A Wanaka councillor would like the Queenstown Lakes District Council (QDLC) to minimise or eliminate the proposed rates increase this year, focusing on savings within the council’s operating costs, but the council says it can not completely revise its budget.

Last month local government councils released their proposed rates increases for the forthcoming financial year (starting July 1). The QLDC announced rates would rise across the whole district, including an increase of 8.76 per cent for Wanaka residential dwellings. 

In response to the economic impact of the COVID-19 pandemic, a number of district councils have now said they will either lower their initial rate increases or freeze the rates for 12 months.

The QLDC has indicated it will review its initial rates forecast with the intent of limiting rates increases but, at this stage, has made no promises.

The Taxpayers’ Union has launched a nationwide campaign to pressure councils to freeze rates and, as of April 5, its online petition had 5758 signatures in support.

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Taxpayer’s Union spokesperson Louis Houlbrooke said ratepayers are facing a fair degree of uncertainty and insecurity when it comes to employment and even being able to pay basic bills. 

The least the council can do is provide some basic assurance on its plans for rates, he said.

The government is prioritising economic relief for businesses and households but rate hikes are likely to undermine the government's relief strategy, Louis said.

“If enough councils commit to a freeze, we think there will eventually be a snowball effect.”

Councillor Quentin Smith is encouraging locals to look at the council’s draft Annual Plan and give their feedback.

QLDC finance general manager Stewart Burns advised the Wanaka App last week while the council was prepared to review its rates it was too late to discard the current consultation document and repeat the process with a completely revised budget for 2020/21.

“We are very aware of the deteriorating economic situation within the district and New Zealand; as a result we will be looking to limit rates increases to a minimum but also to continue to invest in our significant capital programme. This will provide a vital stimulus to the local economy,” he said.

However, limiting the rates increase will not be an easy task, he said.

The QLDC receives a significant amount of revenue from its tourism related investments, such as the annual dividend from Queenstown Airport Corporation, which last year equated to $6.2M, or roughly $237 per rateable property.

Much of this tourism-related revenue essentially reduces rates and the council will have significant additional savings and/or funding to make up the shortfall, Stewart said.

Wanaka-based QLDC councillor Quentin Smith said he was in favour of the council “minimising or eliminating the rates increase for the year”.

He said the council’s operating costs, such as staffing where an increase of $3.7M had previously been indicated, “is where we will need to focus some savings”.

Quentin encourages locals to take the time to look at the council’s draft Annual Plan, which explains this year’s programme and where the rates would be allocated, and make submissions either by letter (post a hard copy submission to: Annual Plan Feedback, Queenstown Lakes District Council, Freepost 191078, Private Bag 50072, Queenstown 9348), by email ([email protected] ) or by completing the online survey here.

People can indicate in their submissions if they wish to speak at a formal hearing which, at present, is scheduled to be held at the Lake Wanaka Centre on May 28. 

At present, submissions to the Annual Plan close at 5:00pm on April 17.

PHOTOS: Wanaka App