Seven Whanganui District councillors say that by forming a voting block they have kept a proposed rates hike in check.
They refused to vote for an average rate increase of more than two per cent, they said in a joint statement.
Councillors David Bennett, Murray Cleveland, Alan Taylor, Graeme Young, Rob Vinsen, Charlie Anderson and Philippa Baker Hogan delivered the ultimatum to Mayor Hamish McDouall and chief executive Kym Fell in February.
"This followed a workshop held on February 1 where councillors had been presented with a draft Annual Plan that suggested that the average rates increase would be 3.3 per cent," the statement said.
They said that by coming together on the issues they had a voting majority on council.
Their argument was that given the low rate of inflation and the high percentage of fixed income ratepayers in Whanganui that any average increase over two per cent was unacceptable.
The councillors also suggested a method to reduce the rate collection by 1.3 per cent.
"We were pleased when Finance Manager Mike Fermor presented a revised draft plan three weeks later, on February 22, that had reduced the average rate increase down to 1.9 per cent.
"This is the lowest average rate increase since 2005/2006, twelve years ago. We recognise the efforts of the Chief Executive Kym Fell, and his senior management team to reduce both operating expenses and personnel costs below that in the 16/17 plan. We congratulate them for that initiative.
"We also believe that it was no coincidence that the proposed rate increase was reduced to below two per cent and the seven councillors consider that that reduction is a victory for their alliance. It is also a victory for the ratepayer."
The councillors said although council will only collect 1.9 per cent more in rates than last year, it should be remembered that actual rate increases will vary across the suburbs and sectors due to revaluations - some lower, some higher.
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The seven councillors said they will continue to unite in the interests of the ratepayer on issues where they believe this strategy will be effective.
In a separate statement Mr McDouall said the council had listened to concerns from residents about the levels of rate increases and had worked hard to keep expenditure to a minimum, and to focus on essential infrastructure and services.
"Our proposed rate increase is much lower than that proposed in our 10-Year Plan 2015-2025. This is indicative of the hard work of councillors and council staff," Mr McDouall said.
"However, we know that there are a number of capital works that need to be undertaken in the next financial year to ensure the smooth running of this city and it is unlikely that we will be able to sustain a similarly small rate increase in the 2018/19 financial year," he said.
"The feedback we get from the Whanganui community about priorities for the coming year is such an important part of the democratic system. Submissions are also vitally important to ensure we are being prudent and accurate in the way we spend and that our spending benefits our whole community."
Additionally, the consultation process encourages the community to give feedback on other issues or to point out what may be missing, he said.
More information on the 2017/18 Annual Plan Consultation Document, a submission form and supporting information can be found at www.whanganui.govt.nz/annualplan with hard copies available from the council's Guyton Street offices and Whanganui libraries.
Submissions close at 4pm on Wednesday, 10 May 2017. Hearings will be held on Tuesday, May 16 and Wednesday May 17, 2017.