Rates

During the 2002 election campaign I stated that I was opposed to “any further increase in rates beyond the rate of inflation”.

I was, and my vote during the 2003 Annual Plan process reflected that. This is a matter of public record.

However, there have been changes at the national government level which have serious implications for local government. Central government is thrusting more and more responsibility onto councils and while they are doing so they are not providing funding to local authorities for the new work we are now legally obliged to undertake.

A recent survey by Federated Farmers states that rates are growing at 16.8 per cent for metropolitan councils, 9.6 per cent for provincial and rural councils, and at 18.2 per cent for regional councils.

As central government devolves more and more of its responsibilities onto local government the implications for rates gets worse. There are costs of compliance with the new legislation and unfortunately, these are extra costs that council is just stuck with.

Since the last Annual Plan, Palmerston North City Council has been faced with extra responsibilities under a number of changes to legislation. These include amongst them the Local Government Act 2002, Local Government (Rating) Act 2002, the Prostitution Reform Act, Dog Control Act, changes to the Building Act, new financial reporting requirements, liquor and gaming regulations.

Given these statutory changes, it would be irresponsible of me to stick to my “no increase” stance. I am a ratepayer in a single-income household and I worry as much as anyone about how I am to pay increased rating charges. However, the extra costs imposed by central government are a fact of life. Local government right throughout New Zealand is concerned about this issue and moves are afoot to investigate viable alternatives to the property-based rating system. There must be a fairer way of distributing the costs and I am among several councillors who have called for a review in Palmerston North. I will report back via this website should there be any developments.

This year I will again be looking closely at the income and expenditure and I have requested that the proposed budget spreadsheets be provided in electronic format to all councillors so that we may each look carefully at which items we feel could be cut back on/brought forward/postponed/dropped. Having the actual files means we can see the effects of such changes and makes it easier to work through the hundreds of items to reach an acceptable level of expenditure.

2004 is an important year in that it is the first year of the LTCCP (Long Term Council Community Plan). It is also the first year in which we are going to feel the full force of the legislative changes, and their associated costs. I will be doing everything I can to minimize the rate increase, but sadly, there will be one. I cannot take a stand for rates “no more than inflation” as this is just not an option, thanks to central government, but I can promise you I will do my very best for you.

UPDATE - July, 2004

After months of workshops, meetings and debates, the Palmerston North City Council set the rates at an increase of 5.4%.

An increase in rates was inevitable, but I firmly believe that it need not have been as high as 5.4%. I voted against this increase and had my name recorded as having done so.

NOTE: Council is committed to a comprehensive review of the current rating system in the 2004/05 year. Preliminary work has already started on this review and it has been budgeted for in the LTCCP (see Operating Programme 542.01 Rates Review).