North Canterbury: How Much Will Rates Rise In 2025?

Thursday, 23 January 2025, 5:01 pm
Article: David Hill - Local Democracy Reporter

North Canterbury ratepayers can expect more rates rises, as local councils seek to deliver on their long term plans.

With deliberations beginning next week, the Waimakariri District Council has pledged to keep this year's average rates rise under five percent.

At this stage, Environment Canterbury (ECan) and the Kaikōura District Council could be looking at average rate rises of under 10 percent, while the Hurunui District Council forecast 14.49 percent in last year's long term plans.

Prime Minister Christopher Luxon has told councils to ''rein in the fantasies'' and focus on core business, in a bid to get rates down.

"Ratepayers expect local government to do the basics and to do the basics brilliantly," Luxon told councils at last year's local government conference in August.

"Pick up the rubbish. Fix the pipes. Fill in potholes. And more generally, maintain local assets quickly, carefully, and cost effectively."

ECan chairperson Craig Pauling said the council held several briefings late last year to begin preparing its draft annual plan.

"As we signalled in our Long-Term Plan, some of our planned work was dependent on receiving funding support from central government.

"Now that has been confirmed, we need to make some changes. The majority of this sits within our public transport core service."

By delaying some projects, the council is now proposing to spend $358.8 million in the 2025/26 financial year, with $214m coming from rate payers.

Pauling said this would result in an average rates increase of 9.9 percent, lower than the 15.5 percent signalled in the Long term Plan.

"This is not confirmed and the draft annual plan still needs to be adopted by council."

Consultation is expected to take place from late February to early April.

Waimakariri's deliberations begin on Tuesday, 28 January, and chief executive Jeff Millward said the council was committed to returning rates rises to under 5 percent, after last year's 9.39 percent rates hike.

But he said the council continued to face cost pressures, including rising insurance costs, inflation and government levies.

Waka Kotahi NZ Transport Agency's (NZTA) funding allocation also left the council's roading budget with a $13.5m shortfall over three years and the council is paying off its earthquake recovery loan, following the 2010 and 2011 quakes.

Changing government legislation and the unknown costs of establishing a new Three Waters model added to the uncertainty.

Consultation on the draft annual plan is scheduled in March, followed by hearings.

Kaikōura District Council chief executive Will Doughty said he expected to present a draft annual plan to councillors in April.

"Whether consultation is required is still to be determined, but we will do some form of engagement," Doughty said.

Annual plan consultation is only required if there are significant changes to what was signalled in the Long Term Plan.

Hurunui District Council chief executive Hamish Dobbie said the average rates rise may be lower than forecast, as the council rejigs its roading budget following its funding shortfall from NZTA.

The Hurunui district is a large rural community with around 13,000 residents, and has around 900km of unsealed roads and 600km of sealed roads.

The council has estimated it needs about $3m a year to maintain and upgrade its ageing network of 286 bridges.

The draft annual plan will be presented to the council in April, before going out for public consultation.

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

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