“Everybody would love a rate increase of zero or very, very low,” Watson said.
“The thing we have to also look at is that our roading can account for 40% of our total budget as an operational-type cost and the CPI [consumer price index] of roading isn’t at 2% or 3%; the CPI of roading cost increases are virtually around the rate increase.”
There are 8000 rateable properties in the Rangitīkei District.
Corporate services group manager Leanne Macdonald told the meeting that the council started the 2025/26 draft plan with a 9.9% rates increase, went out to consult at 9.1% and was now at 8.9%.
Public consultation closed on May 5.
“As officers, we have had a hard look at our budgets and did what we could but we also had some significant changes,” Macdonald said.
They included the introduction of a new electricity account with a 35% increase.
Chief operating officer Arno Benadie said it was the best option on the market that they could find so the council had locked in the prices in a “three-year box”.
Macdonald said council officers had been able to reduce costs of interest after reviewing the capital programme.
They were also able to correct finances going into the second year without the shared services contract with Manawatū District Council for roading and water service delivery
The council declined submitters’ requests for funding for Taihape playground barbecues, Gorges to See cycle trail and McPherson Reserve off-road car parking, with the majority of councillors agreeing there were more important projects to sort first.
These included the Marton Swim Centre, Calico Line shared pathway, Taihape Town Hall redevelopment and requirements of the Local Water Done Well legislation.
Watson said these projects had contributed to the final rates figure.
“We have invested very heavily within this LTP [long-term plan] in terms of Local Water Done Well to make sure that there is a clear pathway for our consenting issues and capital expenditure,” Watson said.
“Like most councils out there, we have buildings that have run their time. We are dealing with two major buildings - Taihape and Marton, we ran into a further expense with the failure of the beams in the 50m swimming pool.
“Yes, we have had an enormous offer for assistance from the community but we have to allow for some extra spending there.”
Most of the council’s fees and charges will increase by 2.3% in 2025/26.
The new rates come into effect from July 1.
Fin Ocheduszko Brown is a multimedia journalist based in Whanganui.
