The principal of Gisborne's largest primary school is "gobsmacked" by a proposed change to the rating system which could double fees as it is billed for most of its toilets.
Mangapapa School principal Paul Sadler. Photo: LDR / Alice Angeloni
Mangapapa School, which has 33 toilets and urinals, has come out in "100 percent opposition" to the proposal which will see them levied for 25 pans, or toilets.
Principal Paul Sadler said he hoped Gisborne District Council would "surely not look to use schools as a means of collecting extra rates".
The increase of about $5000 could mean their students would not get to experience the waka hourua each year, or could lose a teacher aide for a school term.
"Adding another $5000 to our budget means in no uncertain terms that our kids will miss out," Sadler said.
The council's revenue and financing committee voted in favour of the recommended policy last week, with the decision set to go before the Sustainable Tairwhiti committee to be ratified on 10 December.
The proposal is to combine the two existing wastewater rate charges, keeping residential households on a charge of one toilet per household, no matter how many they have, while commercial and industrial properties will be charged per toilet.
Charges for schools are based on staff and student numbers, and will be calculated as one toilet pan for every 20 students and staff.
A report prepared by district council staff said the rationale was to make those placing "more of a burden" on the network pay more.
Mangapapa School has 33 urinals and toilets, and the proposed rate change will have them billed for 25 pans. Photo: LDR
Sadler disputed this, saying their toilets were not used for 165 days of the year.
He also said they operated a deficit budget annually.
"This is not because we're frivolous. It's because the operations grant we receive from the Ministry of Education is not enough to support the increasing variation in the education needs of our Mangapapa kids and the differing circumstances of the parents and whānau in our Mangapapa School community."
Riverdale and Central schools also came out in opposition, as well as retirement village and resthome provider Beetham.
Beetham Village Finance manager Russell Snow says the proposed change would result in a 10 percent increase in rates. Photo: Gisborne Herald / Rebecca Grunwell via LDR
Beetham Village and Healthcare finance manager Russell Snow said the change would have a "dramatic effect" and was likely to result in a 10 percent increase in annual rates, amounting to $34,000 for their two companies.
"As a major employer in the district and a home to 236 elderly residents, the council needs to consider the wider effects of this policy," Snow said.
Beetham Village was not able to recover the cost of any increase in rates as it was only able to increase charges to residents by the increase in Consumer Price Index over the previous year.
"Any increase in costs must be met by the operator of the village - a considerable burden to cope with in very uncertain economic times," said Snow.
Mayor Rehette Stoltz, Deputy Mayor Josh Wharehinga and district councillor Kerry Worsnop supported a transition to the new rates for organisations which had already set their budgets for the coming year.
A paper prepared by staff also discussed options to address the funding concerns raised by schools, with options including a rates transition policy, which would give schools more time to adjust their budgets.
The council received 182 submissions on its five proposed changes to the rating system: the general rate, roading rates for forestry, wastewater, allocation of stormwater, and the city centre management and promotion rate.
The proposed changes to the rating system were adopted by councillors and will be confirmed in the 17 December council agenda.
The rating system is now included in the Draft Revenue & Finance Policy and will be consulted on with the Draft 2021-2031 Long Term Plan in March next year.
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