Rangitikei not using capital works extras

The Rangitikei District Council has decided not to use an unexpected extra $ 100,000 to reduce rates increases in its draft Annual Plan.

After reviewing the year’s budget, council staff have determined there will be an extra surplus of at least $ 100,000, largely because a number of planned capital works have been put off this year.

In a report to the finance and performance committee yesterday, Mayor Andy Watson proposed that the money be put toward reducing the average rate increase in the district’s Annual Plan from 2.34 per cent to 1.79 per cent.

As a result of the drop, many areas of Rangitikei would be looking at a rates decrease, with most large rural properties having a rates increase of between 2 and 3 per cent, Watson said. But he was not backed by his council after rigorous debate about what do with the money.

Councillor Dean McManaway said he did not believe it should go back to reduce rates.

‘‘ There are big things coming up in the next few years and I think it best that we use it wisely there.’’

Councillor Tim Harris said to reduce rates even further would be great public relations for the council and it should be put back. But Angus Gordon said the money was tagged for capital works and it should be held back for that reason.

‘‘ I know there might be a small political win in the media but I think we are better to chug on with our long- term game plan.’’

Lynne Sheridan said she was opposed to any of the money going back to ratepayers in the form of rates decreases. The money could be used for things ratepayers needed like an emergency reserve and a report should be made up on the options the council could use it for, she said.

Nigel Belsham proposed a motion that the $ 100,000 be held over in treasury for potential use in next year’s Annual Plan.

‘‘ That money has been saved by not borrowing to carry out works. It would be prudent to hold it over.’’

The motion

was

carried.