'Toilet tax' a drain on school funds

5:20 pm on 4 September 2024
Funds that should be used to educate kids are being flushed away on council charges. PHOTO/EMILY IRELAND

Funds that should be used to educate kids are being flushed away on council charges. Photo: LDR / Emily Ireland

School funds are being flushed down the drain thanks to a "toilet tax" imposed by councils.

The disparity between what schools are paying to councils across New Zealand means some are forced to dip into funds set aside for learning.

"It takes away from what we can do for the kids," Greytown School principal Paula Weston said.

Her school was paying $37,000 in rates this year because the council charged $1033 for each of its 33 toilets. This was five times the amount per student than some other schools.

"When we compare what we're paying to what other schools are paying, there's no equity in the rationale and no mechanism for us to get relief from the Ministry of Education."

Weston said the charge per toilet in her district was "astronomical" and that she had spoken to the council about closing toilets to lower the rates bill.

Under the Local Government (Rating) Act, councils cannot charge general rates to schools, but they can charge targeted rates for wastewater, water, and rubbish collection.

Martinborough School, also in the South Wairarapa district, has 27 toilets and was charged just over $30,000 in rates this year.

Principal Craig Nelson said it was a "significant amount and it seems wrong".

He said the operational grant schools received from the Ministry of Education did not take into account the amount different schools were charged for council rates.

A representative from his school's Board of Trustees would be making a case to the council for a rates remission policy for schools.

Board member Dylan Firth said school toilets did not place additional demand on the local wastewater system compared to other properties with multiple toilets, such as accommodation serving non-residents.

"The users of school facilities are primarily local residents who would otherwise utilise the town's wastewater system at home," Firth said.

"It is worth noting that in many other jurisdictions, schools pay a single rate for wastewater."

Masterton, for example, charged schools for water and wastewater based on the property's capital value.

Tim Nelson, Masterton councillor and principal of Lakeview School, said this was a fairer way to charge rates.

Lakeview School paid about $13,000 in Masterton District Council rates each year.

His school had more kids than Martinborough School "and we are paying 40 percent of the rates they pay".

"They are really paying a toilet tax," he said of his southern neighbours.

"That's a lot of money and a significant chunk of the operational budget."

He said the way schools were charged rates based on the council district was "a massive disparity", and it did not have to be this way.

"For every dollar going to council rates, that's less resourcing going into student learning which is the core business of schools.

"It would be a really hard hit if Masterton District Council changed to this system of rating, but that wouldn't happen around our council table."

The neighbouring Carterton District Council, which is yet to strike its rates for this financial year, charged schools $1086 per toilet last year.

In Kāpiti, schools were charged $249 per toilet under an education rating category.

In Upper Hutt, the charge was $584.

A Ministry of Education spokesperson said schools received funding to support the costs of operations including local council rates for sewage.

This was included within a school's base funding and was "not separately identified".

Local Government Minister Simeon Brown was contacted for comment.

A South Wairarapa District Council spokesperson said they charged schools on a "per pan" basis and do not offer any concession like some councils.

A Carterton District Council spokesperson said the per toilet charge for non-residential users was consistent with the principle that "users who exacerbate council costs pay higher charges for those services".

Council rates examples for Wellington region schools:

South Wairarapa: Martinborough School - $30,782 (243 students)

Porirua: Postgate School - $27,647 (301 students)

Carterton: Carterton School - $20,573* (265 students)

Upper Hutt: Fraser Crescent School - $10,748 (247 students)

Masterton: Masterton Primary School - $10,252 (250 students)

Hutt City: Avalon School - $9172 (219 students)

Kapiti: Kapiti School - $8725 (129 students)

Wellington City: Northland School - $4654 (252 students)

*Last year's rates

Council rates examples for schools across New Zealand:

Far North: Kawakawa Primary School - $30,271 (184 students)

Whangarei: Hora Hora School - $26,444 (283 students)

Waipa: Cambridge East School - $16,293 (401 students)

Tauranga: Bellevue School - $15,820 - (354 students)

Gisborne: Gisborne Central School - $14,923 (370 students)

Timaru: Gleniti School - $10,696 (390 students)

Dunedin: Balaclava School - $9236 (254 students)

Kaipara: Kaiwaka School - $7496 (156 students)

Hamilton: Bankwood School - $7186 (339 students)

Taupo: Tauhara School - $7765 (256 students)

Palmerston North: Takaro School - $7037 (256 students)

Napier: Greenmeadows School - $1657 (441 students)

LDR is local body journalism co-funded by RNZ and NZ On Air.