Mr Watson said some capital work was delayed due to last year's June flood which, combined with low interest rates, had also helped keep the projected increase down.
"Our major work programme is still on track so our projected rate increases for the following year won't actually be hugely affected."
Mr Watson said depending on what residents wanted, the increase may be bumped up a little.
Meanwhile, 12 public meetings have been scheduled around the district to discuss the annual plan with details available at www.rangitikei.govt.nz/annualplan16-17. A copy of the proposed annual plan 2016/17 consultation document will be available at the meetings, on the council website, at council offices, local libraries and information centres. Submissions close at noon, May 6.