Carterton District Council has adopted its 2024-2034 Long-Term Plan [LTP] and rates resolution for the 2024/25 financial year, focusing on resilience and economic sustainability.
The initial adoption date for the LTP was 26 June 2024, however this was delayed due to an extended audit process. The additional review resulted in reductions in depreciation expenses, which required a revalidation of the Plan by Audit New Zealand.
In turn, this pushed out the setting of rates and led to Council opting to amend the usual quarterly payment schedule to three equal instalment dates, with first invoices being issued in early October.
The revised LTP forecasts an average rates increase for the first year of 11.4%, down from the initial 15.6% proposed during public consultations.
Further out the forecast average rate increases are 13% for Year 2 [2025/26], 5.8% in Year 3, and an average increase of 4.9% across the entire ten years of the LTP.
These figures exclude the rates from Greater Wellington Regional Council.
Mayor Ron Mark expressed his gratitude to the community for their input throughout the extended consultation process, stating:
“We received quality public submissions and participation, which informed our decision-making and reinforced that there are many external forces at play presenting challenges to our community. Carterton will be stronger for the conversation. I want to thank everyone who has taken part to help guide our decisions and our District’s future for the next 10 years.
“We need to continue to provide adequate levels of service to our community, upgrading infrastructure to ensure reliability and longevity and fulfil our requirements to deliver on our community outcomes. Carterton must be resilient, agile, and responsive, remaining close to the community we serve.
“Council recognised the need to balance affordability for ratepayers with the requirement to invest in essential infrastructure and services. We are never comfortable with further rates increases. However, the extended process has highlighted the requirements on Council from Central and Regional Government, the inflationary pressures Council face on the goods it needs to maintain and future-proof our assets.”
The LTP also sees the introduction of an Economic Development targeted rate, which is designed to support Carterton’s commercial and industrial sectors, driving economic growth, and ensuring that Carterton remains a vibrant and attractive hub for business and tourism.
Notably, the targeted rate is aimed at bolstering the District’s economic growth, supporting local businesses, and aiding recovery post-COVID-19.
The rate will be funded through a combination of public and private sources, with 50% of the funds coming from the targeted rate applied to commercial and industrial properties. The remaining funds will be sourced through grants and the general rate. This initiative aligns with Council’s ongoing commitment to the Wairarapa Economic Development Strategy, a partnership with regional stakeholders aimed at revitalising the local economy and enhancing infrastructure in the aftermath of the pandemic.
The LTP also sees increases in excess water charges reflecting the increased costs of providing water, wastewater and stormwater services, and passing through increased Masterton District Council charges for water supply in the Waingawa Industrial Area.
Geoff Hamilton, Chief Executive of Carterton District Council, said the Plan included increased investment in core services, roading, wastewater, water supply, waste management, and recycling.
“Facing changes in our climate, communities, funding and Central Government direction, it is important that Council is able to change with the times, adapt, respond to emergencies, take the hard knocks, get up again and continue to deliver business-as-usual services.
“We need to be resilient.
“While there is a lot to be proud of for the future of our District and our community, there are no winners here. Our investment in core services are less than what we would like and in some cases will be less than our community wishes. We have to make trade off and this plan is a melting pot of considered compromises.
“Like our community, we have also seen significant increases in insurance, energy, and interest costs. We are all feeling the pain of the cost of living crisis and Council is no exception.”
The new rates, including the economic development and three waters targeted rates, will come into effect on 1 October.
Council also adopted the Rates Remission and Postponement Policy at the meeting.
Following the delay, Council alerted ratepayers to the new instalment schedule and continue to offer help managing the financial transition, with many ratepayers choosing to pay in advance to keep their rates bill manageable.
The first rates instalment is due 20 November 2024.
A copy of the LTP will be made available within one month of adoption on this website. A draft is available from the meeting agenda at https://carterton.infocouncil.biz/Open/2024/09/CO_20240918_AGN_3283_AT_WEB.htm.
What are the new instalment dates?
Rates instalment dates for the 2024/25 year each cover a period of four months:
- Instalment One: 1 July to 31 October, invoice issued October, due 20 November.
- Instalment Two: 1 November to 28 February, invoice issued January, due 20 February.
- Instalment Three: 1 March to 30 June, invoice issued April, due 20 May.
Note: These are the same dates ratepayers would usually make rates instalments 2, 3 and 4. Those direct debits usually made quarterly will now take place on these instalment dates.
Do ratepayers need to do anything right now?
While ratepayers do not need to do anything, they are welcome to make payments in advance of receiving their rates invoices. These will be held in credit against rates accounts. Payments will continue for those with direct debit arrangements. Anyone wishing to make an adjustment to their payment should contact our Rates Officer on 06 379 4030 or via rates@cdc.govt.nz.
ENDS