Nelson City Council is proposing an average rates rise of 3.7 per cent for the 2014-15 year, much less than the forecast 9.6 per cent.
The draft annual plan will be agreed on by the council tomorrow before it goes out for public consultation.
For a ratepayer with a residential property with a land value of $85,000, rates will increase 4.63 per cent to $2095, while for a $580,000 property, the rates will increase 3.72 per cent to $5210.
The plan spells out what the council is going to do differently from what it had planned to do in year 3 of the Long Term Plan 2012-2022, which was decided on in 2012.
Mayor Rachel Reese said: "We want to build a strong and resilient community while we continue to ensure Nelson is a great place to live. We have reviewed budgets and made savings wherever possible.
"This plan represent a rates rise of 3.7 per cent which is significantly less than what was originally planned in the Long Term Plan."
Rates were expected to rise 5 per cent when the Long Term Plan was originally designed and since then predictions put rates at a 9.6 per cent increase for this coming year, but savings have been made in "corporate costs" and by delaying capital programme projects.
Ms Reese said a number of projects had already been deferred in previous years and "the more you cut it one year the higher the percentage increase the next year", so the council had looked at what was realistic to achieve.
"We are making sure we are not taking rates for anything we can't deliver. so that's a real objective," she said.
It was not possible for the council to start all projects again, but it was focusing on stormwater. She said the council "carefully considered the fairness of the rates rise" for ratepayers, but any less of a rise would have resulted in a loss of services and at a risk to assets.
The public will be able to make submissions on the draft annual plan from March 28.
RESIDENTIAL RATES RISES BY LAND VALUE
$85,000 up 4.63% from $2002 to $2095
$105,000 up 4.54% from $2124 to $2221
$118,000 up 4.48% from $2204 to $2302
$136,000 up 4.42% from $2313 to $2416
$185,000 up 4.27% from $2612 to $2724
$200,000 up 4.23% from $2704 to $2818
$215,000 up 4.20% from $2795 to $2913
$285,000 up 4.05% from $3223 to $3353
$315,000 up 4.01% from $3406 to $3542
$335,000 up 3.97% from $3528 to $3668
$420,000 up 3.86% from $4046 to $4203
$580,000 up 3.72% from $5023 to $5210
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