Photo: RNZ / Mark Papalii
Mayors say complying with a 4 percent rates limit is achievable, but will require tradeoffs - and could mean higher fees for things like parking, libraries and pools.
The government on Monday announced plans for a rates cap, with a 4 percent maximum increase based loosely on long-term growth over the past 35 years, and a 2 percent minimum based on midpoint of the Reserve Bank's own target band for inflation.
The band would be reviewed every three years, but it was unclear what any change might be based on.
Councils' adherence to the limits would be monitored from 2027 and strictly enforced from 2029 - with the minister threatening to intervene before then if councils did not toe the line.
With the government having talked about the idea for months, Central Otago mayor Tamah Alley said the policy was no surprise and would likely appeal to the community - who wanted to see rates kept under control.
"It will work to reduce the rates rises. Will it work to provide the best services to our communities, to meet their wants and needs? Maybe, maybe not.
"It will mean that we are saying no to our communities more often and it will mean that we are deferring projects that they wanted to see go ahead - but that might be okay if it means t
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