'I’ll have to leave': Residents say brutal rates rise will drive them out

Food For Love co-founder Rebecca Sarginson says the proposed increases will force out people who...
Food For Love co-founder Rebecca Sarginson says the proposed increases will force out people who had lived in the area ‘‘their entire lives’’. Photo: ODT files
Distraught residents say rates rises of almost 30% will push families in Hāwea and Luggate into debt and destroy lives.

Properties in the small Upper Clutha townships could face rates increases of 29% (Luggate) and 22% (Hāwea) which, if approved by the Queenstown Lakes District Council, would come into effect next year.

The council’s annual plan hearings began in Wānaka yesterday and, as submitters outlined the impact the increases would have, tears were shed.

Food For Love co-founder Rebecca Sarginson, who has called Lake Hāwea home for the past 47 years, said the proposed increases would force out people who had lived in the area ‘‘their entire lives’’.

‘‘I know some people may say it’s just life, if you can’t afford to live here then move,’’ an emotional Ms Sarginson told councillors yesterday.

‘‘It’s not that simple.’’

Ms Sarginson said she wanted councillors to understand residents were not just numbers on a page, they were ‘‘real people, real families and real lives’’.

‘‘This is our home, our community and for many of us it is where we have built our lives, raised our children and invested decades of hard work.

‘‘They [rates] have the power to empty bank accounts, push families into debt and destroy the dreams of people who have worked their entire lives, all in the name of a growth that is not paying for itself.’’

Luggate resident Jennifer Moss said ‘‘Luggate’s soul and heartbeat’’ had begun to die and many residents could no longer afford to live there.

Ms Moss had lived in Luggate since 2012 when she and her late husband built a house for ‘‘way less than half a million dollars’’.

‘‘My home is now deemed to be worth $1 million, which is not my fault.

‘‘Now I’m the sole owner of our home, as my husband died nine months ago, my income has been reduced while my house is valued at $1m, so I face a 29% rates rise.

‘‘This will mean I’ll have to leave the Upper Clutha,’’ she said.

Hamish Bell, of Luggate, who presented via video call, said the 29% increase followed an 18% rates increase last year.

‘‘In local government terms, that’s not a marginal adjustment, that’s a step change, and I think we need to be thinking about that quite carefully.

‘‘In a small community like Luggate, with working families, retirees, and people already managing pretty significant cost-of-living pressures, that level of increase, in my mind, is simply too much and too fast,’’ he said.

The proposed average rates increase for 2026-27 across the district is 11.7%

Before consultation began, council assurance, finance and risk general manager Katherine Harbrow said the proposed average rates rise was consistent with what was forecast for year 3 of the council’s long-term plan.

‘‘It wasn’t easy to get to this point, with significant work required to reduce this figure from 19% and ensure it remained aligned with our original projection.

‘‘This was achieved through carefully considering every project planned for the 2026-27 year, extending loan repayments, using income from the transport improvement fund and finding operational savings.

‘‘We know that rates rises can be unsettling, it’s a tough proposition, especially when household budgets are tight,’’ she said.

Other submissions presented to council yesterday included urging council to commit to undertake and complete projects relating to sports and recreation and to bring a focus to art and culture in the district.

About 20 Upper Clutha residents made submissions at the Lake Wānaka Centre yesterday.

Day two of the submission hearings will be held in Queenstown today.

evie.sinclair@odt.co.nz