The Kawerau community is being asked for feedback on a proposed 5.8 percent rates increase and the level of the uniform annual general charge on each property.

Submissions opened on April 17 with Kawerau District Council asking for feedback from the community on the proposed rates increase, which keeps the current levels of services for the community.

Feedback is also sought on keeping the current Uniform Annual General Charge (UAGC) at $900 or reducing it to $850 due to the impact of the increased targeted water and wastewater rates. The UAGC is the minimum rates charge per property.

Council chief executive Morgan Godfery said the council’s main focus remained on delivering the best value services to the community and balancing affordability with essential investment.

“We continue investing into Three Waters infrastructure and are scheduled to complete the final stages of our district-wide drinking water pipe replacement programme in the next two financial years.

“Following robust community support, we kept the in-house delivery of water services as part of the Local Water Done Well reforms. We also continue to explore opportunities with our neighbouring councils.

“This also requires the gradual nine-year transition to targeted water and wastewater rates, so that those who use these services pay their fair share over time.

“Financially, we remain committed to prudent management and sustainability. This year marks the first planned 3 percent increase in our funding of depreciation for strategic assets, moving us to 100 percent funding by 2037-38 to protect future generations.

Mr Godfery said enabling economic and community growth remained a priority including delivering the 100-plus lot residential development at Stoneham Park.

The level of increase falls just outside the rates affordability framework of estimated inflation of 3.1 percent, plus two percent, but is well below last year’s rates increase of 8.5 percent. The drivers of the rates increase are:

• Personnel and government-mandated KiwiSaver percentage increases to 3.5 percent (1.9 percent impact on rates).
• Depreciation expense increases due to value of council assets rising by $29.9 million, and the increase in depreciation funding to 68 percent (2.1 percent impact on rates)
• Setting up in-house business unit to continue delivering water services and compliance (0.3 percent impact on rates).
• Roading costs increases (0.2 percent impact on rates).
• Financing (loan interest) costs (0.2 percent impact).
• Audit fee for Long Term Plan (0.7 percent impact).
• Refuse disposal fee increases (0.2 percent impact).

The overall rates increase of 5.8 percent is based on keeping the same level of services for the community. The actual rates increase per property will depend on the value of the property.

As part of the consultation, the council is presenting the plan to consultation partners and at public meetings, with next public meeting planned for next Wednesday, May 6 at the Kawerau Concert Chamber from 5.15pm to 6.30pm, and to Grey Power Kawerau and Districts on Friday, May 8 from 2pm to 3pm.

Submissions close on Monday, May 18 with a hearing for submitters to present their feedback to the council scheduled for Wednesday, June 3.

The Annual Plan 2026-27 will be adopted following the hearing and deliberations and any further amendments June 24.