Waimarino rural rates increase spread over two years

Ruapehu Bulletin, 7 September 1990, Page 3

Waimarino rural rates increase spread over two years

The Waimarino rural area is to have a differential system of rating over the next 12 months as a "lead-in" period until next year when all ratepayers within the Ruapehu District will pay under the same rating system.

This decision was made at last Friday's monthly meeting of the Ruapehu District Council in Taumarunui. It came about after a lively debate which Ruapehu District Mayor Garrick Workman described as "The Waimarino Problem". He explained to councillors that he had recently attended, with other elected representatives and management personnel from Council, a series of public rating meetings throughout the district. These had been held in Waiouru, Owhango, Orautoha, Ohura, Ohakune, Manunui, Raetihi, National Park and Rangataua with the purpose of explaining to ratepayers and residents the steps which the council was taking in determining its rating requirements for the 1990/91 financial year. ' These meetings, said Mayor Workman, were invaluable not only as a useful and important public relations exercise but also because it made those who attended well aware, in a most vocal and effective manner, the feelings of the ratepayers and residents who either supported or opposed the proposed collection methods. Several key issues emerged from these meetings: • Generally it was argued that the UAGC (Uniform Charge) pitched at $250 pa was excessive in smaller urban areas where residents did not have the benefit of all the services. • Rate increases in the Waimarino rural area would be excessive of Council implemented

the proposed system and may result in a rates revolt by 'cockies' on the Waimarino Plains if pushed too far. • The majority of those present at the meetings agreed that National Park should receive some assistance (for its recently installed water and sewerage scheme) rather than run the risk of situations developing where rates were not being paid and expensive legal battles would have to be fought as a consequence. It was suggested a sum of $15 per rates assessment could be levied on all ratepayers within the district which would bring their UAGC up to $265 from $250. Mayor Workman summarised the mood of each of those meetings as follows: Waiouru: The UAGC was too high in an area where services, other than water and sewerage, were not available. "Take the Army away and we have nothing" was a typical comment. Owhango: The UAGC was too high. $ervices that have been provided in Owhango have, to a large extent, been provided by the residents themselves. Concern was expressed that su-per-annuitants and those on fixed incomes would be rated out of Owhango. Council should consider implementing a social policy to assist those affected in this manner. Orautoha: Highly concerned about the proposed increases but prepared to pay provided the roads were maintained at a far

higher level. Ratepayers in this area generally own properties which are rated at a lower level than those on the Waimarino Plains and while the proposed percentage increase may be high, in actual dollar terms the increases were not seen as too harsh. Ohura: Concem at the level of the UAGC ($250) expressed. A similar if not harsher condemnation of this charge than in other areas because there is a local feeling that Ohura has no real future and therefore, why should they pay more. Common perception that Ohura has nothing in the way of facilities. Ohakune: This meeting was dominated by those rural property owners on the more highly valued land. Anger and concern was

expressed at the proposed rates increase with the threat of a rate revolt emerging. A resolution was passed calling for a differential rating system to be implemented. Urban ratepayers were notably absent. Manunui: General agreement with the philosophy expounded. Raetihi: This meeting was again dominated by rural ratepayers. Ratepayers were generally scathing about the maintenance methods employed by Council. Councillor Bill Peach expressed his views about the unfairness of the rates collection philosophy given the productive capacity and comparative ability between ratepayers in the T aum arunui v s Waimarino rural areas to pay the proposed in-

creases. Again a resolution was passed, unanimously, for a differential

rating system to be implemented. National Park:

This meeting was poorly attended. Turn page 6

Rates system decided

From page 3 Nevertheless there was a fair representation of residential, commercial and tourist zoned ratepayers. It was agreed generally, that if assistance could be given to National Park to help with the payment of its water and sewerage scheme along the lines suggested (a $15 levy by way of a loan over a period of 1520 years which would make the Uniform Annual General Charge $265 instead of $250), rates could then be met.

