"STDC is still working to reduce further and is likely to have a 2.84 per cent total average rate increase when we go out with our 2022/23 Annual Plan early May."
If that reduction became reality, South Taranaki would be bettered only by Waitomo and the Chatham Islands, which LDR found have proposed two per cent and 2.5 per cent rises respectively.
The proposed South Taranaki rates rise is currently fifth-lowest, so it could be pipped for the bronze medal by any of about a dozen councils proposing rises of around four per cent or lower, if they made deeper cuts.
The impact on individual ratepayers is unclear, as it depends on how much their property has increased in value compared with other properties in the district.
"We have had a district revaluation in September last year, which complicates things, which is why we aren't yet ready to go out with the Annual Plan."
The annual plan is due in early May.
Taranaki Regional Council has proposed a 7.9 per cent rates rise, the same as neighbouring Waikato and bettered only by Southland and Bay of Plenty with five per cent and three per cent respectively.
The rise is an increase from the 10-year Long Term Plan (LTP) adopted last year, which predicted a 5.5 per cent rise.
TRC's corporate services director Mike Nield told councillors in February that no significant changes had been made to the LTP, but the rates increase was due to a volatile and changing political environment.
He said the implications of change were becoming clearer in fresh water, the Resource Management Act, partnerships with Māori, Three Waters reform and the future of local government.
"We're conscious that we want to minimise that increase and we are working on one or two options that may result in us being able to reduce that 7.9 – but they're not concrete yet."
Nield said inflation so far had mainly affected capital projects, which for TRC was "not huge," but that next year's rates might well be hit by wider inflation.
Other councils are already taking inflation into account.
Stratford sits at 34 out of the 67 district councils with its 6.41 per cent proposed rise, closest to the national average of 6.48 per cent.
Stratford District Council corporate services director Tiffany Radich told councillors all income and spending had been reviewed in light of expected inflation.
She said inflation was likely to hit via "infrastructure costs, staff wage pressure, regulatory changes, and insurance, audit fees, and other administration and general price increases across the board."
New Plymouth's seven per cent rates rise comes after the council decided to stick with what was projected during last year's LTP process.
Craig Stevenson told councillors average residential rates will rise 5.5 per cent, which is below inflation.
"We tried to maximise bang for buck and deliver a plan that does not exceed the [LTP] projected rate increase, which was seven per cent."
Like Stratford, New Plymouth council officers have found small reductions in spending across the board.
But Stevenson, the Mayor Neil Holdom and a number of councillors say the budget assumptions are likely to be optimistic and New Plymouth's budgets could be in deficit for the next two years.
NPDC is considering triggering measures for rates postponement and remission of penalty fees to help businesses survive pandemic and inflation pressures.
*Public Interest Journalism funded through NZ On Air
