Aramoho ratepayers brace for Whanganui district’s biggest rates rises

The suburb of Aramoho, as seen from the Roberts Ave hill. Photo / Bevan Conley

Aramoho ratepayers aren’t thrilled at the thought of paying an extra $550 per year in rates, but there’s nothing anyone can do about it.

The suburb is set for a 19.5 per cent rate increase, with Castlecliff not far behind at 18.7 per cent, after Whanganui District Council confirmed the 2023-24 rates.

Roberts Ave resident Esther Newrick said she was shocked and surprised by the rise.

Her house and contents insurance had increased by around 25 per cent recently, with her car insurance going up 20 per cent last year.

“Having other things increase is a bloody pain in the arse,” Newrick said.

“The rates must have doubled in the time I’ve been here - coming up [on] 12 years.”

The council is permitted to charge 30 per cent of rates on a fixed fee per property (uniform annual general charge).

General rates are based on land value.

Aramoho and Castlecliff average land values have risen by 148 per cent and 143 per cent respectively since the last valuation in 2019.

Newrick said an average rise of $552.81 meant some would be paying more than that.

“I really hope I’m not one of them.

“Are we getting anything for the extra $550 a year? I don’t think [the council] are putting more things in down our way.”

Fellow Aramoho resident Sarah Tyler agreed with Newrick.

Many people in the suburb didn’t have a lot of money but would have to “find it from somewhere” - not an easy task for those on lower incomes.

“It’s not like Aramoho has had any council investment in it to account for the rates rise - nor will we, I imagine,” Tyler said.

“There’s obviously a cost of living crisis at the moment, and then your rates go up as well.”

Tyler, who is only able to work part-time, said she would need to revisit her budget as a result of the rates rise.

She said Whanganui’s council, along with others, should “get the wheels in motion” to change the way local government was funded.

“Other councils surely have to deal with this as well.”

Whanganui Budget Advisory Service manager Sandy Fage said most of the homeowners she saw were on superannuation.

Their income couldn’t be tweaked so their outgoings had to be, whether that be changing power, internet or insurance plans, she said.

The community was well past the point of cutting out “the four coffees a week”.

“For me, I’m not so much worried about our homeowners as people who are renting because, potentially, the rent is going to go up. Like everywhere else, rent is already far too high,” Fage said.

“Landlords are going to have to pay bills - which is the rates - so it definitely has a flow-on effect.”

Whanganui District councillor Charlotte Melser. Photo / Bevan Conley

A report from the Review into the Future for Local Government recommended an annual transfer of revenue equivalent to the GST charged on rates.

In Whanganui’s case, that amounts to around $10 million.

Whanganui Mayor Andrew Tripe told the Chronicle last month the rates system wasn’t working and the council didn’t have enough money “to do the things we need to grow and sustain our community”.

Whanganui District councillor and Castlecliff ratepayer Charlotte Melser said how rates were divided was out of the council’s hands.

High inflation meant there was always going to be a big rates rise, but the land valuation increases in lower-income suburbs meant it was a “double whammy”.

“It’s a really, really unfortunate series of events, and there is a lot of misinformation going around that the council is money-hungry and taking what we can.

“We stripped back that budget as much as we possibly could without cutting services or staff.”

Fage said one client, a ratepayer, moved their mattress into their living room during winter to reduce their power bill.

“She has figured out what works for her, which is really good, but it’s a shame she has to do that to make it work.”

Melser said personally, the rates rise would have an impact on her household.

“I’m a solo mum on an elected member’s wage, which is not huge. Despite what people think, we don’t get paid very much.

“I also think we are incredibly lucky with our parks and amenities, like the Splash Centre and libraries.

“We have some exciting projects under way as well. The timing of these projects is obviously very difficult financially, but the Sarjeant Gallery and the port are both massive for Whanganui.”

“Nice-to-have” insurances - contents, car, life - were often the first to go when it came to saving money, Fage said.

“With something like car insurance, we always say not to cancel it - just contact the company and go down to third-party. You still need some kind of cover.”

She said quite a few homeowners came to the service, but she expected more as a result of the rates increase.

“We all know costs go up very quickly, but it changes going down.

“Food prices might not keep on going up, which would be good, but I can’t see them falling.

“Lettuces won’t cost us $1 again.”

Mike Tweed is an assistant news director and multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.