Rangitīkei District Council proposes double-digit rates hike for 2024/25

Sprucing up Marton's town centre has a price tag of $2.1 million. Photo / Bevan Conley

Rangitīkei ratepayers are facing an average rates rise of 11.5 per cent this year and an 8.9 per cent increase the year after.

The numbers are part of the Rangitīkei District Council’s draft Long Term Plan (LTP), which went to public consultation last week.

Rangitīkei Mayor Andy Watson said it was a huge struggle to stretch the council’s budget and roading costs were a major concern.

“We will be spending $164 million on roading [over the next 10 years], and although we are blessed with a reasonably good Far [funding assistance rate] from the Government, there is still the struggle for us to match our share,” he said.

“With climate change and forestry, the impacts on our rural roads are substantial.”

New Zealand Transport Agency Waka Kotaki’s Far for Rangitīkei is 63 per cent, meaning the council would potentially need to provide $62.7m for roading over the next 10 years.

A further average rates increase of 10.6 per cent is proposed for 2026/27, but that depends on the rollout of the district’s kerbside collection service.

That is one of three “key choices” in the public consultation, along with keeping the Marton Pool open all year round and revitalising Marton’s town centre.

Keeping the pool open all year will cost an extra $357,000 per year and the revitalisation project has a price tag of $2.1m.

Watson said the council’s preferred option was to keep the pool operating seasonally.

The revitalisation project would be paid for through debt funding, with $100,000 to develop a plan in 2024/25 followed by $2m for construction in 2026/27.

Two options have been presented for the kerbside service - starting organic waste, landfill waste and recycling collection at once in 2027 or starting recycling in 2027 and organic waste in 2030.

A council-run landfill waste collection service is not featured in the second option, with residents using separate contracts.

If the second option is preferred, the rates increase for 2026/27 would be 9.7 per cent.

Rangitīkei Mayor Andy Watson says rising council debt isn't unique to Rangitīkei. Photo / Bevan Conley

Watson said the affordability of rates was important and he was well-aware remunerations farmers were receiving for their products had dropped.

Primary industries make up the largest proportion of the district’s GDP, at 29.9 per cent.

“Interest rates are higher and their [farmers’] compliance issues are substantial as well, then we hit them with higher rates.

“Everybody in the country is hurting.”

He said Rangitīkei was “sort of middle of the pack” when it came to rates rises across the country.

In Whanganui, the average rates increase could be 14.8 per cent in 2024/25, while Horizons Regional Council ratepayers are set for a 12.9 per cent increase.

“We are not a rich council, and we have a huge land area with multiple towns that we need to support,” Watson said.

“The challenge of the Government’s change of position, whether it be Three Waters, Resource Management Act reforms or the GPS (Government policy statement) on transport - all of these things make it more difficult for us to get to a position early enough.”

According to the consultation document, the council’s debt will rise from $102m to $150m over the next 10 years.

That situation wasn’t unique to Rangitīkei, Watson said.

“Basically, our towns and cities were built the best part of 100 years ago with materials that were right for the time.

“They were all right for 70 or 80 years, then suddenly you start to get major blowouts.”

Consultation on the LTP is open until April 7.

Watson said he had around 20 public meetings around the district before that.

“I urge people to attend. We do want to listen.”

Mike Tweed is an assistant news director and multi-media journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present, his focus is local government, primarily Whanganui District Council.