Rates rise for Horowhenua residents less than expected

Veronica from Manakau

6 July, 2023

Rates increase of 8.87 percent for Horowhenua residents which includes a 7 percent general rate and 1.87 percent "growth" rate .

Horowhenua District Council group manager organisation performance Jacinta Straker said the growth rate of 1.87 percent is based on the estimated number of new builds (housing) and sub-division development expected to come on stream this year.

At the Council meeting on 28 June when the rate was set Mayor Bernie Wanden said the Council was adopting a budget that was "not balanced."

"We are starting the year in deficit which is responsible but not prudent," he said.

The proposed budget was estimated on a shift from rating on Land Values to Capital Values which did not proceed after overwhelming opposition by the community.

The majority of submitters said they were potentially facing rates increases of between 12 and 30 percent if general rating on Capital Value was introduced.

The Council's consultation document on proposed amendments to the 20 Year Long Term Plan indicated residents of Foxton, Shannon, Tokomaru, Waikawa Beach, Ohau and Waitarere Beach would have faced minimum rates increases of 18 percent, 15.4 percent, 11.86 percent, 14.29 percent, 13.34 percent and 10.27 respectively under Capital Value rating.

Yet despite this two organisations with a mandate to represent their communities of interest - Horowhenua District Ratepayer and Residents Association (HDRRA) and Horowhenua Greypower - made submissions in favour of Capital Value rating.

Long time HDRRA chair Christine Moriarty said in her submission HDRRA favoured rating on Capital Values because, "we believe this is the fairest option for the residents of Horowhenua."

"The present system disadvantaged urban properties because they carried a greater proportion of the annual rates burden," she said.

Horowhenua Greypower chair Terry Hemmingsen was also in favour of Capital Value even though he said in his submission, "there are major financial constraints being placed on our pensioners and others who are asset rich and very much cash poor."

Superannuitants comprise a quarter of the population in Horowhenua.

Horowhenua Greypower also gave a tick to Capital Value rating being introduced to support Library and Community Centres, Aquatics (swimming pool) and Representation and Governance.

During a verbal presentation on his submission Mr Hemmingsen said he "trusted" the Council to do the "right thing."

Ratepayers will receive their rates notice for the 2023-2024 financial year in August.

More on the changing face of Horowhenua coming up.

(Photos, from left: New builds in Levin, Horowhenua District Ratepayer and Residents Association (HDRRA) chair Christine Moriarty and Horowhenua Greypower chair Terry Hemmingsen)