Press Release
From: the Tokopiki Boundary Change Group

Boundary move a significant game changer

An overwhelming majority of the 120 people who attended two meetings held in Opiki and Tokomaru in July signalled their support for the Tokopiki Boundary Change Group’s proposal to bring those areas into Palmerston North City. The events were independently chaired by Rangitieki MP Ian McKelvie, with presentations by PNCC’s strategy manager finance Steve Paterson and the group’s committee members. Local residents and ratepayers were given a chance to voice their escalating concerns over high rates and lack of services and amenities compared to other communities within the Horowhenua District Council.

Disputing an article by HDC group manager Doug Law published in the Horowhenua Chronicle 20 July 2018, Tokopiki group spokesman Arthur Toms said their proposed boundary change was thoroughly researched before making any public announcements. He quotes an example verified from the HDC rates database and PNCC officials:

1. A 180ha farm with a land value of $6 million would save $6,954 or 41% by moving the Opiki/Tokomaru boundaries into PNCC. Overall, the current rural differential rate in Palmerston North would be more favourable than the differential in Horowhenua.

2. Palmerston North has a Uniform Annual General Charge of $690. Although this is a separate charge, it is part of the total rates and is allowed for in our calculation.

3. Mr Law is correct in stating that Palmerston North’s rates are set using a value-based rating system which could disadvantage large farms with a high land value. The fact remains that the current rural differential in PNCC is more favourable than the differential in Horowhenua, producing savings of 41% in our example.

4. Federated Farmers supports targeted rates so that rural ratepayers don’t pay for services such as town drinking water supply and sewerage they don’t have and are only available in urban areas.

5. Mr Law’s statement that Palmerston North City Council rural differential could change at the next rate review could also apply to the Horowhenua District.

6. Even if PNCC rates in our example went up 50%, ratepayers would still only be paying 90% of current HDC rates.

HDC chief executive David Clapperton recently advised a Tokomaru township ratepayer that if it hadn’t been for ‘harmonisation’ they would have to pay rates of $4,692 pa (currently residential $2,376.28) for the small B-grade drinking water and proposed sewerage upgrades. Mr Toms goes on to question whether Shannon’s substantial town drinking water and wastewater upgrades are also ‘subsidised by Levin ratepayers,’ as Tokomaru ratepayers are told. “HDC rates in other parts of the District, especially in Levin, are demonstrably lower than rates for farmers, lifestyle blocks and residents in Opiki and Tokomaru. So who’s subsidising who?” he asks.

A lack of access to Horowhenua District Council services and amenities further confirms an important community of interest for Opiki and Tokomaru residents and ratepayers, who have closer ties with Palmerston North rather than Levin. But already devolved Opiki/Tokomaru services to Palmerston North, i.e. Tokomaru library in 2015, toll-free calls and post via the PN mail centre, were all paled last month by a Horizons Regional Council survey. In asking Horowhenua District passengers how they rated their bus services in Waiterere Beach, Foxton, Foxton Beach, Himatangi, Shannon and Levin to Palmerston North and Wellington, there was no mention of Opiki and Tokomaru in the survey – who are not even in the Horowhenua District, according to the map!

Still talking relevant comparisons, Steve Paterson said that PNCC’s debt is currently $100m for 87,000 people with borrowings of $300m anticipated in the next 10 years. He indicated the $140m scheduled funding for Palmerston North wastewater would not be applicable to Opiki and Tokomaru ratepayers if they joined with PNCC. HDC’s current debt, indicated to have risen to $106m for a population of 32,000, is reported to escalate to $200m relatively soon.

In another July article, MP Ian McKelvie said: “In hindsight, the current alignment was possibly not in keeping with the direction which communities naturally relate to, but in the end it is for the people affected to make the final decision.”

The Tokopiki Boundary Change Group is continuing to pursue an application in accordance with the process set down by the Local Government Act. “Boundary changes taking Opiki and Tokomaru into Palmerston North City are well overdue,” Mr Toms said.

Press Release ends.