Regional rates rise pulled back in bid to soften the blow

Nicole Mathewson Reporter from The Press

By local democracy reporter Lois Williams:

West Coasters with mid-priced properties can expect to be paying between $400 to $500 plus GST in regional council general rates this year.

That is in addition to any targeted rates they may have to pay if their property is in one of the council’s 23 special rating areas that fund flood protection from rivers and the sea.

On Tuesday morning, The West Coast Regional Council approved a revised long-term plan (LTP) and set rates for the new financial year. The sign-off comes after a two-month delay while it waited for the new Westland valuations and the outcome of a round of special-rating-district meetings.

After initially projecting a whopping 27% increase in its total rate take to fund the work it consulted the community on for its 10-year LTP, the council reined in its requirements to a 12.6% increase in the first year.

It plans to fund the difference by borrowing to spread the cost over a longer period, in an effort to ease the pain for ratepayers.

It still aims to return a surplus in year four of the LTP.

Speaking before the meeting, the council’s risk and audit chairperson Frank Dooley said new valuations would affect individual ratepayers differently, as would the cost of proposed flood protection schemes.

“If you look at Westport, we’re looking at spending $10 million there in the near future but if you rate for that in one hit it would be horrendous, so we smooth that out by borrowing.”

According to Dooley, $1,813, 533 of the total rates take would be paid to the government as GST.


Per $100,000 in capital value, Buller ratepayers will pay $59.20; Grey ratepayers $64.75 and Westland ratepayers $52.67. There will also be an emergency management (Civil Defence) rate of $13.27, $3.59 to fund work on Tai o Poutini combined District Plan (TToP), and a uniform annual general charge of $179.32 - these are the same for all three districts.

For a property with a capital value of $300,000 that formula adds up to a bill of $407.50 plus GST for a Buller District ratepayer - an overall increase on 2023-24 of 6.51%; while a property worth $400,000 will pay $483.56 plus GST - an overall increase of 5.52%. Rates for Westport’s major flood protection scheme have been partially deferred until next year, pending the start of work on the project.

In the Grey District, the formula would see a $300,000 property paying $424.15 plus GST - an increase of 10.85%; and $505.72 plus GST for one worth $400,000 -an increase of 10.36%, plus the floodwall rate if eligible.

And in Westland, a $300,000 property will pay $387.91 plus GST - an increase of 1.34%; and $457 plus GST for a $400,000 property. The various flood protection rates in special rating districts such as Franz Josef and Whataroa are imposed in addition to that.

Dooley said the council was doing its best to keep a lid on rates and spread the cost of necessary capital works based on the inter generational equity principals.

His own property on the banks of Buller’s Orowaiti River with a CV of $675,000 would be paying $694.74 plus GST and a targeted rate for flood protection, he said.

*LDR is local body journalism co-funded by RNZ and NZ On Air.