Whanganui District Council rates lower than expected for 2022-23

New residential properties in Whanganui have led to greater than expected growth and a reduction of the projected rates rise for the year ahead. Photo / Bevan Conley

Whanganui District Council has set a rates increase of 3.5 per cent for the year ahead.

The increase is lower than the projected increase of 3.9 per cent due to higher than anticipated growth valuations.

At the council meeting on Tuesday, July 12, senior finance officer Simon Manville said the rates were set based on valuations as of June 30 each year.

He said QVNZ captured building and subdivision data right up until that date to ensure the most up-to-date data was used for rating.

Significant growth in the residential sector had amounted to a rates return of almost $576,000.

Manville said 51 new properties in Gonville, and a number of others dotted around the city, had boosted the growth during the last month.

"That's a good news story," he said.

"That reduces the amount for other ratepayers. It means there's some growth happening around the city and that's going to help the future years."

Mayor Hamish McDouall said the increase was lower than that of Auckland Council which increased rates by 3.6 per cent for the year.

The rates resolution report delivered by Manville included various water rates, firefighting, exotic forestry properties, earthquake strengthening, roading and footpaths, and trade waste contributions to the city wastewater treatment plant upgrade rate.

Councillor Rob Vinsen commended council officers for the excellent work they had done with trade waste contributors since a new bylaw was introduced in 2018.

"It has proved to be relatively uncontroversial and everyone has been treated fairly," he said.

The council is required to set its rates each year by resolution in accordance with section 23 of the Local Government (Rating) Act 2002. The rates must be set in accordance with the relevant provisions of the council's long-term plan and funding impact statement for that financial year.

The council adopted its amended long-term plan for 2021-2031 and annual plan for 2022/23 on June 29.

The rates resolution stipulates rates demands will be issued by August 1 and a discount of 2.5 per cent will be allowed on all rates paid in full by August 31, 2022.