Mayor wants to see more transparency in rates-setting process

Published on 03 February 2023

Whanganui Mayor Andrew Tripe says he would like to see more transparency in the council’s rates-setting process which is carried out annually between December and the following April.

Traditionally councillors’ rates-setting workshops have been held in confidence.

Mayor Andrew says, “In recent weeks I have been able to indicate that external factors are putting pressure on rates to an unprecedented level – but because rates workshops are held behind closed doors, I have been unable to be more specific.

“I would like to see a more transparent rates-setting process in future so our community can understand the pressures councillors and staff are facing and how we’re navigating the big issues and decisions that need to be made.”

Councils across the country have increased rates because it costs more to run services and facilities with inflation running at over 7%, interest rates rising and supply chain issues.

“From looking around at other centres people will know a significant rates rise is inevitable in Whanganui, particularly with last year’s very low 3.5% increase. All councils have at some point had to face up to increasing rates so they can keep running key services and facilities but it’s important to make sure that increase is manageable.

Mayor Andrew says when councillors were presented with a budget in December showing initial 2023/24 rates calculations in the high teens he asked council staff to find savings. In January chief executive David Langford and chief financial officer Mike Fermor came back with over $2M of savings to shrink the projected rates increase to 11.3%.

“That figure is in line with other councils, but in my view it’s still unacceptably high,” Mayor Andrew says. “I’m aware many people in our community are doing it tough right now so in light of that I asked staff to find further savings."

Since the December workshop, the council team has continued to work on the budgets and found further savings along with some small reductions in service levels that has brought the projected rates rise down to 8.4%. At a Thursday, 2 February workshop councillors considered options to further reduce the rates. 

Mayor Andrew says 8.4% is a good figure in the current environment.

“I’m pleased we’ve been able to get to this, considering we are introducing new recycling services and inflation is currently running at 7.2%. The challenge now is to continue to find ways to reduce the percentage further.”

Rates for the 2023/24 year will be finalised at a livestreamed council meeting in July this year.

The mayor says while most people understand we all pay rates for a range of services and facilities such as swimming pools, sportsgrounds, libraries and parks, not everyone understands how rates work or all of what they cover.

Mayor Andrew says going forward people will see a more open and visible approach, not only to rates-setting, but to council business in general.

He says his goal is to bring the council to the people with “Community Kōrero” events, planned for February and March.  

“This will be a chance to come along and chat with your Mayor and councillors. We can talk about rates, as well as other key issues that are top of people’s minds. I’d encourage everyone to come along to meet us – we’re here to listen.”

Details about the “Community Kōrero” events will be announced in coming weeks.