Many Hutt ratepayers will be appalled with news another sizeable rates increase is proposed for the new financial year beginning July.
With elderly parents on the pension in their own home in the Hutt, and a daughter and son with large mortgages, it’s not lost on me that rates bills cause a lot of dismay alongside all the other cost of living pressures.
So what’s going on with Hutt City Council’s costs?
When 2025/26 annual plan discussions started, it looked like the rates rise would need to be 15.3% without taking on any additional projects/services.
Insurance costs are up, the bulk water levy has risen $900,000.
We’re getting $22 million less over the next three years from central government for local road renewal and maintenance than we’d budgeted for, forcing HCC to pay 100% of costs to keep up some sort of programme of footpath renewal. Other roading projects are also having to be deferred, despite a $58m programme of works.
Councillors’ instructions to officers were clear: there was no way we’d approve a rates rise higher than the 13.4% forecast in the Long-Term Plan settled with residents last year.
For the current year, as well as cutting the Safer City Ambassadors, science in schools kits, Te Wao after school and aspects of the events programme, we told officers to find another $600,000 of savings. That’s on track by pruning training budgets, leaving some positions unfilled and shaving procurement costs.
We also made the unpalatable call to install meters in Petone, and put up the hourly parking charge. If we hadn’t, that would have been another $900,000 or so needed from rates. We reasoned car users, including from outside the city, should pay their way.
In workshops and meetings this year, we’ve budgeted on officers finding a further $500,000 of savings. We’re also proposing other cuts and modest staff reductions yet to be discussed with those affected.
That brings the proposed rates increase down to 12.6%, in a year when Upper Hutt ratepayers are looking at 19.9%, Wellingtonians 18.5% and Porirua residents 6.8%.
Pointed questions are being asked by Hutt councillors about the value for money Wellington Water is achieving. Pipe repair costs appear to be higher here than in other regions. Findings of an in-depth review on this are imminent.
These are vital questions when 51% of our rates rise is investment in water services.
But even if it’s found contractor costs should come down, the backlog of three waters upgrades ahead of the Hutt – not least $238m of work needed on the Seaview wastewater treatment plant – is massive, and growing.
At the end of annual plan meetings, not a single councillor had additional suggestions of where further HCC cost savings could be found. I think that’s telling in an election year when councillors are looking to curry favour with voters.
We’re in territory now where further cuts can only come from service reductions. Calls on social media for staff reductions in reality also mean cuts in services.
Annual plan consultation starts soon. Perhaps you have views on where you’d be willing for council to pull back. If so, now’s the time to tell us.