Rangitīkei District Council approves average rates increase of 3.6 per cent

The Rangitikei District Council has reduced its 2020-2021 rates increase from a projected 6.27 per cent to an average 3.63 per cent. Photo / Bevan Conley

Rangitīkei ratepayers are facing an average rates increase of 3.63 per cent for the next financial year.

The Rangitīkei District Council approved the 2020-2021 annual plan, without having a formal submission process, at its June 25 meeting.

Rangitīkei mayor Andy Watson said in his mayoral report that it had been a difficult discussion with council balancing the desire to reduce rates demand against funding committed programmes and supporting the local economy.

"We started with a rating increase position of around a 3.6 per cent increase on average. We then adopted a series of cost-saving measures where all budgets were scrutinised and then we had to add back in such things as the additional allowance for the Bulls Community Centre and unforeseen costs such as the repairs to the Marton B and C dam walls."

Finance group manager Jo Devine said the 2018-2028 long term plan had indicated an average 6.27 per cent rate increase driven by a number of expenses, with the largest being the impact of the re-evaluation of the three waters (water, stormwater and wastewater) and roading assets.

A sub-group of councillors met earlier in June to look at costs and areas where savings could be made.

"We've gone through and looked at Putorino [landfill] remediation being spread over 10 years so even though the expenses occurred in the 2021 financial year the benefit to the community is over multiple years so we've spread the rates burden of that over 10 years," Devine said.

Jo Devine, group manager for finance at the Rangitikei District Council has been working with a sub-group of councillors on the 2020-2021 annual plan. Photo / Bevan Conley

The district planning changes also have benefits which will be appreciated over multiple years so related costs have been spread over five years, she said.

The changes reduced the rates increase to 3.63 per cent.

Watson said the reason the council did not hold a formal submission process was "like many councils it was done on the basis that we were following the long term plan or long term plan position with no major new works planned".

Executive office manager Carol Gordon said the council had instead planned to hold public meetings across the district to update residents on key projects and seek early input into the 2021-2031 long term plan. However, due to Covid-19 restrictions, this was unable to occur.

"The mayor and councillors have still committed to holding these public meetings and they will be scheduled for the second half of this year," Gordon said.

The budget sits at $33.580 million which includes adjustments of $4.6m which Devine said was predominantly for the Bulls Community Centre and ensuring there is sufficient funding for the Taihape amenities block and non-subsidised roading costs.

A newsletter will be drafted and sent to every household in the district to update residents on key projects already under way or planned for the coming year.

It will also include information on rates, what they will be spent on, changes to programmes and budgets due to Covid-19 and ways people can have their say on the council's 2021-2031 long term plan.