Rates rise lower than tipped

Masterton ratepayers will face a 2.6 per cent increase in rates next year - lower than previously expected.

The district council approved the draft annual plan for 2013/14 last Wednesday.

Last year's long-term plan indicated an increase of 4.5 per cent for the 2013/14 year.

The split between urban and rural rating areas will see rural rates increase by an average of 1.9 per cent and urban rates by 2.9 per cent.

The local authority's term debt is expected to be $51.7 million, which is $1.7 million less than the plan predicted.

This reduction has translated into lower costs of servicing the debt and the council has also been able to take advantage of the continuing low interest rate environment.

Mayor Garry Daniell said the council predicted it would be able to reduce the increase after the initial construction period of the wastewater project was completed.

"The fact that we have been able to reduce this even further is a real testament to the councillors, staff, contractors and ratepayers of the district," Mr Daniell said.

"It has been a real team effort and we have all tried hard to keep the figure as low as possible.

"The acceptance by our ratepayers that new infrastructure was necessary has been vital in ensuring that we are able to plan for future generations," he said.

"We must also be mindful of the prudent cost cutting by our managers, who have trimmed spending without reducing service levels and in many cases actually been able to increase service levels by introducing new efficiencies."

The council was able to hold down the increase mainly as a result of cost savings generated from having lower project costs on the Homebush sewerage plant project.