A last-ditch effort to keep rates at 3% has failed in Tasman, with ratepayers facing a 9.9% increase while neighbouring Nelson adopts a 4.7% rise.
Both councils adopted their annual plans on Thursday morning, which enables them to strike the rates for the following financial year.
Tasman’s ratepayers will be seeing an average 9.9% increase after the district council followed through on the proposal it put out for consultation, which is higher than the 5.2% signalled in its 10-year plan.
Before the figure was adopted, councillor Mark Greening called for a 3% rates increase instead.
He has previously suggested taking on debt to fund the difference during the coming financial year.
The council could then significantly slash costs as it develops its plan for the coming decade next year to deliver greater long-term savings and debt reduction.
“The rate rise is driven by a number of factors, but one of them is an inability to reduce costs,” he said.
“We can’t wait another year before we get to cost reductions. They need to start now.”
Alongside Mark, councillors Mark Hume, Dean McNamara, Paul Morgan, Timo Neubauer, and Dave Woods voted against the 9.9 figure due to council spending and community affordability concerns.
Paul said the council needed to “work hard” to get rates down to 5%.
“We haven’t got any ongoing credibility with the community if we can't demonstrate we’re on that trajectory.”
Timo added that using debt on operating expenses, as the council was doing to keep the increase to 9.9% instead of 11.4, was a “red line” for him.
However, the nine other elected members voted in favour of the 9.9% increase, and so Mark’s 3% proposal was never put to the vote.
Mayor Tim King said there was an “entire programme” of figures and assumptions that informed the rates increase, and so changing the number did not end the process of establishing a rate.
Staff also raised concerns about reworking its annual plan to reflect a 3% figure before the rates legally had to be set by 30 June.
Reflecting on the 9.9% increase, Tim said that he, like all other elected members and residents, was not happy with the proposal put forward.
“But, on balance, I think it does reflect the conversations that we have been undertaking.”
Deputy mayor Brent Maru highlighted that the council had got below 9.9% but had ultimately rejected that lower figure so it could reduce how much debt was being used to fund roading maintenance.
The council faced a constant “dilemma” between the half of residents who wanted more services and keeping rates affordable, he added.
Councillor Jo Ellis described the process as “infinitely frustrating” and councillor Trindi Walker acknowledged that some would paint her with “a target”, but they voted for the plan and rates increase, noting the legal risk that faced the council if it did not adopt an annual plan.
Of the 9.9%, 5% was for rising three waters costs, 2.3% was for the recovery of last winter’s floods, and 2.6% was for the rest of council business.
While Tasman’s elected members were generally unhappy about their rates increase, the mood was starkly different in Nelson.
The city has adopted an average 4.7% rates increase – the first time ever that Nelson’s rates increase for the third year of its 10-year long-term plan has been in line with the plan’s forecast.
Some councillors raised specific concerns with the annual plan, like Kahu Paki Paki’s discomfort about the council incurring interest costs on the debt it will incur for its contribution towards the new surf lifesaving clubrooms, and Aaron Stallard’s enquiries around why certain proposals from councillors weren’t considered for inclusion in the plan.
But generally, elected members were pleased with the “prudent” rates increase.
Mayor Nick Smith acknowledged the current volatility of the market and cost-of-living challenges for residents.
“It is a very significant and substantive achievement for us, today, to be looking at a 4.7% rates increase.”
It was important to strike the “difficult balance” between maintaining and improving infrastructure and keeping rates low, he added.
Nick also highlighted the level of public and private investment and the level of construction activity in the city, and was convinced better times were coming.
“It is hard going, but I am very confident that we are seeing the light at the end of the tunnel.”
Councillor Matty Anderson was impressed rates were kept to 4.7% , but he had concerns that cycling and climate projects might get lost amid cost constraints.
Councillor Tim Skinner credited previous councils for maintaining infrastructure to leave today’s city in a good position and urged the current council to continue that work instead of being caught up in “ideological absurdities”.
The new rates will take effect from 1 July.
Mayor Nick and Tasman councillor Jo Ellis urged residents who were struggling with their rates bills to get in contact with their council to explore payment plans or rates rebates.
