Rangitikei faces 7.09pc rate increase

Rangitikei ratepayers can expect an average rates increase of 7.09 per cent this year.

The district council's proposed rate increases range from 1.2 per cent in some areas to 14.2 per cent in others, according to its 2010/11 draft annual plan.

Chief executive Clare Hadley said the increase was a reflection of the infrastructure upgrades.

"For instance, Erewhon have a rates increase of 11.5 per cent as they are contributing towards the sealing of the Taihape–Napier road and in Marton, it is to pay for the proposed water, wastewater treatment plant and stormwater upgrades," Mrs Hadley said.

Residential ratepayers in Marton have a rates increase of 10 per cent and Marton commercial ratepayers, who have the highest rates increase in the district, face a potential rise of 14.2 per cent.

Mrs Hadley said the reason for such a high increase was that some commercial properties had multiple toilets, which meant they would be charged a higher percentage of the wastewater costs.

As part of the Long-Term Community Council Plan the council proposed to spend $13 million over the next 10 years to improve Marton's water quality and quantity after several complaints.

She said the increases would differ for each property, the proposed level of increase could be adjusted by the time the final plan was adopted.

"This change may be made after looking at capital expenditure for the previous year and if money wasn't spent in the last year then it would be carried over and we would lower the average rates increase," Mrs Hadley said.

In Bulls rates look set to rise by 1.2 per cent, in Ratana by 9 per cent and Hunterville by 2.1 per cent.

Council will adopt the final annual plan on May 27.For the year 2010/2011, Rangitikei District Council's total operating expenditure is $25.8m and total capital expenditure is $15.4m.

- © Fairfax NZ News