Rodney District Council has agreed its 2005-06 rates will rise by 6.5 per cent, or about $120 for an average property - blaming the pressures of being one of the country's fastest growing areas.
A list of projects to cater for growth, running at over 3 per cent a year,
had the council facing an average 10 per cent rise.
Mayor John Law said yesterday pressure was unrelenting and capital spending was trimmed from $98.3 million to $93.9 million by deferring some works. The council still expected a rise of $2.8 million in operating costs to $104 million, partly because of extra responsibilities passed on by Government. Mr Law was pleased the council managed to hold the debt level at about $1 to $8.30 of community investment.
Council finance director Kevin Ramsay said an upside was that this year there were 3 per cent more ratepayers to share the burden.
People whose property values had risen beyond the district average of 80 per cent in three years were more likely to pay higher than the average 6.5 per cent rate rise. A reason for the rates rise, he said, was that interest charges on loans for projects went up by $3.6 million, accounting for 9 per cent of council costs.
The council was aware it had to reduce debt levels, Mr Ramsay said, and had been vigorous in its review of capital works. This year's borrowing would be $37.7 million compared with the $40.8 million expected.
