Urban rates in South Wairarapa likely will rise 8 – 12 percent for the 2025 – 2026 year – while average farm properties could see rates drop by 10 percent or more, SWDC’s initial figures revealed last month.
After balancing out the rises and falls, the district’s ratepayers likely will see the average rate rise total some 4.3 percent, based on council figures. Last year the average increase was 14.7 percent.
Why the rises and falls between urban and rural? Council is suggesting a new way of distributing the rates burden or, as a council document said, “slice the pie.”
If you haven’t seen/read the detailed Long Term Plan document’s 84-page summary, a brief of its primary contents:
A: Slicing the rates pie:
1. Adjust the uniform rates charges level from 21% to 28% of total rates _ that’s made up from the uniform annual general charge, roading uniform charge, refuse and recycling charges.
Result? Eases the rates burden for lower value properties. Preferred by council, which said it: “is trying to take a more balanced and equal approach.”
1 (a). OR: maintain the uniform charges at 21% of total rates. Biggest impact is on higher value rate-paying properties. Not preferred.
2. Town-adjacent rate-payers (within 10 km of the three main town centres) pay a higher share for funding town services and facilities like – community buildings, libraries, parks, pools, public toilets, animal control, resource planning.
Result? Council proposes a “targeted rate” (District Services Rate) for those living closer to main towns. Those living more rurally (plus-10 km from town) said they benefit less from, and use fewer of, the town-based facilities. Preferred by council as it will raise rates for town-adjacent dwellers.
2 (a) OR: Continue as at present, where ALL ratepayers, including remote dwellers, pay the same as now. Not preferred. Allows council greater flexibility for future funding.
3. Re-definition of SUIP (Separately Used or Inhabited Parts) definition – for a second or more usable dwellings on a property (SUIP). This rating category recognises the extra use of council services like water, sewerage, roading etc. It proposes to exclude dependent family dwellings, hobby studios, home gyms which are not businesses – and worker accommodation. Preferred as “easier to understand” and replaces “apply for remissions” policy.
3 (a) OR: Retain current remissions policy.
Not preferred.
Result? The new definition is a proposed “catch-all,” and removes what was the “Remissions Policy” of exemptions. Preferred by council as “a clearer definition” of SUIP.
4. Remove the refuse and recycling collection charge on each SUIP – instead applying it to the rating unit (the overall property) after ratepayer feedback said the SUIP does not double the rubbish but they pay twice. Preferred.
4 (a) OR: Continue with extra/separate charge for each SUIP. Not preferred.
Recommendation is for an extra charge for extra rubbish bins and continue the extra charge for
rubbish bags.
B. Pipes, races and what goes through them: water costs have risen from $2.8 million in the past three years to reach $5.8 million in 2024-25.
Four options are costed for the coming year:
1. A budget of $6.05 million for current operations and some high priority repairs/upgrades only – including meeting key standards and operating costs, limited maintenance to keep the system running, covering Wellington Water costs, overheads, some limited forward planning. Preferred.
Result? No allowance for contingencies, risk of service failures, stops progress on Featherston storm-water plan.
2. Same as Option 1 above but with $500,000 emergency fund for “unexpected events.” High risk.
3. Option 3 has same base as two earlier, but with more planned maintenance, planning for upgrades to water quality, storm water flood hazard mapping, increased budget for unplanned repairs and for planned maintenance work.
This option increases 2024-25 budget by $1.27 million to total $7.32 m. High budget, low risk.
4. The highest budget, low risk proposal would see the water budget rise to $8.97 million for the year – for more maintenance and future planning of the system. That would be an increase of $3.17 million on the current year (24-25) budget allocation.
Result: Water supplies would meet all regulations, pay for investigations to improve drinking water quality, reduce flood risks, develop plans for new dam and reservoirs, address district-wide water losses, improve water pump stations.
Result: a rates increase of 15.1 percent.
C. Roading priorities for the district: NZTA/Waka Kotahi has reduced its road works subsidies to SWDC by $5.3 million for the next three years.
The two options proposed are:
1. All low cost low risk works to be completed over the next two years to continue what council calls “work crucial to our rapidly changing environment,” by enhancing infrastructure, fostering the economy, protecting the environment, and supporting climate change adaptation.
Result? Funding is already included in the rates modelling. (A further funding application has been made). Preferred.
2. OR: SWDC funds 49 percent of the roading improvements programme – its historic level of funding. The other 51 percent came from NZTA/Waka Kotahi.
Council warns failing to invest more than half the annual amount would lead to road safety, resilience and protection being affected, with escalating costs of recovery and repairs.
A backlog of deferred work would develop, meaning reduced maintenance, deterioration and lower roading network resilience. Not preferred.
