Council keeps rates rise down and invests in infrastructure
Published on 16 July 2024
Whanganui District Council’s Long-Term Plan 2024-34 was adopted at a full council meeting on Tuesday, 16 July. Whanganui Mayor Andrew Tripe says the council has managed to keep its rates rise lower than many others while setting aside funds to invest significantly in core infrastructure, with around 80 percent of capital spending over 10 years going on roads, footpaths, and water pipes.
“When we calculated the figures last year Whanganui’s rates rise looked like it could end up at 17 percent but we took action. Our six-point plan, which includes being more efficient and streamlined, has meant we have been able to keep rates lower than most nationally. At the same time we are also delivering responsibly on the basics such as infrastructure as well as community aspirations. It has seen some emotive, challenging conversations and tough decisions.”
Whanganui’s overall average rates rise for 2024/25 across all property types has now been confirmed as 11.2 percent.
“This compares pretty well to overall percentages around the country which are on average around 16 percent,” Mayor Andrew says. “We’re seeing many councils’ rates rises are higher than Whanganui’s, with these figures, for example, recently confirmed: 16.5 percent in Hamilton, 16.9 percent in Wellington, 17.5 percent in Porirua, 19 percent in Hastings and 27 percent on the West Coast.
“In saying that, I know this rates increase will be difficult for some people even if it is generally lower than other councils’.”
Rates vary by property type and this financial year the average rates increase is 13.5 percent for residential properties, 6.5 percent for lifestyle properties, 8 percent for farming properties and 2.3 percent for commercial properties.
“It’s worth noting that for residential properties, 3.2 percent of the increase comes from the introduction of kerbside recycling, which has taken off with a hiss and a roar this month. Whanganui has finally caught up to other centres, offering people in the collection zone a service that makes it easy to play their part in looking after the environment,” Mayor Andrew says.
Mayor Andrew says he wants to emphasise that the percentages are averages across the district.
“Rates increases are always different from one property to the next, depending on the type of property, its size, valuation, and the services provided to it.”
Rates for individual properties for the 2024/25 year are available now on the Rating Information Database on the Whanganui District Council website and rates notices will be sent out from Thursday, 1 August.
“Some people will be wondering why rates have gone up more this year than in the past,” Mayor Andrew says. “The reason is councils have been hit hard with cost increases for a whole range of things we need to pay for to deliver services and facilities.
“For example, the cost of road resealing per kilometre has more than doubled over the past six years, the cost of steel water pipes is almost twice as much as it was four years ago, and the cost per metre for bridge renewals has doubled over the past four years.”
Mayor Andrew says the community had a whole range of views on topics in the Long-Term Plan and elected representatives worked hard to listen to people.
“As a result of community feedback, the council has dropped the idea of developing a hotel and carpark itself and will instead seek a developer for this project.”
Another key project that won’t go ahead after hearing from the community is the crossing at Pākaitore.
The replacement of the Dublin Street Bridge has been confirmed as a priority and work on the business case and engineering designs will start soon.
“The aviary was a contentious issue, with some people strongly in favour of closing it and others wanting it kept open. The aviary will close as a council-run facility, as per our decision. However, we are open to the aviary being community-run as long as the welfare of the birds can be guaranteed – and right now a business case is being prepared and brought to the council to this end. The aviary will remain open as usual while this option is explored.”
Mayor Andrew says community-building projects in the Long-Term Plan will make life better for Whanganui residents. These include putting funds towards the Wanganui Surf Lifeguard Service’s new operations centre and tower facility, enhancing the Splash Centre, contributing money to the North Mole rejuvenation and new amenities, replacing the running track and improving lighting and drainage at Cooks Gardens, and carrying out playground replacements across the district.
“Marae provide vital assistance with our district’s civil defence response in emergencies so we’ve put some funding towards repairs and improvements for marae from 2027/28.
“We’re also increasing community contract funding – this means more of our amazing local organisations can partner with the council to provide services that benefit community health, safety and wellbeing.”
Mayor Andrew says he knows there will be people in the community who are worried about the increase.
“For a lot of people, the easiest way to pay rates is to set up a direct debit to go out weekly or fortnightly to match your income frequency – you can either do this online on the Rates page on the Whanganui District Council website or get in touch with the council to set it up.
“If you’re on a low income and have concerns about paying rates, please contact the council’s rates team to discuss any options by emailing rates@whanganui.govt.nz or phoning 06 349 0001.
“This Long-Term Plan won’t suit everyone but we’ve tried hard to strike a balance between keeping the rates rise as affordable as possible and investing in our incredible district not only for people now but for future generations.”
Rates remission
Last year the council provided rates remission to households whose rates went up because of a dramatic rise in their property value after the district-wide revaluation in October 2022. The purpose was to give these property owners time to adjust to their new rates, including looking at options like subdividing. This year elected representatives have voted to extend this rates remission but at 75 percent of last year’s amount.
To be eligible for this rates remission, property owners need to have a household income from 1 April 2023 to 31 March 2024 of no more than $90,000 gross. The property needs to be residential and the ratepayer must live in the property and not own other properties. When assessing applications, the council will check the rates increase is predominantly due to the October 2022 district revaluation rather than building work or property improvements. Also, the property should not be in the process of being subdivided. Applications can be made by picking up an application form from council customer services at 101 Guyton Street or on the council website: https://www.whanganui.govt.nz/Property/Rates/Apply-for-rates-remission