Ruapehu District Council has announced an average 3.5 per cent rates increase for the 2020-21 financial year, and mayor Don Cameron says a "significant consideration" had been how to respond to the impact of Covid-19.
"Despite calls for territorial authorities to have a zero per cent rate rise this year due
to the impact of Covid on some in our community, on balance council felt that
ultimately this would be more detrimental to ratepayers," he said.
"As council does not have reserves or alternative income streams to rates, if rates
income was to stop, so would council's spending on the essential services necessary
to keep our communities healthy, safe and operating."
Cameron said the council was required to manage the impact of Covid-19 and to upgrade its core infrastructure.
"A zero per cent rate rise would only delay critical infrastructure work and lead to a
double-digit rate rise for ratepayers in future years.