Roading cuts push rates up 3.7pc

Carterton ratepayers can expect a 3.7 per cent increase in the average rate demand for the 2015-2016 year.

The Carterton District Council flagged the proposed increase in its consultation document for the 2015-2025 Long Term Plan, which councillors approved at a special meeting last week.

The proposed increase does not mean all ratepayers will pay the percentage increase, with rate allocations to individuals varying greatly depending on factors including location, land use and property value. General rates based on capital values are set to rise 3 per cent across the board for residential, rural and commercial properties.

Council chief executive Colin Wright said rates had increased due to the cut in the NZTA roading-subsidy rate: "That's a big part of why the general rate has gone up, because we fund our roading out of general rates ... our roading subsidy rate has dropped by 1 per cent so we have to find the other 1 per cent that they used to pay."

The council expects to spend $1.79 million of capital expenditure on roads, footpaths and bridges in the next year.

Mayor John Booth said the financial numbers in the proposed Long Term Plan were based on "maintaining business as usual".

"There are some significant exceptions though. We are continuing an accelerated programme of sewer mains renewals, we are expanding sewage treatment and disposal capacity ... and we are further developing the town centre, with Broadway the next refurbishment planned."

Sewerage reticulation should cost about $850,000 over and above the usual costs during the next three years, the sewage-treatment facility at Daleton Farm is ear-marked to need $1.7 million over the next 10 years, and the town centre upgrade is expected to cost $500,000.

Important resource consent renewals were also expected to add up, with consents for the water supply and sewage treatment tipped to come in at a combined $650,000. The council also plans to increase urban sewerage rates to $486.01 for connected properties, an $82.62 increase on the 2014-2015 year.

In addition, the urban water allowance will be reduced from 300cu m to 225cu m a year, although fees for excess use will fall from $1.90 per cubic metre to $1.70 per cubic metre. The flat fee for urban water connections is set to drop from $496.97 to $477.

Submissions on the Long Term Plan are open until 4pm, June 9.