Ruapehu District Council sticking to forecast with 9% rate rise for 2025/26

A $400,000 community playground in Waiouru is one of the few major projects Ruapehu District Council has planned for 2025/26. Photo / NZME

Ruapehu District Council is sticking to its guns, with an average 9% rate rise expected for 2025/26.

At a public meeting in Ohakune this week, chief executive Clive Manley said the council adopted a 9% increase for the first three years of its 2024-34 long-term plan (LTP).

“That was to give certainty. Last year [2024/25], we had one of the lowest rate rises in the country.”

He said while 9% “sounds like a lot”, budgets had to be stripped to get there.

“There aren’t the projects you’d expect us to be doing, and I know some community groups are wondering where the money is for some of their projects.

“For the next couple of years, until the water has been sorted, we are very constrained.”

The council proposes to partner with the Whanganui and Rangitīkei councils for a joint water delivery model as part of the Government’s Local Water Done Well reforms.

Speaking to the Chronicle, Ruapehu Mayor Weston Kirton said while the council’s “bean counters” were working hard, the 9% figure was unlikely to drop despite possible savings from lower interest rates.

“Really, you can only do two things — increase income or decrease expenditure.

“You never say never, though. If things unfold positively, we pass it on to the ratepayers, it’s as simple as that.”

Mayor Weston Kirton says the council is "getting down to business as usual".

He said the council had reached its self-imposed debt level of “$60-odd million”.

That was mainly because of spending on waters leading up to Government reforms.

“There will be a different look to councils when 40% of your business [water] goes to another entity,” he said.

“You have to refocus on what you’re actually there for.

“Debt servicing will be different, rating revenue will decrease, and staffing levels will change.”

Whanganui District Council is proposing a 2.2% average rates rise for 2025/26, with Rangitīkei at 9.1% and Horizons Regional Council at 11.2%.

According to a community consultation document, major projects to be delivered in the Ruapehu council’s 2025/26 annual plan include district-wide road surfacing, metalling, pavement rehabilitation and bridge renewals ($6.8m), and waters maintenance at Ohakune and Hikumutu ($1.6m).

A new community playground at Waiouru ($400,000) is also planned.

Kirton said he hoped additional funding would be secured to complete parts of the Mountains to Sea Ngā Ara Tūhono Great Ride, linking Whanganui with the central North Island.

“For the most part, we are really getting down to business as usual and carrying on with our basic needs, rather than any major projects,” he said.

“We don’t invest in any other activity unless we can actually afford it.”

Kirton said the rate rise was not pretty, but the council was sticking to its forecasts.

“So far, we’ve kept our word. It’s not a blow-out, and we’re not having to grovel and say ‘Sorry, it’s actually going to be 10%‘.”

Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.