Wellington City Council told to Constrain Spending | Scoop News

Business and residential ratepayer groups have frequently expressed concerns about ongoing increases in rates costs. The Wellington Chamber of Commerce made submissions on this issue earlier this year -
Wellington City Council told to Constrain Spending Scoop News  .   While we may not agree with the WRCC comments about climate change - which we see as everyone's responsibility - we do agree that above inflation rates rises over the long term are having a deleterious effect on the city's growth, private sector job creation and prosperity.

A thorough review of the Council's scope of activities is long overdue.  Central government too has a responsibility to provide funding if it is going to force councils to deliver certain non-core services not previously delivered.

Time to provide rates relief to kiwi battlers

The Report of the Local Government Rates Inquiry last year “identified affordability problems for rates for some sections of the community which will increase over the next ten years.” In other words councils are pushing up rates so fast that low income households can’t afford to pay and its going to get worse over the next ten years.

Senior citizens and others on fixed incomes face a constant struggle trying to budget in the face of local authorities which seem to have an insatiable appetite for ratepayer dollars.

It is not acceptable for local authorities to demand rates rises above the rate of inflation and population growth. Rates rises should be capped at the inflation rate plus an allowance for population growth. This will inevitably mean that Councils have to prioritise like the rest of us. Pet projects might have to be delayed or scrapped until they can be afforded.

Wellington's Regular Rates Rise

WELLINGTONIANS face another rates rises this year. The average rates increase is likely to be around five percent - almost twice the inflation rate. The Council's Draft Annual Report also recommends increases to fees and charges for sports fields, burials and cremations, and swimming pools.

At a time when central government is urging people to get fit the Council is proposing a 10% increase in fitness centre fees and 5% in learn to swim programmes. Pool entry fees are expected to increase in 2009. At the other end of the spectrum burial and cremation fees will go up by an average of 8.5%.

Surely its time for much greater rigour to be brought to bear on Council spending. Perhaps the Council could focus more on those items that promote the city's economic development - such as improved infrastructure in the north of the City - and less on some of the never-ending series of Council-sponsored events or the rate-payer funded sculptures dotted around the central city?

The Draft Annual Plan will be debated and finalised for consultation at a council meeting on March 27. Wellingtonians will then get their say between April 16 and May 19. For more information visit www.wellington.govt.nz