Rodney slashes its planned rates rise

File photo / Glenn Jeffrey

Rodney District Council has approved a 3.9 per cent average rate increase for 2010-11 after flagging a 7 per cent rise.

"It's a no-frills budget and we've worked hard over three years to reduce rates," said Mayor Penny Webster, whose council is resisting joining the Super City and wants to become a unitary authority.

Last year's average rise was 4.9 per cent. It was tempered by a partial switch to rating on capital value after the previous year's 9.8 per cent rise and a revolt by business landlords over the impact of QV revaluations.

Mrs Webster is also confident of hobbling debt - heading towards $310 million - through the sale of surplus property.

Declining interest costs as well as a lower-than-expected bill for depreciation helped the council to avoid the 7 per cent hike.

A review of its $1.6 billion worth of assets showed some could prudently be expected to last longer and, accordingly, less depreciation has been allowed for their replacement.

The council will bring forward projects such as the $5.5 million removal of the Silverdale oxidation ponds, which are now adjacent to a developing suburb.

But the stalled $150 million Penlink project at Whangaparaoa has been put back a year on the project list.

Water and wastewater property charges have risen by 3 per cent.

Mayor Webster said the council was more transparent than Auckland or Manukau City Councils by including both water and wastewater volumetric charges in its overall average rates rise.

A suggested rise in council-run facilities' base charges by $1 a metered unit for wastewater and 80c for water was shot down by some councillors as being unaffordable for families.

But the expense of running water facilities in townships will push overall rates more in Wellsford (by 5.48 per cent) compared with suburban Whangaparaoa (2.65 per cent).

A house in Stanmore Bay, with a CV of $480,000, will pay total rates of $2471, or $64 more than last year. A house in Wellsford, however, with a CV of $320,000, will pay $2907, or $151 more than last year. About $92 of this increase is in water and wastewater rates.

In rural Rodney, a Wainui farm with a CV of $2.6 million will pay $6800, or $366 more, and a Kawau Island property with a CV of $880,000 will pay $917, or $65 more.

Rating examples include GST at 12.5 per cent, assuming rates are paid before the tax rises to 15 per cent on October 1.

Rodney offers a 5 per cent discount if rates are settled by August 20.