Council rates cap

The story so far

The Government announced plans to cap annual council rates increases at a maximum of 4% and a minimum of 2%, with the cap due to take effect in 2029 and the range reviewed every six years.^{25 Aug} Councils are expected to consider the target range from next year.^{25 Aug} Waikato mayors criticised the cap, with one saying the government must provide a solution for the financial pressures and another pointing to the irony of the restrictions alongside proposed amalgamation costs.^{27 Aug} Waitomo's mayor said the rules would not significantly affect his district, as the council had kept rates rises below 4% in four of the last six years.^{7 Sep}

Latest

Wellington City Council has proposed $25 million in cost-cutting to meet a 4% cap, including reductions to Te Papa funding, community library services and school swimming subsidies, and its deputy mayor said it needs to find $60 million in savings in total.^{6 Oct} A Public Service Association report estimated that the 25 largest councils could face billions in losses, with budget cuts and higher user charges, while Hamilton City Council officials said an $833 million loss figure is only one possible scenario.^{22 Oct}

Key moments

1. 25 AugGovernment announces a 2% to 4% cap on annual rates rises from 2029.
2. 27 AugWaikato mayors criticise the cap and call for government solutions.
3. 7 SepWaitomo's mayor says the cap won't greatly change his district.
4. 6 OctWellington proposes $25 million of cuts to meet the 4% cap.
5. 22 OctPSA report warns of multibillion-dollar losses across the 25 largest councils.

Written from the stories below; each sentence links to its sources.