Canterbury councils are cautiously optimistic about the Government’s newly announced council rates caps but will be keeping an eye on the legislation as it progresses.
The Government has announced that council rates increases are to be capped at four per cent, with the caps taking full effect from July 2029.
“For too long, ratepayers have been hit with steep and unexpected rates increases, adding pressure to household budgets at a time many New Zealanders are already feeling the squeeze,” Local Government Minister Simon Watts said.
Under the legislation, councils will be required to consider the target range of two to four percent while preparing long-term plans in July next year.
There will also be two types of exemptions, including one for exceptional circumstances, which Christchurch City Councillor Sam MacDonald believed was a positive.
“The earthquakes were an exceptional circumstance which would have required, you know, some changes,” he said.
MacDonald, who is the chairman of the council’s Finance and Performance Committee, believed that as a bigger organisation, the Christchurch City Council will be able to deal with the changes.
“I think as long as there's a degree of reasonableness with it, then it's not a bad thing for us at all to live within our means.”
Waimakariri District Mayor Dan Gordon was wary of the unique position his council was in as a growth area, as well as a need to establish how the framework will work practically.
“We will look carefully at the legislation as it progresses through Parliament and the Select Committee process and will be particularly interested in how the proposed exemptions and arrangements for growth councils with a strong record of prudent financial management work in practice.”
He said he supports predictability and affordability for ratepayers, and that Waimakariri has maintained some of the lowest rates increases across the country.
The Selwyn District is also rapidly expanding, and Mayor Lydia Gliddon said the council was building their 2027-2037 Long Term Plan from scratch.
“I think it's important for local communities to have a strong voice in the level of infrastructure and projects they want to see progressed by their councils and how they should be funded - whether through rates, user charges or debt,” she said.
In this Long-Term Plan, the council is planning to consult their communities about these kinds of trade-offs, which will become necessary after the implementation of a rates cap.
“It means as a council we will need to keep tightening our focus on core services, value for money and long-term affordability.
"That direction is not new for us; we have already been working hard to reduce projected rates increases and challenge business as usual.”
