Masterton Rural Ratepayers Face Bigger Rates Hike Than Townies

Tuesday, 18 February 2025, 10:22 pm
Article: Emily Ireland - Local Democracy Reporter

Masterton rural rates are projected to rise an average of 12.7% this year, more than double that of the urban rates rise of 6.2%.

The cause of the rural rise was attributed to a near-20% increase of rates required for the 2025/26 roading programme.

The council’s Revenue and Financing Policy allocated a greater share of the rates required for roading to the rural area to reflect that is where about 70% of the money was spent.

Masterton District Council would meet on Wednesday to approve the 2025/26 work plan and decide whether to consult or engage with the community on its draft annual plan.

Staff recommended the council run engagement instead of consultation as there were no material differences compared with the relevant year in the Long-Term Plan which was adopted last year.

Engagement costs ranged from $500 to $6000, whereas a formal consultation could cost up to $150,000 depending on the complexity of the issues presented, the number of public events and other promotional approaches, the number of submissions and hearings, and the staff levels required.

A council report said staff and elected members were “cognisant of the impact that rates increases have on ratepayers, and have tried to control costs and find efficiencies to minimise the impact on our community”.

“This has resulted in a proposed budget with an average rate increase of 7.8% after growth and before the impact of water meter charges.

“The LTP for Year 2 predicted 7%.”

The report said the primary drivers of rates increases were external, such as inflation and increased liability insurance, and that the council and community had limited influence on those drivers, short of deciding to reduce levels of service.

There were no proposed changes to the council’s levels of service for 2025/26.

-LDR is local body journalism co-funded by RNZ and NZ On Air.

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