Rates rise lower than forecast

Published on 19 July 2018

19 July 2018

District growth allows lower rate increase

The positive message delivered at a Whanganui District Council meeting today means good news for Whanganui ratepayers.

Updated valuation data for Whanganui shows $70M worth of growth in the last twelve months across the district, which will translate to a drop of 0.2% in the average rates increase for 2018/19.

The Council’s General Manager – Finance, Mike Fermor, briefed the Mayor and Councillors with updated information as they gathered to strike the rates for 2018/19 on Thursday 19 July.

Mr Fermor said although the Council had already agreed rating levels for 2018/19 in its Long Term Plan an update of the rating information database to 30 June 2018 shows the capital value of the Whanganui district has increased by a significant $70M. This translates to a 1% increase in the district’s overall rateable value.

“This means the average rate increase will drop from the forecast 4.5% to 4.3%. The residential rate rise will be adjusted down from 5.5% to 5.2%, the commercial rate from 0.8% to 0.3% and the farming rate from 0.9% to 0.8%,” he said.

“Most of the new growth has come from residential building activity, mainly in the Springvale, St Johns Hill and Otamatea areas, as well as significant new commercial developments.”

Mayor Hamish McDouall says “Increasing population growth in our district means the rates burden can be shared between more properties, reducing the cost for all.

“It’s really good news to have achieved an overall rates increase of only 4.3%. I know a number of other districts will be faced with eye-watering increases over the coming year, while Whanganui continues to be one of the most affordable and liveable places in New Zealand.”

ENDS