Kāpiti adopts Long-term Plan to reduce debt

27 Jun 2024, 3:06 PM

Kāpiti Coast District Council today adopted its Long-term Plan 2024-34, confirming a 17.19 percent average rates rise in 2024/25 and committing to reduce debt.

Mayor Janet Holborow said the Council had worked hard to balance affordability for ratepayers, with financial sustainability and building resilience for the district.

“Strong advocacy by councillors on funding options for the three waters operating costs shortfall meant we went through a thorough evaluation of potential impacts and trade-offs,” she said.

Mayor Holborow said despite reducing operating costs and prioritising essential infrastructure and community facilities, more than nine percent of the increase was for unavoidable everyday costs such as inflation, interest, and depreciation. 

An additional five percent increase was needed to address a $4.7 million shortfall for three waters services caused by a change in government policy.

“We’ve added two small grants in Year 1 to keep two vital community groups going, and reduced some proposed fees and charges increases to do no more than keep pace with inflation.”

The 17.19 percent average increase was not out of step with expected rises across the country, she said.

Council aimed to reduce debt by $153 million over ten years, so had set an average rates increase of seven percent for Years 2-10 of the plan, Mayor Holborow said.

“I want to reassure our community that we’re doing our utmost to reduce our spending where we can, as the last thing we want to look at is reducing services.

“We know that any rates increase isn’t ideal. I hope those in need get in touch with Council to see if they’re eligible for a rates rebate or remission.

“We’re very appreciative of the feedback, which influenced changes including reducing the proposed increases for hall hire charges and our older persons’ housing rents, and the decision not to introduce a new climate rate,” Mayor Holborow said.

Read more about the Long-term Plan