Multimillion-dollar farming properties are set to face the biggest rates increase in Rotorua under the council's proposed annual plan.

Residential urban homes with higher values will be the next hardest hit.

Rotorua Lakes Council is consulting on its draft 2019/20 Annual Plan which summarises developments related to key council projects and proposed average rates increases, and seeks feedback on one issue.

The plan proposes an average rates increase of 4.9 per cent for the next financial year, 0.2 per cent less than proposed in the 2018-2028 Long-term Plan.

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It also proposes net borrowing reach $247.5 million and capital spending reach $89.9m.

This compares with Long-term Plan estimates of $230.2m in debt and $76.2m in capital spend.

Rotorua Lakes Council is consulting on its 2019/20 Annual Plan. Photo / File
Rotorua Lakes Council is consulting on its 2019/20 Annual Plan. Photo / File

The council has a rates calculator online but outlines how the average rates increase will affect a sample of properties in the district as part of the plan.

The business sector would see an average 5.1 per cent rates rise, the farming and residential urban sectors would see an average 4.8 per cent rise and the residential rural sector would see an average 4.3 per cent rise.

The council is also seeking feedback on the delivery of wastewater services and a proposal to contract the delivery to external providers long-term.

The proposed plan estimates more than 65 per cent of the network will reach the end of its useful life cycle within the next 25 years.

The contractor will be responsible for operations and maintenance including complying with resource consents.

An aerial view of the Wastewater Treatment Plant in Rotorua. Wastewater service delivery is part of consultation. Photo / File
An aerial view of the Wastewater Treatment Plant in Rotorua. Wastewater service delivery is part of consultation. Photo / File

The council has already accepted expressions of interest and has chosen a preferred consortium of providers.

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According to the consultation document, contracting out would allow the council to "gain certainty in risk management, future and ongoing costs, reliability and performance management".

Collected feedback will be presented to the council in June for consideration. Further consultation would be required for the council to contract wastewater services out long-term and would need to include contract and cost details.

The 2019/20 Annual Plan for Rotorua is out for consultation. Photo / File
The 2019/20 Annual Plan for Rotorua is out for consultation. Photo / File

Feedback can be given online at rotorualakescouncil.nz/letstalk, in writing and at one of two community conversations.

The first is on May 7, 4pm to 6pm at the council chambers and the second is on May 9, 5pm to 7pm at Te Aka Mauri.

Average rates rises by sector
Business sector - average 5.1 per cent rise
- Lower CV ($323,000): Up 4 per cent ($140)
- Medium CV ($540,000): Up 3.9 per cent ($203)
- Upper CV ($2.43m): Up 4.2 per cent ($799)
- Upper CV ($4.94m): Up 4.6 per cent ($1978)
Farming sector - average 4.8 per cent rise
- Lower CV ($515,000): Up 3.7 per cent ($68)
- Medium CV ($895,000): Up 4.3 per cent ($119)
- Upper CV ($7.19m): Up 5.1 per cent ($977)
Residential rural - average 4.3 per cent rise
- Lower CV ($293,000): Up 3.2 per cent ($44)
- Medium CV ($570,000): Up 3.9 per cent ($80)
- Upper CV ($1.875m): Up 4.9 per cent ($250)
Residential urban - average 4.8 per cent rise
- Lower CV ($288,000): Up 4.6 per cent ($93)
- Lower CV ($325,000): Up 4.6 per cent ($98)
- Medium CV ($447,000): Up 4.7 per cent ($114)
- Upper CV ($685,000): Up 4.9 per cent ($145)
- Upper CV ($750,000) : Up 4.9 per cent ($153)
- Upper CV ($1m): Up 5 per cent ($186)