Government changes to water and waste levies will push up rates

LGNZ is concerned potential changes to waste and water levies will negatively impact ratepayers, at a time when many are struggling financially.

The Government has recently announced it will impose a levy on councils for the new regulatory regime for Local Water Done Well, which includes funding for Taumata Arowai and the Commerce Commission.

This week councils also learnt that Treasury is pushing to de-hypothecate a levy that is part of the Waste Minimisation Act, which has been one of the only funded mandates from Government.

This would mean councils receive 75% less income from the waste levy and container return scheme, potentially resulting in either cuts to essential community services such as recycling or increased pressure on rates.

LGNZ President Sam Broughton says that the impact of these measures on individual councils and each household’s rates bill can’t be ignored.

“Councils are constantly balancing the long-term interests of their ratepayers against their financial sustainability and are having to go line by line through their accounts to find savings.

“Unfortunately, the stream of unfunded rules and responsibilities imposed by successive governments makes achieving this balance even more difficult – and costs councils millions every year,” says Sam Broughton.

Tasman District Mayor Tim King says that while a final decision on the Waste Levy reduction has not yet been made by Government, the potential impact is very concerning for his council.

“If this goes ahead, Tasman District Council projects that an additional $850,000 will fall on ratepayers from the two new levies, combined with the loss of the waste levy.

“That projects to be an additional $33 per property across our 26,000 rating units, with this falling mostly to urban households.

“So, the financial impact of this cost is significant for us and many other councils around New Zealand, especially as this income is used to deliver core waste and recycling services to the community.”

Sam Broughton says that LGNZ are seeking two key actions from the Government to support ratepayers.

“We want a clear commitment from the Minister of Finance that she will not de-hypothecate the waste levy funding and will maintain the 50/50 split that the Government committed to in the 2024 budget.

“We also want the Government to confirm a sharing of costs for the new regulatory regime for water.

“Clean, safe drinking water is enjoyed by all New Zealanders as well as the tourists who visit our beautiful country – not just the ratepayers in each community.”