Continuing big rate rises could be a factor in turning Kāwhia into a ghost town, an Ōtorohanga district councillor says.
Kāwhia/Tihiroa Ward councillor Kit Jeffries spoke against adopting the council’s annual plan for 2025-26 as it meant an average 30 to 40 per cent increase in Kāwhia rates over two years, starting with 10.16 per cent.
“I am going to exercise a conscience vote on this,” Jeffries told fellow councillors at last week’s council meeting.
“I can’t support it. It’s very difficult to stand in front of someone and say what has caused that increase. I can’t. I don’t have the information that I need to say why our rates in the last two years have gone up 40 per cent. I am really struggling with this.”
Jeffries knew of 18 Kāwhia properties that were charged between $10,000 and $12,000 in rate and lease fees.
“I am really concerned about the effect that this is going to have. We are going to see people leave the town. We are going end up with a bit of a ghost town because people can’t afford to live there. Real estate agents have asked me to ask the council not to put the rates up in Kāwhia because they are having trouble selling properties out there.”
Ray White salesperson Julie Burgess told The News she had two sections and three properties on her books in Kāwhia, and the rates increase could result in more listings.
“Everyone is telling them not to put rates up,” she said.
Jeffries comments came after council strategy and community group manager Nardia Gower told the council the annual plan included a 0.4 per cent rate increase on the Long Term Plan projection for the 2025-26 financial year.
The plan took into account inflation and increased depreciation costs, as well as $45,000 towards local body elections, an extra $100,000 associated with construction and maintenance of Aotea and Kāwhia sea wall, and $50,000 towards a climate change response plan, Gower said.
Max Baxter
Ōtorohanga mayor Max Baxter said the annual plan was based on the Long Term Plan which had gone to extensive community consultation.
“Everyone sitting around this table is confronted by the same rates increased as everyone else is,” he said.
Chief executive Tanya Winter said the council could make significant cuts if it wished.
Councillor Katrina Christison suggested “we just hang back and put the brakes on for a bit.
“Everyone is talking about a fixed income, and how hard it is,” she said
The motion was passed with Jeffries vote against the plan. He also opposed a follow up resolution to raise rates, which also passed.
After the meeting, Jeffries told The News rates affordability was becoming a real issue for many on fixed incomes.
Kit Jeffries
“The ‘economies of scale’ in our smaller communities are becoming increasingly evident, particularly when residential rates for some will exceed upwards of $6500-$7,000 in 2025-2026.”
Many residential ratepayers faced some difficult decisions on how to cope with increasing commodity prices and whether or not to sell up and move to a larger centre where numbers of similar ratepayers spread and ease the rates burden.
“In a small community like Kāwhia with many leasehold properties, the combination of leases and rates is also proving a financial barrier to the point where they are becoming a determining factor for potential purchasers,” he said.
“I do question how long small councils like ours can remain affordable and sustainable in the future unless something positive is done to address this by central government. With costs ever increasing, councils generally need to look at how they can continue to fund their activities at current service levels and whether in fact the future aspirations of ratepayers captured in Long-Term Plans are affordable. It’s a matter of great concern to me and I’m sure to many others.”
Earlier in the meeting the council listened to Ōtorohanga Community Board and scaled back plans to raise water connection and use charges to $210 and $2 respectively.
Kawhia Coast. Photo: Hamilton and Waikato Tourism
