Kāwhia residents will be helping to pay for the Aotea seawall under the proposed plan
Three things head the consultation list Ōtorohanga ratepayers are being asked to consult on in the Long Term Plan open for consultation from today. First, the council wants public approval to reduce the amount of rates set aside for funding depreciation on assets for the next three years. If approved by ratepayers, it will result in savings of 7.4 per cent in the average rates requirement and the council depreciation fund will be reduced by between $2 and $3 million by 2027. The decision will not impact upon the council’s level of service. Second, a council plan to buy a van for engagement with outlying communities is also being reconsidered. Continuing with the current enhanced community connections approach will save ratepayers the estimated $120,000 cost of the van, plus $33,000 annual running costs – which would add 0.23 per cent to the rates for the life of the van. This decision will also not impact upon the council debt or level of service. The district council also wants to change the way Kāwhia and Aotea seawalls are paid for. Instead of property owners in Kāwhia and Aotea paying separately for the upkeep of their seawalls, the council wants to apply a single targeted rate for all three walls across both communities. Not only will this change make the seawalls’ costs clearer, it will also share the rates burden across a greater number of ratepayers, and reduce the impact on individual properties in Aotea. The council argues that maintaining the attractiveness and desirability of public and private property in both harbours has benefits for the entire area and not just the individual communities. Protecting where people live helps to keep communities strong and together. And well-maintained seawalls provide crucial protection against coastal erosion and flooding, preserving the natural environment. The walls also protect two of the district’s most notable trees – Te Papa o Karewa and Tangi te Korowhiti. By investing in the upkeep of these walls, the communities of Kāwhia and Aotea show their commitment to safeguarding the coast for future generations. The cut backs are because the council is looking at rates increases of 12.90 per cent this year for Ōtorohanga residents, 16.70 per cent for Kāwhia and Aotea residents, and 7.20 per cent for rural residents not connected to water or sewerage. After the early peak the rates increase over the ten year life of the plan is 4.60 per cent for Ōtorohanga, and 4.40 per cent for Kāwhia/Aotea and rural. “When we started considering costs in October 2023 to prepare this Long Term Plan process, the overall rates requirement started at 18 per cent – pretty much in the mid-range of the other Waikato councils who are also experiencing the same cost pressures we are,” Mayor Max Baxter said. “This 18 per cent was not to do anything new – instead this figure was simply to keep pace with increased costs.” Some of which he said had inflated some costs 30-50 per cent or more since the 2021 Long Term Plan. Proposed increases to rates over the next three years are a result of a combination of increased costs, less construction activity, changes in government policies, and building relationships and addressing climate change. Even so, the council is claiming a 9.96 per cent overall rates increase for next year, which is 3.91 per cent on top of last year’s increase. Uncertainties include the future three waters regime, Government changes around roading and the Resource Management Act and changing weather patterns which will have an impact on the council plans, maintains and builds things. Consultation is until April 29. Submissions will be heard during the week of May 20 with the council deliberating on the submissions May 24. Adoption is expected June 25.