Rangataua: Perhaps the angriest meeting of all. The error made by the previous Waimarino District Council (whereby the option of paying a lump sum contribution was no longer possible until next year when the loan is rolled over) was explained. Ratepayers felt that the $30,000 of interest accruing on the loans this year should be spread across the District rather than being met by the Rangataua residents themselves due to the error made by the previous Waimarino District Council. A resolution was again passed seeking a differential rating system. Mayor Workman told last Friday's meeting that he had come away from the four Waimarino based meetings "with absolutely no doubt in my mind about the messageT was getting about the unfairness of the proposed rating increases in that area." He said that market gardening activities in the Waimarino Plains had pushed up land values to the point where all ratepayers in the area were having to pay an extremely high proportion of the rates in comparison with those who are farming in the more remote areas. "The rates in that area are out of kilter and there's no way I want to be associated with any decision to increase rates by 50 or 60 percent in one hit" he said. Revaluations Valuation New Zealand is currently doing a revaluation in the District and, as Te Kuitibased government valuer, Mark Johansen, explained to the meeting some of the property values could decrease in this re.-assessment which is expected to be completed later this year. Inspections have already been completed in Raetihi township and Ohakune's inspections are half completed. Both these townships show a similar capital value de-

crease of 5% and urban land value decreases by as much as 20%. National Park and Waiouru are the next to be inspected. Meanwhile rural properties are also being re-valued. All •property owners in the Waimarino area have been sent questionaires asking for information about stock numbers, productivity, improvements etcetera while at the same time valuers are inspecting properties from the road, noting location, fencing, access etc to compare one property with another in the same general area and these inspections are due to be completed by the end of November. Split vote The decision to introduce a differential rating system for the Waimarino rural area was reached after a lively debate and a split vote of 10:4. Councillors Doug Bennett, Bob Vine, Margaret Snow, Bill Penny, Weston Kirton, Ellen Gould, Bill Peach, Ken Malcolm. Stuart Shaw and Mayor Garrick Workman voted for the resolution while councillors Eddie Turley, Don Lawson, Graeme Cosford and Joe Murphy voted against. Councillor Sue Rodger was absent. Councillor Cosford objected to the motion "because Waimarino county kept their rates artificially low, now we're being asked to pick up the bill for improvements which weren't done by the county." Councillor Lawson voted against the motion because "if we are going to be one district we must bite the bullet and, by delaying (the introduction of a uniform rating system)

we will have to face the inevitable once again." He dis agreed with the matter raised by rural ratepayers having to pay for but not making use of urban facilities. "They are there to be used and (anyway) rural property owners can claim their rates as a tax deductable item." Councillor Turley said that he thought the proposed uniform rating system over the whole district "was as fair as it could be." "Whilst I sympathise with those who are having to pay more, I represent those (in Owhango) who have paid much more over the years and if we differentiate between one group and another we are not one district." The turning point in the debate came with a proposal from Councillor Kirton to introduce a differential system of rating for the Waimarino Rural Ward for a period of no more than 12 months at the end of which ratepayers in that ward will join all the other ratepayers in the district. "As district councillors we should help others in our area who have been disadvantaged and, by providing this interim 'stcpping stone', we aim to have them join us in a year's time after re-valuation" he said. Councillor Peach in supporting the motion for differential rating for the Waimarino, said he came onto council because he had clients coming into his office saying they could not meet their existing rates demands because of the high land values on their properties. "This is because the recent sale of five mar-

ket gardening properties have lifted the valuation - and therefore the rates - of other properties in the Waimarino. Councillor Bob Vine (Waiouru Ward) said that he would note in favour of the resolution because "as the small boy at the other end of the block (the southern region of the Ruapehu District Council) I'm not sure that the proposed increase of 180 percent would be acceptable." General manager Cliff Houston told the meeting that the average assessment of rates which had originally been proposed for the Waimarino had been 37% instead of 78% as generally believed. Because of the decrease in property values both in Ohakune and Raetihi townships urban ratepayers can expect a decrease in their rates of up to 18%. Councillor Gould said that ratepayers in Ohakune had paid very high rates for very many years and any relief would be welcome. A special Council meeting is to be held in Taumarunui today to confirm the introduction of the differential system for the Waimarino Rural Ward. At the end of the formal meeting Mayor Workman invited members of the media to ask questions and in response to how he felt personally about council's decision regarding the differential system for the Waimarino Rural Ward, he said he was well satisfied with the result providing it was limited to an interim period of one year. "It was the only practical solution to a very difficult problem," he said.