Biggest rate hike in many generations coming

• Published date: 12 April 2024
• Author: Paul Williams
• Publication title: Horowhenua Chronicle

Horowhenua District Council is going to great lengths to front all sectors of the community - young and old - as it grapples with increasing debt and ballooning costs

Every three years, council locks in a Long Term Plan, setting an annual rate rise and prioritising spending, and this time around there is a heightened sense of penny counting with rates set to rise by a record 17.4 percent, at least.

To maintain the current level of service and projected spending would require a 23.6 percent increase.

With a debt level now sitting at $180 million and rising, HDC is reviewing expenditure line-by-line and is on a district-wide consultation drive to find a balance between “need” and “want” before signing off on a 20-year LTP.

Elected members and staff have fronted 27 different public meetings with community groups ranging from Grey Power to school students. Seven more events are planned before April 15.

Horowhenua Mayor Bernie Wanden said it was vital ratepayers and residents were aware of the challenges the district was facing and had every chance to be involved in decision making.

There was no shying away from the fact all councils nationwide were facing record rate increases to maintain existing levels of service, and Horowhenua was no exception.

“Challenging times call for challenging choices,” he said.

“Times are tough. The cost of living continues to rise, and like many households, council has some tough decisions to make.”

Wanden said in the three years since the LTP was last visited, council costs had risen by 30 percent.

“Council is not immune to cost increases and the challenges posed by inflation, interest rates, depreciation and insurance are having a massive impact on our fixed costs, which...