Masterton Fares Best In Region For Rates Rises

Monday, 15 July 2024, 5:57 pm
Article: Emily Ireland - Local Democracy Reporter

Although no rates rise is ever welcomed, Masterton ratepayers have been dealt the smallest increase in the Wellington region.

At an average increase of 9.6 per cent this year, Masterton District Council has the eighth lowest increase in New Zealand, excluding unitary authorities and regional councils.

The data was collated by the New Zealand Taxpayer Union to allow ratepayers to track and compare how much their council was planning to hike rates this year.

Taxpayers’ Union Policy and Public Affairs Manager James Ross said the average district council rates increase was more than 14 per cent.

South Wairarapa sits roughly in the middle at number 32 with an average rates increase of 14.7 per cent.

Carterton, which is yet to set rates and sign off on its Long-Term Plan, had originally proposed a rates increase of 15.09 per cent, placing it at number 38.

However, changes to Carterton District Council’s Long-Term Plan during deliberations in May brought this figure down to 14.7 per cent.

More changes are expected before the council officially sets the rates.

Ross said he was concerned double-digit rises were “quickly becoming the norm” across New Zealand’s district councils.

“Until councils can start delivering value for the money they take from ratepayers, we should be seeing rates rises in line with inflation and no more,” he said.

“Households are having to tighten their belts, and councils need to be doing the same by trimming the back-office fat and canning gold-plated pet projects.”

New Zealand's consumers price index, a measure of inflation, increased 4 per cent in the 12 months to the March 2024 quarter, according to figures released by Stats NZ.

The next update on inflation is due this week.

However, when councils set their proposed rates increases earlier this year, Local Government New Zealand commissioned a report by one of the country’s leading economists, Brad Olsen, which illustrated the cost pressures councils were under.

The report found that over the past three years, costs had significantly gone up for local government.

The cost of building bridges had risen by 38 per cent, sewage systems were up 30 per cent, and roads and water supply systems rose by 27 per cent.

The report found that all councils were facing increasing costs for existing assets and services due to inflation, the cost of servicing debt, and increasing insurance costs and audit costs.

The lowest rates increase for district councils was Far North District Council [4.5 per cent], and the highest confirmed rates increase was Gore District Council [21.4 per cent].

Wellington City Council rates rose 16.9 per cent.

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

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