Councillors voted unanimously to adopt the draft consultation document.
Councillors voted unanimously to adopt the draft consultation document.
The average rates rise in Whanganui could be far less than expected for 2025/26.
Whanganui District Council has proposed a 2.2% hike in its annual plan, with the public to be consulted between April 1 and April 28.
At a council meeting this week, council chiefexecutive David Langford said “incredibly hard work” had gone into reaching that figure.
An average rise of 6.6% had been predicted.
“Bringing the rates down to this level really strikes the balance between keeping rates affordable for our community, as well as making sure we are investing in our core infrastructure,” Langford said.
The draft consultation document said savings have been made by cancelling the district’s kerbside food scraps service – a rates requirement of $1 million for 2025/26 – and a staff restructure saving $1.2m.
Non-rates revenue, including parking and aquatics, was expected to rise by 20%.
Additional costs included $700,000 in loan funding to establish a proposed housing entity and to accelerate design work for an affordable housing development.
There was also increases in museum funding ($100,000), sport and recreation grants ($50,000) and the reintroduction of the town centre regeneration grant ($100,000).
Langford said the 2.2% rise matched inflation and allowed for a $650,000 per year increase in debt repayments and a $2m increase in core infrastructure spending compared to 2024/25.
An average rise for residential properties of 2.1% is proposed, with farming at 3%, commercial at 2.3% and lifestyle at 1.9%.
Councillor Kate Joblin said she needed assurances the rates rise would not “create a bow wave” for 2026/27.
Langford said he and staff had been conscious of that issue.
Rob Vinsen says councillors were given the option of having no increase to rates for 2025/26.
“We have gone as far as looking at and reforecasting what the rates increase would be for year three of the Long Term Plan (2026/27) and making sure we haven’t driven that up.”
The council’s LTP also forecasts an average rates rise of 6.6% for 2026/27.
Councillor Rob Vinsen said the rise for the next financial year would be one of the lowest in the country, but elected members missed the chance to get it to zero.
“We had to do things like implement a door charge at the Sarjeant Gallery,” he said.
“There were $650,000 in cuts that the chief executive identified and said to us as councillors, ‘If you want to go without these, you can have a nil-rates rise’.”
Langford said implementing a door charge for out-of-towners at the Sarjeant Gallery would be discussed during deliberations on the annual plan.
While the public would not be asked “that explicit question” during consultation, they could submit on the topic.
A report on Sarjeant revenue would be presented in time for deliberations, Langford said.
Councillor Josh Chandulal-Mackay said he had strong apprehension about rushing the door charge issue.
“We need to be really considered about this. We need to engage with our stakeholders, donors and staff, and we need to look at the experiences of galleries in this space.”
That is part of the Government’s Local Water Done Well legislation, with a plan due in September.
Whanganui Mayor Andrew Tripe said if Whanganui did not have the lowest rates increase in the country, “it’ll be right up there”.
“Keeping rates affordable has been a focus for this council all the way through,” he said.
“Early on in this triennium, we introduced a six-point plan for cost saving and efficiency, and it has been incredibly successful.
“It’s no fluke that we are here.”
Palmerston North City Council is proposing a 7.7% average rates increase for 2025/26, with New Plymouth District Council at 9.9%, Whakatāne District Council at 11.7% and Tauranga City Council at 12%.
The Whanganui council is proposing an unbalanced budget of $5.9m for 2025/26 due some depreciation costs not being covered.
Langford said in management’s view, that was not a problem.
Glenda Brown says a lot of hard work went into getting the rates rise down to an average of 2.2%.
“We have some very long life assets, like the brand new Sarjeant Gallery, and we don’t think it’s appropriate to fund the depreciation of those assets,” he said.
“It is unfair, in my view, to ask them [ratepayers] to repay the debt for the current [Sarjeant] building, as well as pre-funding its replacement.”
Councillor Glenda Brown said she hoped the proposed rates increase was accepted by the community.
“There has been a lot of hard work to get it down to that,” she said.
Public consultation runs from April 1 to April 28.
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 Whanganui District Council.
