Waimarino rates relief to end

Ruapehu Bulletin, Volume 8, Issue 374, 19 February 1991, Page 1

Waimarino rates relief to end

Rural ratepayers to face 24% plus increase In rates

Pleas for rates help for Waimarino rural ratepayers to continue fell on deaf northern district ears at last Friday' s full Ruapehu District Council meeting.

Despite calls for a continuation of the differential rate in favour of the southern rural areas, the majority of councillors voted in favour of sticking to the policy of having one general rate across the whole district. The differential, put in place last year for that year only, was to ease the pain of the 40 plus per cent increase in rates faced by the rural areas because of the way rates

were allocated. "Even though we said the differential rate would apply for one year, I'm in favour of retaining the differential rate because of the downturn in farming, especially in light of the Wool Board's policy, and the increased valuations of Waimarino plains properties," said Mayor Garrick Workman after the meeting. He said the increased valuations exac-

erbated the situation and that some would face an even bigger increase because of the shift. "This year $0.25 million will go out of the Waimarino to the RDC and if the roads don't improve then many

people will see no specific advantage to the Waimarino whatsoever in being part of the Ruapehu District," said Mayor Workman. "It's difficult for me to go down there and look those guys in the eye

and say 'this is for your benefit'," said Mayor Workman. "We've got to get back to the basic situation where Waimarino County was paying the rates to do all the work Turnpage2

Waimarino differential rate to finish

Front page 1 they had," said Cr Bill Peach. He said the land value system of setting rates was "absolutely inaccurate" in setting rates when Waimarino was to pay 20 per cent more in rates for no increase in services. Crs Eddie Turlev and

Joe Murphy both said in the debate that their own rates had gone up and they were not helped by a differential rate. "I'm sorry but I can't be sympathetic (to Waimarino), we have paid and been bled for years and it looks likely to continue. The mis-

management of the past in the Waimarino, and I'm not saying that is the case, is no fault of ours," said Cr Turley. "And I will in no way support a differential rate for the Waimarino." Valuations blamed Cr Perrny said the situation was Valuation New Zealand's fault, with Waimarino properties valued much higher in relation to stock units than Taumarunui. "It's really a case of the valuation department (Valuation New Zealand) absolving itself of its responsibility," said Cr Penny. "If you've got 3500 stock units for arguments' sake here and you've got 3500 stock units on a similar contoured piece of land at the back of Ruatiti somewhere, then (VNZ) need to explain to me very carefully why they aren't the same value (given the same improvements values)." Cr Malcolm agreed, saying it was not up to the council to set a differential rate but to Valuation New Zealand to value accurately. Cr Doug Bennett said he wanted to see the continuation of the differential rate but that he thought it should be extended to accommodate the other hard-hit parts of the district. Cr Cosford said the Waimarino County had kept their rates artificially low and now was suffering the consequences. He said the WCC missed out on subsidised work it could have had done under the old National Roads Board. Separate roading rate The general manager raised the issue of a separate roading rate for the northern and southern areas, whereby road works carried out would be paid for from rates from the area concerned. Mayor Workman said the difficulty with raising the standard of roads in the Waimarino as opposed to similar work in the Taumarunui rural area was that much of the Waimarino work would not be eligible for subsidy because of the low cost-benefit according to Transit New Zealand. This meant similar work in Waimarino would actually cost the council more than it would in Taumarunui. "I wouldn't wear a different roading fund," said Cr Ken Malcolm. "If you separate the district into two areas, where does it stop? We're all collectively a district and have a district responsibility and if we do that (two road rates) then the quicker we get back into six or seven local authorities the better." The general feeling of the meeting was negative towards the idea. Nil increase One area the councillors were in agreement was that the council of-

ficers should work out the 1991-92 budget so that there is a nil general rate increase overall for the district. Capital Value vs Land Value Councillors shied away from the option of rating on capital values of properties, with some against the idea and some only in favour of looking at the system possibly for next year. Cr Ken Malcolm said the option had merit but needed a lot of study and that it would be too late to implement this year. Some councillors felt ratepayers had seen too many changes in local government in too short a time and that even if the system were to be implemented they should be given some breathing space. The effect on big business interests was discussed, with the council hearing that Electricorp's rates, for example, would go from about $650 to $650,000. Other examples cited were: Defence land increased from $63,000 to $513,000; Winstone Pulp International at Karioi from $1400 to $35,000; and AFFCO

from $2200 to $51,000. Local rate The council discussed the option of applying a specific rate to an area to complete a specific job, which was an idea floated by the mayor. He asked if after the budget was set there was work a particular part of the district wanted carried out in that year, was it fair to allow them the opportunity to rate for it locally. He cited Ohakune's Miro Street work as an example, where it is unlikely that the kerb and channel and footpath work will be carried out this year, paid for out of the general rate. If Ohakune wanted to pay extra to have the work done now rather than have to wait, should they be given the opportunity to do so, he asked. Cr Bill Peach said the move would set a dangerous precendent and the eventually all such work could end up on a local list and would negate the advantages of the united district. General manager Cliff Houston said there would be administration difficulties with rating extra in a town for such a small amount of money.