Mayor hopeful of achieving rates cap

Gore Mayor Ben Bell. Photo: Sandy Eggleston/ Allied Press
Gore Mayor Ben Bell. Photo: Sandy Eggleston/ Allied Press

Local government rates will be capped at 4% to help "fed-up" ratepayers — but is this the fix to the affordability issues?

The announcement was made earlier this month by Local Government Minister Simon Watts, with plans for it to be implemented by 2027.

Rates have been a controversial issue in the Gore district, stemming from a 21.4% increase in 2024 causing significant pushback from the community.

The most recent rise of 8.8% was achieved through debt funding and cutbacks but is still 4.4% over the potential limit — but Mayor Ben Bell said he was not too stressed.

"Personally, and I say this gingerly because we still have to do the numbers, I think we’ll be OK," he said.

Mr Bell said there was already significant work to cut down on the rates increases, and could see with a bit of clever accounting the ability to do so.

"We’ve got an 11% this year, an 8% the next, and then the rest of the long-term plan the rises are sixes and fives.

"You take the [Three] Waters out of it, you probably get under the four relatively comfortably," he said.

However, Mr Bell expressed concern over roading and solid waste costs, which will be capped expenditures.

"Nobody wants us to stop gravelling their roads, to decommission their bridges, to stop picking up their rubbish.

"Ultimately we have a legislative requirement to do that, so I’m a bit miffed as to why those are being capped. That’s something I hope to advocate for," he said.

Mr Bell acknowledged councils had a large increase in responsibilities pushed by central government while also being chided for financial insecurity and said his optimism was cautious.

"When I say we should be OK, this is in the current conditions. We have to figure out how on earth we need to take on a regional council, to design a regional spatial plan to meet the RMA.

"How to transition our waters to the CCO, all these complications. It starts to get crazy.

"It’s a lot of pressure and a lot of time, but time is money at the end of the day, and it’s money coming out of ratepayer pockets," he said.

gerrit.doppenberg@alliedmedia.co.nz