This is a warning to all New Zealanders. YOU ARE A TARGET. If you own your home, you will be hit with huge rate increases. If you rent, your landlord will pass on the rates cost. Councils are using TARGETED RATES to disguise increased charges. These are taxes for a specific purpose: for example, a new park to be named after the mayor, or other vanity projects that councils are so fond of.
Hamilton City Council has just proposed a 4.9% rates increase in the draft 10-year plan. Why 4.9%? Because they know that 5% or more would result in protests. In the fine print, there is passing mention of some new targeted rates.
While this is ‘publicly available’ information, not many people know where to look, and fewer have time to read it. We rely on journalists to investigate, but the local paper did not. I did.
Note 16 on page 13 of the 164 page report states:
If the rates option (including the four targeted rates) in the proposed plan is adopted, this would result in an increase to the total rates set for existing properties equivalent to 11.3% — more than double the ‘headline’ published by the daily rag.
There are some other serious issues such as debt still rising sharply in 10 years time, and relying on $392 million in development contributions despite a current court challenge that is likely to substantially change this.
No doubt other councils will be trying the same tricks.
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