Rates Rip Off ?

A Matariki present from KCDC Mayor K Gurunathan?

Matariki rises — and Kapiti rates do likewise under new Mayor

By Local Govt. reporter Jeremy Smith

Here’s a  coincidence: Matariki the beginning of the traditional Maori New Year is the same week our new, and higher, rates have been formalised.

KCDC rates, under Mayor Gurunathan’s “first budget”, are up an average of 5.9 per cent for the coming 12 months — that’s twice the rate of inflation.

( The Treasury reports that the June year annual average real GDP growth is forecast to lift from 2.9% in 2017 to 3.2% next year)

Regional council rates for Kapiti will go up an average $22 which is $394 in the 2017/18  year for a property assessed at $389,000.

Gaylor’s explanation

Penny Gaylor, Regional Cr — she’s not hiding her light behind the bush

Penny Gaylor, Kapiti’s Greater Wellington Regional Councillor, told Kapiti councillors this week that much of this increase was to cover capital spending on

items like the Matangi electric trains, something of direct interest to Kapiti people.

The KCDC HQ — where your money is spent.

The council’s final decision on spending was made two weeks before Thursday’s sign-off  where councillors also approved a one-off  increase  of $75,000 towards the fit-out of the Youth Development Centre.

This brings the capital contribution towards the centre to $325,000 in the coming year but it does not contribute to the rise in rates.

So what will people pay?

Here are some indicator figures:

An Otaki property with a capital value of $245,000 faces a 5.4 rates rise. In money terms that’s $122 or an extra $2.34 weekly.

In Waikanae a property valued at $440,000 capital value will pay $2976  which is an extra $172 in the year or $3.31 weekly.

A Paraparaumu/ Raumati property valued at $455,000 will pay $2,914, an extra $167 or $3.21week.  
Both Waikanae and Paraparaumu rates go up 6.1 percent but the median valuations for the two areas are slightly different: Waikanae land values are slightly higher and capital values slightly lower.

Paekakariki rate payers face a seven per cent rise. On a capital valuation of $415,000 the rates will be $2,801, up $183 or $3.52 a week.

8 per cent rise for rural ratepayers!

And Kapiti rural ratepayers face a 8.1 rates hike. On a capital valuation of $613,000 the rates will be $1,623, up $122, or $2.35 a week.

The report to councillors notes that more than three quarters of KCDC council income is from rates which is higher than many similar-sized councils. Neighbouring Porirua, with a comparable population, relies on rates for only two-thirds of its income. Porirua rates are up by 6.4 percent.

And Upper Hutt with a population of just 40,000 gets  less than 60 per cent of council income from rates.

And as a number of submitters to the annual plan have noted over the years Kapiti does not impose a specific business rate.