Economic growth over the past 12 months means the Wanganui District Council has been able to cut back its planned rates take.
And while that's good news, council financial managers predict similar growth for the next 12 months as well.
In the last financial year the district has experienced overall growth of $61 million, the biggest increase in at least a decade. And there has also been growth in the residential sector, with over $37 million of activity, driven by 49 new houses as well as improvements to existing homes.
For ratepayers this means the overall rates level signalled in council's 10-Year Plan has been cut from 4.1 per cent to 3.8 per cent. The residential rate will drop from 3.7 per cent to 3.5 per cent, the commercial rate from 5.1 per cent to 3.9 per cent and the farming rate from 7.9 per cent to 7.4 per cent.
Mayor Annette Main told yesterday's council meeting that the news was "very significant".
"Knowing there had been growth happening I thought things might be looking better but it wasn't until today that we found out just how it would impact on rates we'd strike this year," she said. "It shows we're making progress and it shows what we can achieve if we focus on growth. But it has to continue."
Ms Main said the economic impetus reflected growing confidence in Wanganui. "And when we talk about business moving to the regions and growth happening in the regions then this is an indication it's starting to happen. It bodes well for us."
She said the drive had come from both commercial and residential sectors in the district.
"We've seen commercial growth throughout the whole district, but in particular in new developments such as the Briscoes and Rebel Sports complex, the new Farmers building and in the two new service stations recently built."
She said while residential housing was becoming increasingly unaffordable in other parts of the country, "we live in a district where, not only is our commercial sector growing, but ordinary people can afford houses".
She said it was still early days in terms of economic growth but the council's economic development arm (Whanganui and Partners) would continue its work to bring more businesses and innovation to the district.
"The whole community benefits when we see sustainable growth."
Julian Harkness, council's deputy chief executive, told the meeting the growth rate was the "best recorded in a decade" and it was on track to continue in the coming 12 months as well.
He said the Open Country milk plant upgrade was not included in the latest data - another major project that will impact in the next financial year.