■We all know that council rates rise much faster than the consumer price index (CPI) but don’t let anyone tell you that council costs rise faster than the CPI, writes Philip Jacobs

It is a fact that the Business and Economic Research Limited’s (BERL) Local Government Cost Index (LGCI) for council operating costs actually rises slightly less than the CPI – it has done so for decades for well-known reasons relating to different cost pressures and economies of scale.

So, if local government costs (LGCI) do not rise faster than the CPI what is the cause of council rates increasing much faster than the rate of inflation?

It comes down to one thing in two parts.

First, Whakatane District Council staff numbers continue to increase much faster than the population growth of our district. Why?

It is because our do-good elected council does not know how to say no.

And don’t think that the extra staff are not needed – they are beavering away at improving council’s service levels.

And secondly, there is the infrastructure spending to support council’s improving service levels – it is huge.

In the 2024-34 Long-Term Plan improving service level infrastructure spending was budgeted at a whopping $338 million – and that is after council intentionally under-budgeted its water service infrastructure spending between 30 percent and 50 percent due to funding constraints within the 2024-34 LTP, and deferred $260 million of additional three waters infrastructure costs beyond 2034.

And remember that council spending on new services and infrastructure comes back to haunt ratepayers as ballooning debt and increased rates related to new operating costs, new depreciation charges and interest costs on the new infrastructure asset’s loan borrowing.

Did we, the community, instruct the elected council to spend up large improving council services?

Are we as ratepayers happy that council rates continue to increase much faster than the CPI and LGCI because of improving council service levels?

These questions are very relevant at this time because Whakatane’s elected council is meeting for three days at the end of the month and will consider its infrastructure spending plan for the 2027-37 Long-Term Plan – and they are doing it having decided not to consult with the community beforehand.

Don’t be surprised if our do-good elected council continues to support many hundreds of millions of dollars of forward infrastructure spending on service level improvements.

Don’t be surprised if the elected council imposes 10 percent-plus rates increases for the next two years before the 4 percent rates capping door is slammed in their face in 2029.

And don’t forget that rates capping does not apply to water services.

Expect your water rates to continue to increase well above 8 percent per year for the foreseeable future as council progresses its major Matatā Sewerage, Plains Water and other water service projects.

I think we have a case of carpe diem – we all need to “seize the day” and contact our mayor and councillors to let them know our views about rates rises and service level improvement projects before the infrastructure spending plan for the 2027-37 Long- Term Plan is finalised.

Write them a letter, send them an email or give them a call – their contact details can be found on the council website.

And do it now because it will be much harder to push back unwanted and unnecessary council infrastructure spending during the long-term plan consultation period in April next year.

History shows that once council has decided to progress an initiative, they are unlikely to turn back in the face of community opposition. (eg, the Rex Morpet Hub project).