Mayor and councillors pleased with 3%

Yesterday I posted What to do with an unspent $1m? The Dunedin City Council spent it and were happy to keep a rates rise to their targeted limit of 3% (they achieved 2.97%).

ODT: Council keeps rates rise to 2.97%

Councillors were almost unanimously pleased with the outcome, Mayor Dave Cull saying it had arrived in a “very good place”.

“We have provided for almost all of what we went out and proposed to our community in the consultation.

“We have managed to keep faith with our promise to stick within a 3% rate increase,” Mr Cull said.

The problem with this is that rates continue to rise faster than inflation, this year about three times faster.

Last year DCC set a 3.8% rise, also well ahead of inflation. And it’s been worse than that, as this chart to 2013/14:

rates-infation-chart

Source:  https://www.dunedin.govt.nz/services/rates-information/rates-history

I think that rates outstripping inflation is a common problem around the country. It’s certainly an issue in Auckland.

If central government kept raising taxes significantly higher than inflation voters would rebel, so why do local body voters not seem to care?

Leave a comment

2 Comments

  1. artcroft

     /  13th May 2016

    Someone’s got to pay for that covered stadium of your’s Pete. At least you have a decent rugby team to show for it.

    Reply
  2. Alan Wilkinson

     /  13th May 2016

    Local government in city-size junks is substantially unaccountable as the mass of voters don’t know what is going on. Also most who rent have no direct knowledge of the impact of rates on them.

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s