7.84% rates rise “a normal part of the cycle”

Saying that a 7.84% rates rise will be “in the lower quartile” won’t mean anything to ratepayers who face increases of $200-400. I am horrified by this level of increase – and it sounds like it is what much of the country should be expecting.

ODT: DCC approves second highest rates increase since 1989

The Dunedin City Council has backed a higher-than-expected rates rise of 7.84%, after agreeing to a series of last-minute funding boosts yesterday.

Plus:

The council has also signed off on a 4% increase in most fees and charges.

The waffle:

But Mayor Dave Cull insists the rates hike, like the fees and charges, are just a normal part of the cycle as cities invest in their futures.

That was within the council’s new self-imposed rates limit of 8% for the first year.

That’s about four times the rate of inflation.

Council chief executive Sue Bidrose said the city’s rates would remain in the lower quartile, while other centres across the country eyed increases of between 3% and 15%.

Lower quartile, about average, that’s tosh when trying to make excuses for an increase of about 8%.

It’s not as bad as 15%, but that’s like saying it’s not as bad getting two teeth pulled by the dentist as getting four teeth pulled.

Mr Cull said cities went through cycles of investment, leading to periods of higher rates increases, but the alternative would be worse.

Those cities that kept rates artificially low by not spending in the short term were eventually forced to catch up, leading to ”massive rates increases” later, he said.

”They pay the price in the end. The idea is to try to keep it smooth, but every now and then you have got to invest,” he said.

More nonsense. I think that rates have been rising ahead of inflation for yonks.

This is budget day news. I don’t expect to get any joy from the Government today either, but the budget shouldn’t be this bad.

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10 Comments

  1. Ray

     /  May 17, 2018

    I truely despair when I watch the numpties who run my favourite city continue to make some very strange decisions about its future.
    Any serious outside investments are stymied or stonewalled (thinking hotel development ) while a very expensive bridge to the old port area and what seem to be unused bike ways are all the go.

    Reply
  2. alloytoo

     /  May 17, 2018

    It disturbs me when the Minister arranges an enquiry to alternative local government funding models in order to finance infrastructure.

    What the hell are they spending the existing funding on?

    What the hell have they exhausted their existing borrowing (That which should be used on long term infrastructure) on?

    But hey, they’ll get the trams running…..maybe?

    Reply
  3. High Flying Duck

     /  May 17, 2018

    Where’s Blazer to tell us all how property owners are creaming it at the expense of everyone else?
    Rates at these levels are a blight and if increases like this persist we will soon be tenants in our own houses paying usurious amounts to local government to fund the bevvy of spin doctors required to calm us down over the latest rates hikes.

    Reply

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