Ōtaki is to have an average rates rise of 13.2 percent under Kāpiti Coast District Council’s proposed Long-term Plan.
The proposed Ōtaki rates rise is 67 percent greater than the next highest of 7.9 percent in Paraparaumu/Raumati. Paekākāriki would see a 7.7 percent rise and Waikanae 3.9 percent.
KCDC group manager corporate services Mark de Haast says the increases vary for different properties across the district.
“Variations are due to differences in property type, value and location, the impacts of last year’s revaluation, and proposed changes to our rating system,” he says. “Ōtaki’s rates are set to increase by more than others this year largely because Ōtaki is experiencing rapid growth, and new rating valuations have reflected this. If your property value has increased substantially more than the average, then your rates increase will be higher than the average.”
As the figures are averages, some properties would have lower rises, others higher (some at least as high as 17 percent in Ōtaki).
The council is currently seeking feedback on the proposed Long-term Plan (LTP). Pages 84-86 of the consultation document, Securing our Future, lays out the impact of the proposed plan on rates and includes a table that shows the proposed rates increase impacts for median property values across the district.
The proposed average rates increase of 7.8 percent for the first year of the plan (2021-22) is directly related to the council’s proposed increased spending and rising material prices. Depreciation and inflation account for 6.2 percent of the proposed rates increase.
Mark de Haast says the council’s view is that it would prefer to have a lower rates increase, the district’s key need is for investment to help stimulate the local economy and prepare for the future.
“We are also facing rising costs on all fronts – from the flow-on effects from the Covid-19 pandemic to material prices,” he says. “The council have no choice but to pass these costs on.”
However, the council is concerned how the proposed rates increases would affect some people, so it’s also proposing to increase the rates remission fund by $50,000 a year and changes to the policy that would widen the eligibility criteria.
The draft LTP lays out the council’s work plan for the next 20 years. It details the planned activities, services and projects, how much things are likely to cost and how council plans to pay for them.
Mayor K Gurunathan say Kāpiti has a lot to consider: from managing growth, the Covid-19 response and recovery, and housing, through to responding to climate change.
“We’re dealing with some complex issues, so we need a bold plan to secure our future,” he says.
“We’re proposing an ambitious Capital Works programme to deliver projects that support recovery and provide the infrastructure renewals and upgrades we need to maintain core services and prepare for our district’s expected growth.”
Consultation on the LTP runs until May 10.