40 per cent rates rise compounded a 35 per cent hike that resulted from Piha's 2001 revaluation.

"It's ridiculous and out of control.

"Without physical improvements, they cannot justify putting someone's rates up even 10 per cent."

Mr Pownall said the rates were based on the assumption that because you were living in a valuable property you were wealthy.

"People are suddenly forced to pull the plug because they can't afford to live there."

Residents with septic tanks pay $86 a year for the council to inspect and pump out the tanks every three years.

The council proposes raising the fee to $154.

It is not just Piha residents who say they carry an unfair share of the rates burden.

Massey pensioner Ron Wright said his proposed rates were double the $1400 he paid last year.

He is objecting to a rating valuation, saying that it assumed he could subdivide vacant land.

But Mr Wright said the land sloped too steeply for more than one house.

Council annual plan chairman Janet Clews said the council had no control over valuations.

It had a differential rate as property values moved up and the Piha rates quoted would take that into account, Mrs Clews said.

"They are not being charged for wastewater and water services by the council - and they can use council's general services, such as libraries and parks."

Mrs Clews said it was wrong that people on low incomes suffered from high rates but they were no different from those living in other beach places in Auckland where property values had risen and it was increasingly difficult for older people to stay there.

Piha rates rises

* Resident A
Land value $930,000, rates $3150, up 48.7 per cent.

* Resident B
Land value $510,000, rates $2270, up 53.5 per cent.

* Resident C
Land value $840,000, rates $2976, up 41.7 per cent.

* Resident D
Land value $700,000, rates $2681, up 39.7 per cent.