Rates will increase in South Taranaki and services will not be cut - mayor

South Taranaki ratepayers are facing a rates increase for 2023-24 but no cuts to services.

South Taranaki district councillors have approved a 7.19 per cent rate increase for the 2023-24 year.

Despite cost increases of up to 20 per cent, councillors moved at Monday’s policy and strategy meeting to minimise the impact on ratepayers.

“Most councils around the country are facing similar rates increases, in some cases double-digit rate increases. But by undertaking a range of cost-cutting measures and redirecting some government funding, we’ve managed to keep the rate increase around the rate of inflation, without cuts to any services,” South Taranaki Mayor Phil Nixon said.

The council applied to the Department of Internal Affairs to redirect $1.12 million of the Government’s $4m Better Off funding to go towards its digital transformation project and district plan review.

“Like households and businesses across the country, Council is facing increased costs for the things we buy.”

Examples of rate increase impacts included the kerbside rubbish and recycling collection fees, which would jump from $195.50 to $220, and the dog registration fee going from $155 to $175.

“Also, as a result of reducing overall salary and training budgets and increasing some user fees and charges, we’ve been able to get our rate increase below local government inflation without cutting any of our service levels,” Nixon said.

“Local government inflation has risen by around 20 per cent over the last two years, for things like fuel, bitumen and electricity. Contractor costs have increased by 16 per cent, insurance and compliance costs driven by government requirements have increased considerably and interest rate increases have raised the cost of borrowing and financing debt.”

Previously, the council had anticipated a 4.72 per cent rate increase for 2023-24.

“As a council we are always very conscious about keeping costs to our ratepayers down and over the last seven years we’ve had a relatively modest average annual rate increase of 2.59 per cent, including a zero per cent increase in 2020-21 when we were trying to help businesses and households affected by the Covid lockdowns,” Nixon said.

“This year we’ve worked hard to minimise the impact of cost increases on ratepayers as much as possible by undertaking a number of measures such as not increasing our funded depreciation.”

The council will formally approve the 2023-24 Annual Plan on June 26.