With inflation driving up council rates increases around the country, South Wairarapa residents are keen to know what their next rates rise will be.
South Wairarapa District Council covers the towns of Martinborough, Greytown and Featherston. Photo: Sue Teodoro
Last year, South Wairarapa residents were shocked to receive a rates increase of about 29 percent after the council's Long Term Plan Consultation Document indicated a rise of 17.65 percent for the 2021-22 financial year.
The council apologised for the miscommunication last year and said the difference resulted from the council borrowing $1.5 million the year prior to give ratepayers a rates holiday amid Covid while still continuing with its proposed programme of works.
At Wednesday's Greytown Community Board meeting, chairperson Ann Rainford asked the council for information on the next rates increase.
"After the massive rates increase last year, residents were promised the council would find ways to provide for a minimum rates rise this year," Rainford said.
"Many residents are struggling to pay rates and deal with increased inflation this year."
She asked when residents would be told of the next rates increase.
South Wairarapa Mayor Alex Beijen told Rainford the council was still discussing the draft Annual Plan.
"You will be aware of the Long-Term Plan, which was consulted on and passed, that we have a planned rates increase of 8 percent or around that [for Year 2].
"We have made a commitment and implemented a large number of savings.
"We are now looking at the inflation rate, construction index, and rising costs and how we set that rate.
"If we are looking at more than what we planned with the Long-Term Plan, then we need to be looking at consulting with the public."
He said a decision on whether the annual plan would require consultation would be made "in the near future".
Alex Beijen said the council was still discussing the draft Annual Plan. Photo: LDR
Neighbouring Carterton and Masterton councils have adopted draft annual plans with rates rises of 6 percent and 6.9 percent respectively for the 2022-23 financial year.
However, Long Term Plan estimates were that rates would rise 4.5 percent in Carterton and 5.6 percent in Masterton.
Neither Carterton nor Masterton councils will be formally consulting on their annual plans, opting instead to run "engagement".
They said their annual plans were not materially different from what was consulted on in their Long Term Plans last year.
They attributed the higher-than-expected rates rise to inflation, among other cost changes.
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