Hundreds of Waitaki residents gathered in Ōamaru to protest a proposed 17 percent rates increase, arguing the hike is unaffordable and will force households to choose between essential costs like food and power. The protest follows the Waitaki District Council’s decision to backtrack from an earlier 22 percent proposal amid public backlash.
Why are residents protesting the rate increase?
Ratepayers presented a petition signed by over 5,000 people to Mayor Mel Tavendale, citing deep financial strain. Local resident Kathryn Bennett stated that while the community understands costs must rise, a hike exceeding 10 percent is unsustainable in the current economic climate. Renters also face potential instability, with resident Marion Houliston noting that property owners may pass the increased costs on through higher rent, affecting the wider community regardless of homeownership status.
What is the council’s position?
Mayor Tavendale acknowledged the pressure on residents, businesses, and the community during her address to the crowd. However, she did not provide a guarantee of rate relief, which resulted in vocal opposition from the gathered protesters. According to the Mayor, the council faces a difficult balancing act between the financial hardship of residents and the necessity of addressing a $14 million operating deficit, alongside rising costs and requirements for water services.
What happens next?
The council is currently exploring options to mitigate the impact of the rate hike, including potentially utilizing a $1 million dividend from Whitestone Contracting. While this move could leverage easing inflationary pressures, it carries financial risks. A significant hurdle remains the 30 June statutory deadline for setting rates; missing this date could complicate the council’s financial planning. Councillors previously considered hikes ranging from 19 percent to 45 percent in May to address the deficit, and the final decision will likely continue to be shaped by the tension between these long-term fiscal requirements and immediate public opposition.
