Council locks in 10.5% average rates rise
Rangitīkei District Council has confirmed an average rates increase of 10.5% for the 2024-25 year.
Councillors voted at last Thursday’s council meeting to adopt the Long Term Plan 2024-34, which means a total rates increase of 11.5% for the 2024-25 year, followed by 9.9% for year two and 10.75% for year three of the plan.
The average increase for ratepayers, assuming a 1% growth in rateable properties, would be 10.5% for the 2024-25 year, followed by 8.9% for year two of the plan, and 9.75% for year three.
The council consulted on a 12.5% rates rise, with an average increase of 11.5%.
A late curveball was when NZ Transport Agency Waka Kotahi told the council in mid-June that its funding allocation in the 2024-25 to 2027-28 roading programme would be reduced, so financial statements relating to roads had to be changed and resubmitted for auditing.
This had reduced budgets for roading operating costs, capital expenditure, grant income and debt.
But the council voted not to reduce the targeted roading rate.
Councillor Simon Loudon said they were being bold in pushing on with their roading programme. “As difficult as it may seem in the environment, it signals it is a large amount of our capital spend and we’re committed to it.“
Mayor Andy Watson said he was sure it would be a discussion that would come back to the council.
“The chances of having an emergency event are incredibly high and with the reduction on emergency funding, that will be incredibly challenging to council.
“So I’m in favour of this, but there is a warning from me, that this is the position we’re being placed in.”
Meanwhile, the council will bring its roading and three waters services back in-house, ending the shared services agreement with the Manawatū District Council.
Both councils reviewed the deal that had been in place since 2008 and it was agreed the Rangitīkei council could now deliver these services to its residents, although some aspects could be contracted.
All but three staff who were employed by the Manawatū District Council had accepted transfers to the Rangitīkei council. Work already planned would be unaffected.
The Rangitīkei council extended the road maintenance contract with Higgins for the next 12 months to allow time to complete the procurement process for a new contract starting on July 1 next year.
Bringing these services in-house was not expected to cost ratepayers any more than had been budgeted and could result in some savings.
The Rangitīkei council would also continue to provide animal control services for both districts.