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Home / Whanganui Chronicle

Low rates hike just the calm before the storm

By Simon Waters
Whanganui Chronicle·
4 Apr, 2017 06:09 PM3 mins to read

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City rates are proposed to rise 1.9 per cent.

City rates are proposed to rise 1.9 per cent.

Ratepayers celebrating the lowest proposed rates increase in over a decade may find it is just the calm before the storm.

The Whanganui District Council plans to increase rates by 1.9 per cent on average, hailed by councillor Rob Vinsen as a "victory for the ratepayer" and the lowest increase in 12 years.

But celebrations might be short-lived.

"My advice to ratepayers is enjoy it while it lasts," he said at Tuesday's meeting of the full council.

Costs associated with the waste water treatment plant will kick in next year and a corresponding large rates increase is expected then, he said.

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"The problem we have got is that next year the real effect of the waste water treatment plant will come into effect because the operating costs of it will have to be allowed for. This year it's only the debt and the servicing of that debt," Mr Vinsen said.

"My advice to ratepayers is enjoy it while it lasts. Because next year there's going to be a very severe increase in rates to cater for this waste water treatment plant."

Mr Vinsen joined Mayor Hamish McDouall and several councillors in congratulating council's chief executive Kym Fell and the senior management team on holding rates by as much as was proposed.

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"This is actually a very good annual plan. It's a victory for the ratepayer. The overall rate increase of 1.9 per cent is actually the lowest rate increase for the last 12 years," Mr Vinsen said.

Mr McDouall warned that properties in St John's Hill and Springvale will likely face slightly higher rate increases due to the homes in those areas rising more in value than homes in other suburbs.

Annoucement of the rating increase came as council released its Annual Plan Consultation Document which highlights some of the works council plans to carry out over the next year.

Submissions to the plan open Monday and remain open to 4pm on May 10 after which the plan will be debated and finalised.

Mr McDouall said it was possible the final rate increase could change slightly depending on the outcome of submissions and if any changes are made to the proposed plan.

The consultation and supporting documentation will be available on council's website (www.whanganui.govt.nz/annualplan) along with submission forms, which can also be requested from council in person.

The draft plan will be advertised across social media, in newspaper inserts, at a stall at the riverside markets and through workshops with stakeholders.

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