Record rates rise for Westland

Westland mayor Helen Lash. Photo: supplied
Westland mayor Helen Lash. Photo: supplied
A record rates hike has been cemented for Westland.
Sombre councillors took less than five minutes to rubber-stamp an 18.6% rate increase at a special meeting on Monday without debate.

"No questions, no points of clarification?'’ Mayor Helen Lash asked to silence.

The final figure was trimmed slightly from an original 19.7% and she thanked staff who had to go back and "re-do, re-think and re-visit'’ budgets over recent months.

"You've been challenged left, right and centre. We knew we had a hard ask this year and I know there's no fat left in the system with what we've cut, and that comes back and impacts all departments, so ... we are very grateful that everybody has taken it on the chin.

"Next year we'll be in a different position and we'll be able to present something entirely different to the ratepayers of Westland.'’

It sets in stone one of Westland's - and the country's - highest rate increases. In comparison, Buller District Council has cut its forecast rate from 20% to 15%, while the Grey District Council is tracking towards an increase of 13.5%, to be signed-off tomorrow.

However, Westland's 18.6% increase is not the highest on the West Coast.

The Taxpayers Union yesterday slammed the West Coast Regional Council's proposed 27% increase, saying it was one of the steepest in New Zealand. 

Where Westland sits nationally among rate increases was still to be determined.

But union spokesman Sam Warren said any increase to rates above the level of inflation was "unacceptable'’.

"Due to either an inability, or unwillingness, to find savings within its own operations, councils continue to burden ratepayers within unreasonable hikes during a cost-of-living crisis.

"West Coast's excessive rate hikes are due to an increase in operational expenses, some areas being more avoidable than others. Households up and down New Zealand are tightening their belts and doing more with less, so why not councils as well?'’

Hokitika councillor Steven Gillett said previously the starting point for big rate increases was created by the previous council.

"There were proposed rates increases of 14%, 13% and 12% over the first three years of the LTP so cumulatively over 40%. In the last year of the previous council the increase was set at 6.7%.'’

Much of Westland's increase this year has been blamed on three waters funding. Last year a 16% increase was whittled down to under 1% by not collecting over $3 million in three waters depreciation for the year.

"If we had collected three waters depreciation in 2023, the rates increase would have been around 6% for this year.'’

Mrs Lash said the 16% affected the targeted three water rates only, and was only relevant to this year's rate strike - not future years.

"Overall, the general rate increase sits at 2.84%, which is less than the current CPI. It is the council's intention to ensure next year's rate strike sits at a more manageable level for all.'’

The long term plan, which was deferred this year for the now approved `enhanced annual plan', forecasts a 3.8% increase for 2025, moving to about 1% in 2026 - well below the 5% cap set in 2013.

The same year the Westland District Council delivered the highest rate strike in New Zealand at 12.6%, four times the average national increase at the time.

How Westland stacks up against other councils this year will be revealed in the Taxpayer Union's wrap-up, to be delivered after July 1.

- By Janna Sherman of the Hokitika Guardian

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