Tararua’s 13 per cent rate rise: ‘What you’re talking about is going to take me over the edge’

It’s the last straw for Patricia Pye.

She says she cannot afford the rate increase proposed by Tararua District Council and has warned that she may not pay it if it means she’s unable to pay other bills.

“I’m not losing my home,” she told a panel of councillors and executives at a public meeting on Monday night.

The council has been attending public meetings in a consultation round for its 2023/24 Annual Plan, which included a proposed rate increase of 13.18 per cent.

At a meeting hosted by the Dannevirke Ratepayers and Residents Association, Pye asked the panel what they had to say to people who were on fixed incomes, such as herself.

“I pay my rates and I pay my bills, but this increase that you’re talking about is going to take me over the edge.”

She said there were a lot of people who felt the same way.

“What are we supposed to do? Lose our houses?”

Patricia Pye is not alone in her concerns, as she felt other people in Dannevirke were worried about how they were going to afford the rates increase. Photo / Leanne Warr

Pye also asked what help the council was going to provide for those in her situation.

She said she would not lose her house as a direct result of TDC’s increase, but was only living on a $ 400-a-week budget.

“I bought my house outright with the separation money, without a mortgage, in order to give myself a safe and secure home and I won’t let TDC put me at risk of losing that.

“I also want to speak up for other people ... in the same position as me that do have mortgages and rents to pay, because these increases will affect the tenants too.”

‘We didn’t really plan for the rainy days, which have arrived’

Chief executive Bryan Nicholson said they couldn’t provide individual plans for every person’s situation, but people were encouraged to talk to the council about their situation.

He said the council had costs associated with each service they offered.

“We understand that’s going to be a problem for a lot of communities.

“We can’t offer financial relief other than the rates rebates, [and there are] criteria around that.”

Nicholson said rates rebates were administered by the Department of Internal Affairs and the criteria were set around income, the number of dependents and so on.

When asked about comparisons with other North Island councils, councillor Kerry Sutherland said they did have a look at other councils, just to see what the comparisons were.

However, he said in the last 10 years, Tararua District Council had a period of about eight or nine years of very low rate increases, between 4 per cent and 1 per cent.

Kerry Sutherland: Years of low rate increases meant the council hadn't planned for a rainy day. Photo / Leanne Warr

“We took the easy way out - we just didn’t put any money in the bank.

“We didn’t really plan for the rainy days, which have arrived.”

Sutherland said other councils probably had a bit more money coming in from ratepayers, and thus were in a slightly better position, and it was unfortunate the council had high rate increases when times were tough.

“We couldn’t have got that worse, really.”

In dollar terms, rather than percentages, the increases put the rates on a more comparable level with neighbouring urban centres.

“It’s not much solace to people, and I appreciate that,” Sutherland said.

Group manager of infrastructure Chris Chapman said he was a little bit concerned when people looked at the percentage in isolation from everything else.

“We know that 13 per cent is a lot higher than our peers.”

He said when the council was going with increases below 5 per cent, other rural councils were going with between 8 and 10 per cent “because they recognised what they needed to do.”

“In real dollar terms, it is a lot lower despite the fact that in many cases, we face greater challenges to provide the services.”

For instance, there were seven water treatment plants and seven wastewater plants, but in Palmerston North, there was only one of each across around 60,000 people.

“These lower rate increases, we’re starting to see the impact of those now.”

Another ratepayer at the meeting felt the council was a business and questioned its ability to be able to work for the people rather than the Government, adding another layer of bureaucracy.

“You’ve put these increases on a community that’s already struggling and expect people to find it somewhere,” she said.

“I don’t know how you can justify the rises that you’re proposing.”

Councillor Scott Gilmore corrected the assumption that the council was a business, adding it was a body there to provide services and had to follow legislation.

He noted that when he was sworn in, he had to swear to uphold the laws of New Zealand, even those he didn’t particularly like.

“When we were looking at all of these regulations that have been put into place, as a brand-new first-term councillor, I’ve got to say, I was astounded.”

There were things the council had no choice over, such as regulations over earthquake-prone buildings, water, economic development and wellbeing.

Gilmore said he was the sort of person who always used to think with rate increases, the council should “cut the cloth to fit.”

“I sat down at that table and saw the things that we have to do, and you know what? That cloth just wasn’t covering anything.”

He said councillors were ratepayers too, and none of them wanted to recommend that sort of increase.

Scott Gilmore: Councillors are also ratepayers and didn't want to recommend such an increase.

Services such as drinking water and wastewater made up 86 per cent of the increase, and with stormwater and recycling, that added up to 95 per cent.

“That leaves us with very little wriggle room.”

otShe said she would ne would ose my house as a direct result of TDCs increase and pitentially putting me in the red. After alnu am o ly living on 400 pw benefits and have no other income. I bought my house outright out if the separation money, without a mortgage in order to give myself a safe and secure home and i wont let TDC put me in risk of losing th. .