New Plymouth weighs rates caps as low as two percent

New Plymouth may consider rates rises as low as two percent as it prioritises spending in its ten-year plan.

It would be the first time that impact on rates was a formal factor in New Plymouth District Council’s long term planning.

The recommendations from staff come in the same week the Government announced it intends imposing a 4 percent rates cap on councils from 2029.

Councillors will consider the new Project Prioritisation Framework on Thursday as part of the 2027-37 plan process.

A report from staff proposes using three rates-rise scenarios – two, four and six percent – which would lead to three draft programmes for councillors to consider.

Councillors would then choose trade-offs between projects and weigh up “risks of deferral” including whether delays could “increase risk of asset failure”.

The report says officers had never been given affordability limits when drafting previous long term plans.

“This has resulted in initial programmes which are unaffordable (and undeliverable),” the report says.

The report says all capital and operating projects would be weighted on urgency and how they meet NPDC’s strategy and objectives, and given a score of one to four.

“The project prioritisation framework is intended to provide a transparent, consistent and evidence-based method for assessing and ranking projects across Council activities.”

They’d also be scored against the council’s Tiriti Outcomes Framework – but that wouldn’t count in the new priority-setting scheme.

“This score does not factor into the overall strategic goals and criticality scoring for project prioritisation … but rather sits alongside it.”

The Tiriti score would instead “help fully inform” councillors’ decision-making.

Mayor Max Brough scored a 4.9 percent rates rise this year but New Plymouth will consider going lower.

Mayor Max Brough met his self-imposed five percent rates cap in this year’s annual budget despite some councillors fearing cuts were “kicking the can down the road”.

There were cuts across the board, more borrowing, and the capital works budget shrunk by almost a fifth – including less spending on stormwater and sewerage works.

At that time finance partnering manager Matt Thomsom warned councillors they’d need to consider ongoing implications of the cuts in the long-term plan process.

“I believe there'll be some very hard decisions coming to you as elected members … if we are under a rates cap,” Thomson said.

On Tuesday local government minister Simon Watts said his law would cap rates rises at four percent, "putting a brake on excessive increases and giving ratepayers greater certainty".

Watts confirmed the rate-capping would save an average household $34 a year.

“This rates cap is about driving greater fiscal discipline, keeping rates affordable, and ensuring councils are focused on delivering the services ratepayers rely on,” he said.

nā Craig Ashworth craig@tekorimako.co.nz

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