Resident shocked at $1000 rates increase
The Queenstown Lakes District Council in June approved rate increases for the region which exceeded the expected increases in the 2024-2034 long-term plan.
The median residential rates increase for median value residential homes went from 18.7% for Wānaka, 17.6% for Luggate, 15.3% for Hāwea and 13.2% for Queenstown.
Lake Hāwea resident Jessie Bryne bought her house in the Longview subdivision almost two years ago and was surprised when the rates for the property went up by almost $1000.
Although she knew rates were set to increase, she did not know they would go up by that much and so soon.
"I just know that we got our first bill with the rates increase this past week, and I was like wow, so this is kind of the new world order now," she said.
The rates for her 500 sq m home went from $3856 last year to $4720 this year.
Hāwea Flat resident Murray Ball had a similar experience this month. Mr Ball paid $574 in rates over three months for about 3 acres of land last year.
Over the past year he subdivided his land in order to sell 1 acre and recently received the rates bill for the smaller subdivision, which was $574 over three months, the same amount his 3 acres were the year before.
"I was expecting to pay two lots of rates, because I've got two titles," he said. "But I did not expect that number."
The high increases in rates had been part of the Queenstown Lakes District Council 2024 to 2034 Long Term Plan as a way to compensate for increased expenditure, especially on wastewater schemes.
"An increase of this level is historically high but unavoidable," the document said.
"... It reflects the impact of significant cost escalation in both capital expenditure and operating costs over the past 3 years."
However, the rate increases for 2025-2026 exceeded the draft increases in the long-term plan.
For example, the increase for Wanaka's residential rates was planned to be 13.5% but the final increase was 18.7%.
QLDC finance general manager Katherine Harbrow said there had been underlying costs for roading, stormwater and wastewater services.
"The trucking of sludge waste has increased, along with significant capital projects in the area increasing depreciation, interest and operational costs," she said.
Deputy mayor Quentin Smith emphasised that increasing the rates was unsustainable.
"Rating as a funding model, I would suggest is fundamentally broken and without some additional sources of revenue," he said.
He mentioned local councils' ongoing advocacy with central government to enforce visitor levies and a 5% bed tax which would go towards future infrastructure.
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Otago Daily Times
a day ago
- Otago Daily Times
Resident shocked at $1000 rates increase
Residents across the Queenstown Lakes region got a shock after receiving record high rates bills on their properties. The Queenstown Lakes District Council in June approved rate increases for the region which exceeded the expected increases in the 2024-2034 long-term plan. The median residential rates increase for median value residential homes went from 18.7% for Wānaka, 17.6% for Luggate, 15.3% for Hāwea and 13.2% for Queenstown. Lake Hāwea resident Jessie Bryne bought her house in the Longview subdivision almost two years ago and was surprised when the rates for the property went up by almost $1000. Although she knew rates were set to increase, she did not know they would go up by that much and so soon. "I just know that we got our first bill with the rates increase this past week, and I was like wow, so this is kind of the new world order now," she said. The rates for her 500 sq m home went from $3856 last year to $4720 this year. Hāwea Flat resident Murray Ball had a similar experience this month. Mr Ball paid $574 in rates over three months for about 3 acres of land last year. Over the past year he subdivided his land in order to sell 1 acre and recently received the rates bill for the smaller subdivision, which was $574 over three months, the same amount his 3 acres were the year before. "I was expecting to pay two lots of rates, because I've got two titles," he said. "But I did not expect that number." The high increases in rates had been part of the Queenstown Lakes District Council 2024 to 2034 Long Term Plan as a way to compensate for increased expenditure, especially on wastewater schemes. "An increase of this level is historically high but unavoidable," the document said. "... It reflects the impact of significant cost escalation in both capital expenditure and operating costs over the past 3 years." However, the rate increases for 2025-2026 exceeded the draft increases in the long-term plan. For example, the increase for Wanaka's residential rates was planned to be 13.5% but the final increase was 18.7%. QLDC finance general manager Katherine Harbrow said there had been underlying costs for roading, stormwater and wastewater services. "The trucking of sludge waste has increased, along with significant capital projects in the area increasing depreciation, interest and operational costs," she said. Deputy mayor Quentin Smith emphasised that increasing the rates was unsustainable. "Rating as a funding model, I would suggest is fundamentally broken and without some additional sources of revenue," he said. He mentioned local councils' ongoing advocacy with central government to enforce visitor levies and a 5% bed tax which would go towards future infrastructure.
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