Masterton rates take to rise 2.9 per cent

Examples of rate increases for 2015/16 are included in a consultation document for the proposed Masterton District Council long-term plan, which will soon be available to the public.

The overall rates take for Masterton district is expected to increase by 2.9 per cent when the rates for the next financial year are struck.

This is the percentage increase proposed in the Draft Long Term Plan (LTP) which is a 10-year document due to be signed off after public consultation at the end of June.

Rates would then rise by 2.6 per cent the following year, 3.1 per cent in 2017/18 and by 3.3 per cent, 3.4 per cent and 3.7 per cent in succeeding years before beginning to tail off in 2021/22.

By the end of the 10-year period - being 2024/25 - the overall rate increase is expected to be 2.5 per cent for that year.

The proposed yearly increase does not mean that all Masterton ratepayers will pay the percentage increase, with rate allocations to individual ratepayers varying greatly depending on several factors, including location, zoning and land use.

Examples of rate increases for 2015/16 are included in a consultation document for the proposed long-term plan which is soon to be available to the public.

Agreeing to the adoption of the Draft LTP at a special meeting yesterday, councillors accepted council costs are increasing along with central and regional government expectations.

Despite this the council is trying to keeps rates affordable and had kept a lid on increases in its overall financial strategy.

The limit is that rate increases will be kept within the Local Government Cost Index plus one per cent.

Rates make up 68 per cent of the council's operating revenue, with the remainder coming from roading subsidies, interest on money the council has invested, and user fees and charges.

Due to be scrapped is the council's offer of a prompt payment discount on rates paid in full.

With low interest rates prevailing in the economy, the 2.5 per cent discount was ending up a cost to other ratepayers and in recent years had been taken up by only a handful of ratepayers.