Horizons Regional Council consults public on proposed 11.2% rates rise
Whanganui public transport could receive a $400,000 boost for the 2025/26 financial year. Photo / NZME
Public transport improvements and paying for parts of Whanganui’s port redevelopment could push up rates later this year.
They are key issues in Horizons Regional Council’s draft annual plan proposal for 2025/26, which includes an average 11.2% rates rise across the region.
The plan’s consultation document says
Last November, councillors voted to keep $400,000 in the budget for public transport improvements in Whanganui for 2025/26 despite NZ Transport Agency Waka Kotahi not providing match funding.
At the time, Whanganui-based councillors were split on the issue, with David Cotton against the funding and Alan Taylor in favour.
According to Horizons’ annual plan consultation document, that means a rates increase for Whanganui of $3.80 per $100,000 of a property’s capital value (CV).
In 2026/27, a proposed public transport funding boost of $1.05 million for Whanganui and Horowhenua would result in a rate rise of $6.65 per $100,000 of CV for Whanganui ratepayers.
How to pay off an additional investment of $5.25m in Te Pūwaha – Whanganui’s port redevelopment – is also on the table.
Horizons has given three loan timeframes: over 15 years, 25 years (preferred) or 35 years.
While there are no rates impacts for 2025/26, a 15-year loan means a targeted rate for Whanganui of $2.76 per $100,000 of CV in 2026/27, with 35 years at $1.59 and 25 years at $1.91.
Horizons has finished the North Mole section of its share of Te Pūwaha but still has projects at the Tanea Groyne, South Spit and South Mole.
At a council meeting last week, Manawatū-Rangitīkei councillor Gordon McKellar said the proposed rates increase was too high – “five times greater than inflation” – and he was not in favour of the increased public transport funding.
“We are asking ratepayers to load more cost and that’s a dangerous precedent, in my view.”
He said the Government could deny more transport funding in the future because Horizons decided to go ahead without it.
Taylor said it was “not right” for councillors to debate the contents of the consultation document at such a late stage.
“We’ve done that, and we’ve come to the conclusions that the consultation document is offering,” he said.
“If we were really concerned about what this document said and voted against it going out to the public, we’d be in real trouble right now.
“It would be too late to put together anything else.”
Horizons chairwoman Rachel Keedwell said she was also unhappy with the rates increase but supported signing off the consultation document.
“We are putting all those questions out there,” she said.
“When this comes back to us through submissions, we have an opportunity in our deliberations to make some changes if we feel we haven’t got it right.”
The council is also consulting on selling its shares in CentrePort, a Wellington-based port company, if investigations show favourable outcomes for ratepayers.
Money from the sale would be put in a managed fund.
According to the consultation document, there would not be an immediate benefit for ratepayers but “potential for increased subsidy of rates and greater regional benefit in future”.
Palmerston North councillor Fiona Gordon said she did not agree with everything in the document but “nevertheless, it’s where the majority have arrived”.
“From my perspective, the most important thing at the moment is the right information is in front of our community,” she said.
“I’ll be turning now to listening.”
Public consultation on the draft annual plan runs until May 1, with the final document to be signed off before July 1.
Consultation on a new Whanganui public transport network is also running during that time.
There are three options but two (greater coverage or frequency) rely on the $400,000 funding boost.
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.