Ruapehu District Council adopts 7 per cent rates increase

To get down to 7 per cent, Ruapehu mayor Weston Kirton said the council would now need to find $250,000 in operational savings. Photo / Supplied

Ruapehu District Council has further cut its proposed rates rise for 2023/24, adopting a 7 per cent increase.

Mayor Weston Kirton said there had been a 1 per cent drop from the 8 per cent average rates rise initially proposed in the draft Annual Plan.

The 1 per cent represented around $250,000 which council would now need to find in operational savings, he said.

“Despite the challenges in finding the savings to get down to 8 per cent, elected members felt it was important to recognise community feedback and the economic pressures they are currently facing and voted for a further 1 per cent reduction.”

Kirton said due to underlying inflation and other pressures the starting point for the rate rise had been 25 per cent.

“Council staff needed to work hard to find spending reductions to get down to the proposed 8 per cent which was consulted on.”

Chief executive Clive Manley said finding another $250,000 in savings would not be easy without putting pressure on the council’s ability to maintain existing levels of service.

“Having only 1 per cent to cover other cost increases means we have absolutely no wriggle room for any new initiatives or requirements that may come up.”

Manley said increases in the Official Cash Rate (OCR) by the Reserve Bank to combat inflation meant Ruapehu District Council required a 6 per cent rate rise for higher interest payments.

“Before we even started to cover supplier contract commitments and other factors.”

Manley said a number of the suggested ways to achieve savings would require changes to the Long-Term Plan and other policies which could be considered after consultation next year on the Long-Term Plan.

“As rating levels carry forward year-to-year, whatever savings we can make to cover the shortfall need to be sustainable into the future,” he said.

“We urge people to engage with next year’s Long-Term Plan process so we can better understand the community’s key needs and wants before the consultation issues are confirmed.”