Even with a significant decrease in its rating increase Tararua District Council will deliver all the services planned, chief financial officer Raj Suppiah says.

The final rates increase signalled in the annual plan for 2016/17 is 1.71 per cent, significantly less than the 2.9 per cent increase forecast in the long-term plan, and Mr Suppiah said it was consistent with the council's financial strategy of affordability and financial sustainability. It is, however, a slight increase on the 1.61 per cent indicated in the draft annual plan.

It's a very sane and sensible annual plan and without being stupid we are getting things done.

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Speaking at last week's district council meeting, Mr Suppiah said the council would invest $13.9 million on infrastructure and although this was up from the $11.8 million originally in year two of the long-term plan, it was largely the result of a $1.45 million investment in the expansion of Saddle Rd, fully funded by the New Zealand Transport Agency.

The council will also make a modest increase in promotion and development spending.

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"We have met all our benchmark measures and we can borrow up to three times our debt levels if wanted, and this shows we have a strong balance sheet," Mr Suppiah said.

Tararua District mayor Roly Ellis was impressed with the annual plan.

"It's a very sane and sensible annual plan and without being stupid we are getting things done."