COVID-19 appears to have had little impact on property owners’ ability to pay their rates with the three Eastern Bay district councils collecting a similar percentage to last year.
There has been discussion around the Opotiki, Kawerau and Whakatane council tables that the Covid-19 economic downturn may result in councils collecting less rates as people struggle with their finances.
Although the final rates take for the 2019-20 financial year was good, council staff speculated the worst was yet to come.
Opotiki District Council received 88 percent of the rates payable for last quarter and Kawerau District Council received 97.1 percent.
Whakatane District Council did not provide figures for the quarter but said it had received 87.38 percent of its rates payable for the last financial year.
Opotiki council finance and corporate services group manager Bevan Gray said the final rate take was consistent with previous years.
The Opotiki council had been encouraging ratepayers to get in touch with them directly to work on payment plans or talk through their issues.
He said there had only been one request for rates postponement since lockdown, but the council expected the full financial impacts of Covid-19 to be felt in the community in the next financial year.
“That is why council’s planning is focused on getting further traction with existing projects and new initiatives with long term economic benefits and sustainable employment for the community,” he said.
“Opotiki council is taking a long-term view of the Covid-19 crisis and the impact it will have on ratepayers — this isn’t about just a single quarterly payment; it is about long-term economic recovery in the district.
“Long term trends may be a more useful metric as many in the community have had continued income through the level three and four national rahui through the wage subsidy scheme.
“So, this quarter, rates invoices can be paid as any other household cost. However, for households that have lost jobs or faced reduced wages, it is likely to be a longer-term matter. It makes our role in recovery and the development of strong resilient industries and new infrastructure in the district and the jobs that go with that increasingly important,” he said.
Kawerau council finance and corporate services manager Peter Christophers said his council was pleased with its final rates take.
Kawerau collected 97.1 percent of its final rates by the due date but was still receiving additional payments throughout May.
This compared well with the 97.35 percent of payments collected for the final rates instalment in the last financial year.
Due to the Covid-19 pandemic and the potential for ratepayers to have been financially impacted, Kawerau council had offered ratepayers the opportunity to spread out the fourth rates instalment over the coming year without incurring any penalties.
“Less than a dozen ratepayers took up this offer, but most were keen to pay off the fourth instalment within two to three months rather than extend payments over the 12-month period,” Mr Christophers said.
“The payment of the fourth instalment has been pleasing particularly from the perspective of the council being able to continue to provide the expected level of services to the community.
“We are, of course, uncertain if there will be any further delayed impacts from Covid-19 on Kawerau ratepayers.”
Whakatane’s year to date rate instalment payments is nearly identical to last. This financial year, the council collected 87.38 percent of its total rates take compared to 87.64 percent in the year previous
Whakatane council communications and engagement manager Alexandra Pickles said rates staff worked proactively to assist ratepayers directly impacted by Covid-19 during this instalment.