Mackenzie District Council Rates

Ratepayers in the Mackenzie District will soon be asked for feedback on the Council’s 10 year plan.

Councillors have adopted a draft budget for the next 10 years as part of the Long Term Plan process and this budget shows an average rates increase of five percent a year over the next 10 years. However the biggest increases will be in the next three years (see graph).

The draft budget predicts rates rises of between eight and 12 percent over the next three years, stabilising at lower percentages in the years that follow. The main reason for this is the need to catch up on road works in the next three years, combined with a reduction in funding from central government for roading. Once this work is done the costs of the road network and the rates required will stabilise.

The next step will be to hold a public consultation period when people will have a chance to comment on the issues facing the district and how they would like to see them addressed. Keeping rates at affordable levels is the biggest challenge.

“Mackenzie ratepayers currently pay some of the lowest rates in the country*,” says Mayor Claire Barlow. “However some of our essential services need to be upgraded and we must face up to the reality of these costs.

* (Source: the Ratepayers Report 2014, conducted by the Taxpayers Union and Fairfax Media. www.ratepayersreport.co.nz )

“The fact we are starting from very low rating levels increases the change needed to balance our books and also accentuates the percentage increase. All the councillors know that an 8.6 percent increase this year will be a serious concern for some people. Even with the rates rises, ratepayers in the Mackenzie District will generally be paying less in dollar terms than ratepayers in some of our neighbouring districts, but no one has taken this recommendation lightly.”

Out of New Zealand’s 72 councils, the Mackenzie District has one of the largest geographical areas (745,000 hectares) but also has the third lowest population and only 4,414 rateable properties. This means the costs of providing essential services like roads, water and sewerage are spread over a small population.

“The council only needs to increase its spending by $70,000 to incur a one percent rates rise. To give you an idea of what this means, it costs $70,000 to re-seal 1.7km of road.”

Mackenzie District Council also needs to spend millions of dollars in the coming years to replace or upgrade some of the district’s water, sewerage and stormwater structures. The question of how these essential services will be paid for is one that will be asked as part of the public consultation process. Council is considering a standardised rate for these services.

Another issue to be considered is whether the council should sell two blocks of forestry land to help pay for essential services like roads, water, sewerage and stormwater.

“Keeping essential services at a high standard across the district, while at the same time keeping rates affordable for every ratepayer, is the single biggest issue facing the district in the future,” the Mayor says.

“Soon we will be bringing out a Consultation Document that outlines the issues and calls for public submissions. I encourage everyone to get involved in the democratic process and have their say. There are some hard decisions to be made and we need your input.”

ENDS

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