Rates proposals push farmers to edge

Rotorua Daily Post, 23 May 2015
Concerned landowners say some are on suicide watch over hikes in costs.
Some Rotorua dairy farmers are facing huge rates rises, on top of falling dairy prices, leaving a few of them on suicide watch.

They are warning Rotorua’s urban ratepayers they could also face a rapidly expanding rates bill when the next round of property valuations come into effect in two years’ time.

Their rates increases come as part of the Rotorua Lakes Council’s Long Term Plan proposals that are signalling an average rates increase of 7 per cent across the district.

The plan sees the average business rate increase by 11 per cent, farm rates up 19 per cent, residential rates up 6 per cent and rural residential rates up 8 per cent.

Council officials say some dairy farmers will face higher than average rates increases due to property valuations which valued their land higher than in previous years. And there will be other farmers paying less rates than they did last year.

However, Kaharoa dairy farmer Lachlan MacKenzie says the council’s financial plans do not add up, saying his rates bill will go up by 69.5 per cent, from $11,000 to $19,000.

“Many of us are disputing our valuations, but we haven’t heard back. If my land value goes down, the council will have to give me a refund.

“People in town won’t suffer as much this year, but when valuations come out in two years’ time and our land values plummet they will be the ones having to foot the bill,” he said.

Mamaku dairy farmers Jack and Shelley Butterworth say they are up for a combined 45.7 per cent increase. This is on par with Wendy and John Roe’s 43.8 per cent increase at their Mamaku properties.

Mr Butterworth said if the council’s financial team were working in the corporate world they would not last long.

And most of the councillors who agreed to all of this mess caused in the last few years are still on council and have a very poor understanding of where their money’s being spent,” Mr Butterworth said.

Mrs Roe said if the council could not balance its budget it should not continue spending.

Mr MacKenzie said they were seriously concerned about the welfare of some of the district’s farmers.

A few of those were on “suicide watch”.

“This rates increase, on top of a regional council rates increase and falling dairy prices, could just push them over the edge.”

Rotorua Lakes Council chief financial officer Thomas Colle said farming rates increases had been amplified by changes to capital values and proposed changes to the Uniform Annual General Charge (UAGC).

“As with any average, there will be variations in how much or how little someone’s rates increase – or decrease – and many factors come into play, including revaluations, changes to rating differentials and the UAGC – which is the tool we use to determine how the rates take will be distributed among the various property type groups.

“If what’s proposed is adopted, rates for some farmers would decrease.

“Because of the factors involved there’s no one-size-fits-all answer to why someone’s increase may be well above the average, but we are happy to speak to anyone who wants us to talk them through it,” Mr Colle said.

Last year’s revaluations saw the total value of dairy property within the district rise on average 20 per cent, with 70 per cent of properties moving up by between 15 and 35 per cent.

– For more information on the Long Term Plan or to find out about how to make submissions on the plan, go to the website www.rotorualakescouncil.nz and click on the Long Term Plan link.