West Coast ratepayers face 27% rates increase

Nicole Mathewson Reporter from The Press

By local democracy reporter Brendon McMahon:

The West Coast Regional Council will on Tuesday (June 25) move to adopt what is projected to be a 27% general rates rise under its 2024-34 long-term plan (LTP) - one of the biggest rises compared to other councils around the country.

The increase is based on a 10.5% increase in the council's operating expenditure from $22.8m in the current financial year to $25.2m in 2024-25.

Under council's 2024-34 LTP consultation document the "main drivers" of the proposed rates take increase were:

* Rebuilding council's corporate service functions and to implement new IT systems,
* Reviewing council's overarching regional plans,
* Progressing the 'one district' Te Tai o Poutini Plan,
* Construction of the Westport Flood Protection Project.

The LTP is council's key planning document for the next 10 years.

Specifically, it outlines a work programme and the financial implications in detail for the next three years.

The remaining seven years broadly outline the council's priorities.

The council in April presented to ratepayers its "preferred option" of a 27% general rates increase in year one.

This was based on borrowing to "smooth rates increases" to subsidise the budget demand.

The second option was for a 44% rates increase where ratepayers would bear the full cost.

The LTP anticipates a 12% rates increase in 2025-26, then rates increases by "no more" than 7.5% per year for the life of the plan.

However, aside from general rates, ratepayers in each of the 23 special rating districts - which look after individual flood protection assets across the 650km-long region - will also be seeing variable annual increases in the special rates they pay individually.

The council began LTP deliberations in April 2023 in meetings with staff and consultants in nearly a dozen closed door workshops.

After the council called for submissions in April, it received just 25 voices of interest on the plan's priorities.

Of those, six were directly heard during a public hearing on May 21.

The two key issues identified in the LTP draft were "balancing the budget" and funding the Predatorfree Te Kinga programme at Lake Brunner.

The council also sought specific feedback on other areas.

They included its financial and infrastructure strategies and the transfer of major flood protection assets from district council ownership.

The two assets for transfer are the Greymouth Floodwall and the controversial Havill Wall at Franz Josef.

Following the May 21 submissions hearing, council agreed to go with the preferred 27% rates increase option with borrowing.

It also decided in principle to fund Predator Free Te Kinga beyond 2025-26 - when the Government funding runs out.

This will average about $1 per ratepayer but council will also now investigate other funding models including a trust.

Prior to the May hearing, the council received a qualified opinion from the Office of the Auditor General on the LTP consultation document around the risk of not incorporating climate change.

The council took the decision on May 21 to acknowledge that.

A report for the council on Tuesday notes uncertain economic times as it moves to invest in "several large capital works" in the next few years.

These include the $22.9m Westport flood scheme, improvements to the existing Greymouth Floodwall, further flood protection for Hokitika, and the ongoing Waiho River flood scheme at Franz Josef.

The council's special meeting agenda notes its ongoing exposure to a range of "unavoidable cost pressures" which mostly are funded by rates.

These included "shifting of costs and responsibilities" from central government to local government including proposed environmental law changes.