Rates rise needed to ‘go forward’
‘‘Get the transport right and they will come.’’ Grant Smith
The proposed 6.4 per cent rates rise for Palmerston North will help pay for a small city that has ‘‘a big-city ambition’’.
Palmerston North mayor Grant Smith told the crowd at the annual State of the City address at the Palmerston North Lunch Club yesterday that the increase was a balancing act between investing in the future and affordability for ratepayers.
Part of the city’s attraction was affordable housing and accessible amenities. But the expected increase in both opportunities and population meant the city would have to keep up by providing the necessary infrastructure and attractions – hence projections of a 6.4 per cent rates increase.
‘‘Look, I totally understand that any increase in rates is not welcome. We could deliver you zero rates, but we’d be sliding backwards... We could stand still at 2.5 per cent.’’
Rates would still have to increase anyway to cover increasing costs, as well as to invest in longer-term benefits for future generations of citizens and pay down debt to reduce interest payments.
Among the bills facing the council is the ‘‘must do’’ $128 million for the city’s wastewater, and improvements to everyday services.
From finding the right alternative to the Manawatu¯ Gorge route, to Palmerston North’s critical rail and airline links and the extended shared pathways to Linton and to Feilding, transport was a key issue, Smith said.
Connectivity was vital and finding a viable alternative to the gorge was wider than simply fixing a broken link between point A and point B.
As a major freight and logistics hub for the lower North Island, a regional ring road, which included another Manawatu¯ River bridge, would be ‘‘an absolute gamechanger’’, Smith said.
‘‘It’ll be much easier to move freight around the lower North Island. That’s why we’re spending so much time to get this right because the call that is made will influence big private investment decisions... as well as creating a far more liveable city for us.’’
He said the city moved two-anda-half times more freight than Wellington, while Tremaine Ave was ‘‘one of the four busiest two-lane roads in the country...
‘‘So we’ve got some real congestion problems.
‘‘Get the transport right and they will come.’’
In the next three to six years, Smith said Palmerston North and Manawatu¯ would be the beneficiary of $1 billion worth of external infrastructure investment.
He outlined the pending multimillion dollar spends by the New Zealand Defence Force as well as developments at Palmerston North Hospital, Massey University and Foodhq.
Other elements in the city vision were to continue refurbishment of Broadway Ave and the city centre, and the Cuba St connection to the Central Energy Trust Arena, with upgrades to the city library, the Arena, Te Manawa, and Victoria Esplanade.