Whanganui Chronicle

Revaluatio­ns skew rate increases

Horizons opts for 1 per cent average rise to help cover some costs and reduced investment income

- Laurel Stowell

Horizons Regional Council’s average 1 per cent rate rise was described by one councillor as “a total misread” and by another as financiall­y responsibl­e.

Councillor­s discussed their 2020-2021 annual plan on Tuesday, May 26. It comes with a 1 per cent average rate rise, a reduction from a proposed 5.95 per cent.

The small increase was needed due to increased insurance and transport costs, and reduced income from investment­s, chairwoman Rachel Keedwell said.

Tararua’s Allan Benbow proposed the 1 per cent. He said it was only an average figure, and the increase would vary from property to property.

For Whanganui, Horowhenua and Manawatu¯, where properties have recently been revalued, the increase could be more than 10 per cent. In Tararua he is expecting a 7.5 per cent reduction.

“We have got this real skewing going on. I think it’s a bigger problem than the percentage increase.”

Whanganui councillor Nicola Patrick seconded his motion. She said her house has recently been revalued from $220,000 to $350,000. With a 1 per cent rate increase her rates will rise $49 a year. A nil rates increase would still see them go up $45 per year.

“It’s different numbers but just a few cents for a property,” Patrick said. “Some people will be getting rates reductions in Whanganui. Every property is different.”

For councillor­s John Turkington and David Cotton the difference from 0 to 1 per cent matters a lot because of how ratepayers will perceive it. Turkington said any increase was “a total misread”.

Cotton said council chief executive Michael McCartney had said a zero per cent increase was possible. Some

Castleclif­f people may face a 20 per cent increase in Horizons rates, Cotton said, because their properties have had a big increase in value.

Rangit¯ıkei councillor Bruce Gordon said a lot of the work the council does is “airy-fairy” and could be put on hold. He put biodiversi­ty and education in that category.

“We have got a lot of airyfairy stuff that goes on in this organisati­on that should cease right now.”

Councillor­s Fiona Gordon, Allan Benbow, Sam Ferguson, Wiremu Te Awe Awe and Emma Clarke said the public had asked for more to be done, not less. Ferguson said the 1 per cent was a compromise and encouraged those against it to reconsider.

Deputy chairman Jono Naylor said the 1 per cent would mean the council would have to dip into reserves and anything less would be financiall­y irresponsi­ble. If more was cut, some of the council’s work would have to cease.

The annual plan and its rate rise was supported by seven councillor­s, including Keedwell, and opposed by five. It was adopted.

 ?? Photo / Bevan Conley ?? Whanganui Horizons councillor­s Nicola Patrick and David Cotton have opposing views about a rate increase.
Photo / Bevan Conley Whanganui Horizons councillor­s Nicola Patrick and David Cotton have opposing views about a rate increase.
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