Mayor of South Waikato Gary Petley. Photo: Libby Kirkby-McLeod / RNZ
South Waikato District Council is suggesting an 18.5 percent rate rise - one of the biggest in the country.
Mayor Gary Petley said it is the best option to get the council through the next year without a major budget deficit, but many in the district are not convinced residents can afford it.
South Waikato includes Tīrau (the town of corrugated iron creations), Putāruru, and Tokoroa, which was once a thriving forestry town.
It has been a tough few years, with Covid-19 pushing many residents into difficult financial situations.
Tai Taiki from the Tokoroa Budget Advisory Service said many were finding affording housing a major issue, with very little money left for basics like food.
She said the proposed 18.5 percent rate increase is not something people can easily find money for.
Gwenda Brodie (left) and Tai Taiki from the Tokoroa Budget Advisory Service. Photo: Libby Kirkby-McLeod / RNZ
"It will be way over the top of their heads. People can't even manage now, let alone having to fork out more money to cover the increase in rates."
Chairperson Gwenda Brodie agreed, and said there needed to be careful consideration given to such an enormous rise.
"The number of people that are likely to default - whether it's on actually paying the rates, or as renters who have been hit by the rates rise because the owners need to pass on the cost - that's got enormous implications. Those are the sort of social things we worry about."
The district had no increase at all to rates during 2020 when Covid-19 put their communities under pressure.
Petley accepted an 18.5 percent increase would be hard, but said not increasing rates would mean cuts in services which once gone, would be difficult to ever claw back.
"We haven't had a substantial rate increase for a number of years. Now we find ourselves in the position where 18.5 percent - we have to."
On the main street of Tokoroa, owner of Morrissey's clothing store Larry Sullivan said people moaned about the council unfairly, but he had faith in them. He did not think they would raise rates just to make people pay more.
"They've got good solid reasons to keep the coffers in good shape. I trust their decision."
Owner of Morrissey's clothing store Larry Sullivan. Photo: Libby Kirkby-McLeod / RNZ
The mayor recommended people get involved in the annual plan consultation process rather than just complain about it on social media.
"Have a look at the document. Have a look at everything that staff is recommending. That's the best case scenario. The worst case scenario... we don't even want to entertain."
South Waikato District Council said it would consult as widely as possible on the proposed rate rise to hear all views.
The plan opened for public consultation on 12 May, and closes at 4pm on 9 June.
