Statement from Kāpiti Coast District Mayor Janet Holborow

Rates cap risks short-changing communities

Local government is already under significant pressure to deliver infrastructure and services communities rely on, and we are deeply concerned that the Government’s proposed rates cap could make that job harder – not easier.

A blunt cap risks forcing councils to delay essential maintenance, scale back services, or defer investment in the roads, community facilities and growth infrastructure our communities need.

Kāpiti is in a more fortunate position than some other councils, with sound finances, quality infrastructure, and good services but even well-run councils are facing rising costs and aging assets, growth pressures and increasing community expectations.

A 2-4 percent rates cap will make it significantly more challenging to maintain current levels of service and pay for necessary upgrades and maintenance while also investing in the future.

Council works hard to keep rate increases as low as possible while making responsible decisions about core infrastructure and how we invest in growth.

We’ve already started conversations with our community about what we should prioritise, trade-offs, and who should pay for services and activities as we look to develop our next Long-term Plan.

We know we can’t afford to do everything. Every budget decision affects people differently and a rates cap will make conversations about what Council can and can’t afford to do in the future even tougher.  

We urge Government to take more time to fully understand the impacts of the rates caps on communities before moving ahead.

We agree change is needed but not all councils have the same starting point. A one-size-fits-all rates cap could limit investment in critical infrastructure and undermine the services and facilities our communities need to thrive.