Horizons Regional Council plans significant rates rise

Palmerston North residents looking at a 6.4 per cent rates rise could be stung with a 5.7 per cent hike in their regional council rates too.

Horizons Regional Council’s costs were increasing and there were higher expectations about what services the council should provide, Palmerston North councillor Paul Rieger said.

The regional council is set to send out its draft Long Term Plan for public consultation after the document is audited.

The wider region is pegged for a 6.79 per cent average general rates increase, though ratepayers in the Ruapehu District face a 17 per cent hike.

The Manawatu¯ -Whanganui region has more than 106,000 ratepayers. As well as the general rate, other rates components vary between districts or for different types of property or land use.

Some of the big projects planned for more spending include a programme to strengthen roading retaining walls and upgrading planning and infrastructure to cope with the projected effects of climate change.

Rieger said rates rises were inevitable as the council’s own costs increased, and some flowed down from central government.

Ruapehu councillor Bruce Rollinson said the 17 per cent increase there would be a shock for those facing it. The district has had a significant jump in land valuation from recent Quotable Value assessments, which would increase their tab. The council had added several schemes to the district that were needed, but which would add about 5.3 percentage points to the increase.

‘‘It hits those properties [that have had big increases in land value] hard.’’

Rangitı¯kei and Tararua District ratepayers are also facing larger rate increases than the regional average due to increasing land values.

The process for deciding on the levels of rates is far from over. Councillors will hear from the public and then debate how their plans should be adjusted before adopting the Long Term Plan.

‘‘It’s at the beginning. It’s a hell of a complicated thing,’’ Rollinson said.

Council staff were able to offer explanations about rates, and to give ratepayers projections of what they could be paying in the future, he said.