Happy days as SWDC rates rise just 14.7 percent

By Ray Lilley

South Wairarapa District Council has decided to set the 2024-25 rates increase at 14.7 percent _ shearing 0.6 percent from its earlier proposal and more than 5.0  percent below last year’s record level increase of 19.8 percent. 

But wait, there’s more: a 20 percent increase in Greater Wellington regional rates.

And, within hours of its decision, SWDC faced an “error” when Wellington Water, in charge of water services, unveiled a $51 million blunder it had made in its Long Term Plan budget. 

That immediately added $200,000 of extra and unaccounted costs to next year’s SWDC Enhanced Annual Plan costs.   

Deputy Mayor Melissa Sadler-Futter, council representative to Wellington Water, said SWDC “will be looking to Wellington Water to make appropriate savings to our capital works programme to cover these costs _ to mitigate the financial risks to our ratepayers and community.”

There was no immediate indication what parts of the Wellington Water’s works programme in South Wairarapa would be affected by this requirement.

Wellington Water is a council-owned co-op charged with providing public water services for South Wairarapa, Upper and Lower Hutt and Wellington.

The co-op has commissioned an independent review of how the “$51 million” budgeting blunder  occurred, which Sadler-Futter described as the “latest” in a series of errors at Wellington Water. SWDC would seek to ensure “meaningful change and improvement” was implemented after the review. 

SWDC water services funding: “maintain the current level” was approved. 

A move to add an extra $1.0 million to the funding was lost. Staff said it would help replace one  kilometer of water pipe.

Water allocation: reduced to 250m3 for all users (was 350m3), with higher ($2.50 per cubic meter) charge above this.

Other fees and charges: 

Council rubbish bags to cost $4.90 each, up from $3.00;

Senior housing cost to rise 8 percent ($10.00 a week). CEO Janice Smith said the increase was “at the lower end. There is a balance to be met.” 

Councillor Colin Olds noted that as there is no government subsidy for local council-owned pensioner housing and council is not recovering its costs, “the council is subsidising that housing.”

Councillor Pip Maynard noted “we (council)  have a social obligation (and the charges) should not be a terrible burden on people who live in this housing.” Dog registration fees rise 5 percent, pound fees are unchanged.

Increases in building consent fees and charges, and in planning and resource management, ranged from a few dollars per item up to $650.00 (commercial building alterations greater than $500,000 12 hours processing, 8 inspections: $5,484.00 (was $4,832). 

Explaining the increases, council reported that: 

“Since the council’s current Long Term Plan was written in 2021, the economic environment we operate in has shifted significantly. The increase in rates forecast in the LTP for 2024- 25 was 10.97 percent. 

“However, the costs of services the council provides to the community have increased dramatically since then. The consultation document proposed a 15.3 percent total rates increase for the 2024-25 financial year. This considers high levels of inflation, interest, and insurance costs, along with core operational investment in roading and maintaining current levels of water investment.”

Reminder: The annual rates rise of 14.7 percent does not include the additional 20 percent which Greater Wellngton Regional Council will charge from July 1 for the coming year. 

Thus, a rates bill from both councils combined will rise for a $950,000 rural property from $3,280 in 2023-24 to $4090.00 in 2024-25 _ up $809.00 for the year.