Rates Double Over Decade

Tuesday, 23 July 2024, 8:03 pm
Article: Emily Ireland - Local Democracy Reporter

South Wairarapa’s rates have more than doubled, on average, over the past 10 years.

The ratepayers in the southern district have borne the brunt of a cumulative increase of 138% since 2015, compared to about 58% in Masterton, and 70% in Carterton.

In the same time, the consumer price index has risen about 30% and wages have risen 47% nationally.

A Local Democracy Reporting analysis of rates rises since 2015 showed the lowest increases were seen in 2020 when Wairarapa’s councils tried to lessen the blow to ratepayers amid economic uncertainty in the global pandemic.

Rates increases that year sat around the 2% mark for each Wairarapa council.

Then came the controversial 29% increase for South Wairarapa in 2021, which set the district on a trajectory resulting in a cumulative rates rise of almost 90% since then to today.

This is almost double in just four years.

Excluding this year’s rise, rates went up a cumulative 64%, far greater than the 19% cumulative increase in local government operating costs for the same three-year period, as estimated by Infometrics.

Masterton and Carterton on the other hand have had a cumulative rise of 19% and 18% respectively for this time.

Ratepayers across Masterton and South Wairarapa will have recently received their rates bill for this quarter following the Long-Term Plan sign-off in Masterton and Enhanced Annual Plan sign-off in South Wairarapa.

But Carterton ratepayers will need to wait until their council adopts its Long-Term Plan in September after dozens of issues were signalled by the Office of the Auditor-General.

Because of the delay, rates invoices would likely offer three instalment dates instead of four.

A council spokesperson said this would likely impact how ratepayers budgeted for these payments.

Current weekly, fortnightly, and monthly direct debit arrangements remained in place and would continue as normal.

They would be adjusted once new rates invoices are issued and any payments made prior to this would be held in credit against relevant rates accounts.

Carterton District Council meet on Wednesday at 9am for a workshop to discuss the Long-Term Plan.

Payment dates would be finalised at a council meeting on July 31.

Average residential rates per district 2022/23*
Carterton: $3938.81
South Wairarapa: $3474.58
Masterton: $2755.22
* From the 2023 Taxpayers Union Ratepayer Report

Figures used in this LDR analysis were the average rates increase as indicated by councils in their annual plans.

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

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