Unpaid rates owed to Porirua City Council have more than tripled in four years, rising from $1.3 million in the 2021–22 financial year to $4.5 million by the end of the 2024–25 financial year.
The increase was highlighted in a financial update presented to councillors at the Te Puna Kōrero committee meeting on March 5.
A council spokesperson confirmed the figures in the report represent unpaid rates recorded at the end of each financial year.
“The trend shown in the report is concerning and shows that many in the community are hurting in the current economic climate,” the spokesperson said.
The finance report states overdue rates debt “continues to rise faster than expected”, with penalties applied to late payments already reaching $560,000 in the first six months of the current financial year.
The spokesperson said Porirua City Council does not currently have a hardship policy for ratepayers but has seen an increase in residents requesting payment arrangements.
Asked what support was available for ratepayers struggling to meet payments, the spokesperson said residents should first check whether they are eligible for a rates rebate.
“Firstly, we would encourage them to apply for a rates rebate. If they are on a low income they may be eligible. We also encourage ratepayers to use a direct debit to make regular payments to avoid getting behind and incurring penalties. Lastly we would encourage ratepayers to talk to their bank if they have a mortgage about options they can offer to clear outstanding debts.”
The figures come as economic conditions in Porirua have weakened. A council growth report presented to the same committee meeting found the city’s economy shrank by 2.1 percent in the year to December.
Councillors received the finance report as part of the committee’s regular monitoring of the council’s financial performance.
