Rates have been struck for the next year amid hopes for better ways to fund councils.

Whanganui District councillors met on Thursday to confirm rates, with a 4.2 per cent average rise across the district, for the financial year from July 1.

Notices will be posted next month.

Ninety-one properties added to the district over the past year will help contribute to the $67.5million collected by the council for the year.


The capital value of the district has increased by $70m up to $6.8b with $53m of the increase coming in the residential sector.

Council finance general manager Mike Fermor said council needed to balance keeping rates down with paying off debt in key areas like stormwater and roading.

"Which I think makes it sustainable, which is great," he said.

"These rates ensure that we have adequate loan repayments with those areas."

Whanganui mayor Hamish McDouall said it was timely there was a Government-led "in-depth study on the way local government is funded".

"We've got people who know what they're doing, I hope, and I've committed to pursuing ways other than rates to fund local government - that's not excluding rates - but other ways," he said.

"Having just attended the local government conference and hearing some fairly eye-watering figures coming from other districts, I think we're doing quite well."

Deputy mayor Jenny Duncan reminded residents there was a rates rebate available for low income people.

"So [there is] a strong encouragement for our ratepayer base to do that," she said.