KCDC Sets Rate Rise At 2.6 Per cent

The Kāpiti Coast District Council has adopted its Annual Plan setting an average rates increase of 2.6 per cent for the year ahead, an average weekly increase per rates bill of $1.65.

Kapit Coast District Council HQ

As predicted, this is down from a 5.7 per cent increase for the 2020/21 financial year that Council was considering prior to the onset of COVID-19. 

The KCDC says Plan sets out the priorities and budget for the coming year, striking a balance between providing infrastructure and services and helping the community recover from COVID-19.

As well as rates, Council is funding the next year’s work programme by less capital spending, reduced debt repayment — and by removing inflation from operating budgets.

Kāpiti Mayor K Gurunathan:

“We’ve lowered the rates increase as much as possible without putting important projects and services at risk,” Mr Gurunathan says.

Mayor K Gurunathan — ‘we can’t go any lower’

“To take the rates any lower would seriously impact the Council’s ability to deliver, make future years even more difficult, and limit our ability to help in our economic recovery from COVID-19.

“We also recognise that some households and businesses may struggle with their rate payments, so through the annual plan we have increased the amount of rates relief available to ratepayers who are being impacted financially by COVID-19.”

For more information on the  2020/21 Annual Plan visit https://www.kapiticoast.govt.nz/your-council/planning/annual-and-long-term-plans/proposed-annual-plan-202021/.

Good on KCDC for reducing rates in the current times. Really they had no option not to.
But beware the average figure quoted which is misleading; more than likely some areas will have higher rates increases
However it should be noted that this has been achieved mainly by delaying expenditure not curtailing it.
Never ever has the main portion of rates expenditure on staff and overheads been looked at.
Given a slow down in expenditure and the delay of projects one might have thought less staff and overheads might be required not more.
Classic really, its like multinationals do, cut at the periphery (usually third world countries) not the core central organisation. Its called patch protection.
Again one might have thought with at least a couple of ‘business people’ as councillors Council might have approached this differently. I am sure if we asked the business owning councillors what they would do in a recession in their own businesses then the response would be a tightening of the belt, reduction in staff and overheads, but no somewhere along the line there is a disconnect, just because it is rates money, a never ending money bag.
Here with the Organisational Review process was a great opportunity to look at the overall structure of the Council organisation and make a serious attempt to improve the efficiency and delivery of services with less staff and overheads.
But no, we get a seriously underwhelming review, that is so inane as to be virtually meaningless, and certainly does not represent what I consider as KCDC.
Clearly the reviewers were hobbled by the terms of reference that restricted the scope of the review.
One must also wonder why the Mayor decided to engage Simpson and Grierson to review the review to ensure there were no Health and Safety issues that might arise for the CEO. It was clear in the terms of reference that no one person was to be singled out. One wonders what the cost of the review of the review. Are there not two in-house legal experts who are very well paid already, rather than deploy them as mere administrative assistants to obtain a consultant legal opinion?

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