Greater Wellington Regional Council chairman Daran Ponter. Photo / Mark Mitchell
Greater Wellington Regional Council chairman Daran Ponter. Photo / Mark Mitchell
Greater Wellington Regional Council says the expectation for action against climate change and other cost pressures will likely lead to a rates increase of more than 13 per cent next year.
It comes as Wellington City Council is working out how to reduce a forecast 23 per cent rates hike.
Both councils completely overhauled their current budgets to keep increases down in the height of Covid-19.
Greater Wellington Regional Council chairman Daran Ponter said no council wanted to be increasing rates.
"Most councils across the country significantly shaved their rates last year, but we can't continue to do that because that will affect the services we provide."
The regional council only pushed up rates by 3 per cent due to Covid-19 and the forecast rates hike next year is partly to compensate for that.
In comparison, rates were increased by 5.9 per cent in 2019.
Next year's increase also takes into consideration the council's purchase of almost 100 electric buses, as well as accommodating new rest and meal break legislation for drivers.
The council is also gearing up for changes to the Resource Management Act and work on water quality.
Ponter said he was keenly aware of big expectations from the community for action against climate change and the role the council plays as a front-line agency in sustainable environmental management and responding to the climate emergency.
But the issue that has the biggest potential to affect rates increases is the most difficult to predict.
Patronage across Wellington's public transport network is at about 83 per cent of what it usually would be. Photo / Mark Mitchell
The regional council looks after public transport, which has been heavily impacted by Covid-19.
Revenue has taken a hit because of lower patronage. To date, NZTA has picked up the tab and funded the shortfall.
But the regional council is unsure how long this commitment will last for and is making no assumptions.
Current patronage across the network is at about 83 per cent of normal. It's hoped this will continue to track upwards to more like 90 per cent next year.
Even then, the council would still be up to $10 million short of revenue each year.
Ponter said the general rule of thumb was that every $1 million translated to about a 1 per cent increase on rates.
"Either rates would have to go up or the fares, but I'm loath to put the fares up at a time when we're trying to encourage people to get out of cars."
