Taupō District Council has proposed an average rates increase of 8.4 per cent for the financial year beginning 1 July 2025, marginally higher than the 8.3 per cent forecast in the Long-term Plan adopted last September.
The Council revealed at yesterday's meeting that unplanned cost increases, including central government's Local Water Done Well reforms and rises in insurance, finance costs, depreciation and committed contracts, added over $2 million to the Council's expenditure.
Mayor David Trewavas said these cost increases would have pushed rates up by 10.2 per cent without intervention.
"This would have resulted in a rates increase of 10.2 per cent which would have been unacceptable to the community," said Mayor Trewavas. "Staff have responded by looking for savings and efficiencies, and delaying or slowing down projects to bring the figure back in line with the Long-term Plan projections."
The Council emphasised that the 8.4 per cent figure is an average only, with actual increases varying between properties depending on location and usage.
To maintain a lower increase, several planned additional activities will be delayed, including reserve management plans, feature planting and landscaping projects, community hall wi-fi installation, and proactive tree management projects.
"Some council work set out in council's Long-term Plan will not be delivered in the upcoming year and this was the trade-off that had to be made to keep the rates increase at or near the forecast figure," Mayor Trewavas explained.
The New Zealand Taxpayers' Union has criticised the proposed increase. Sam Warren, Local Government Campaigns Manager, described it as "a real kick in the guts" for residents.
"Taupō locals will be disappointed by yet another rates increase. Anything above the rate of inflation is just too high," Warren said. "When you consider the fact that this year's 8.4 percent increase is on top of last year's 8.6 percent hike, that's a compound rates increase of nearly 18 percent in the last two years!"
Warren also suggested the increases could affect this year's local elections, telling Lake FM: "Turnout for local elections are notoriously low in New Zealand. But that might change after some of the highest rates increases in the last 30 years. We expect voters to be looking closer than ever at representatives determined to restore sensible spending in Council."
The proposed rates increase will be formally confirmed by councillors at a meeting in late June.
