Councils have a mountain to climb to win back the trust of rural ratepayers, Federated Farmers says - and that starts with cutting wasteful spending and sharing the burden more fairly.

"At the same time, councils deserve an overhaul of their funding tools and other changes to central government policy," Feds local government spokesperson Sandra Faulkner says.

"Council rates hikes have climbed well above inflation for several decades, but the pressure on ratepayers has only worsened.

"When elections happen this October, voters should back candidates who commit to capping general rate increases at inflation - unless there’s a genuinely extraordinary reason not to," Faulkner says.

She says rural ratepayers are fed up with footing the bill for urban-centric services they don’t use and aren’t connected to.

"It’s time to scrap unfair rating differentials and shift towards targeted uniform charges and annual general charges to reduce reliance on property value-based rates."

Federated Farmers is also calling for legislation changes that would require binding referenda on any council commercial projects that cost more than $500 per rateable property.

"We’re not talking about sewage treatment plants, bridges or other such essential infrastructure," Faulkner says.

"We’re meaning commercial ventures like stadiums, conference centres and marinas that are beyond core council purposes and can destroy balance sheets.

"It’s not to say these projects can’t happen, but ratepayers should get to make the final call."

Councils could also save money by sticking to their lane and leaving climate policy to central government, Faulkner says.

"Councils should stop duplicating effort - and wasting ratepayer dollars - by setting climate policies.

"To do something positive for the environment, councils that haven’t already should bring in a rates remission policy for land under QEII covenants, Significant Natural Areas and Outstanding Natural Landscapes.

"Given that public conservation values are protected by these mechanisms, farmers deserve rates relief," Faulkner says.

Federated Farmers supports RMA and local planning reform that reduces delays, costs and uncertainty, and utilises tools like farm plans rather than consents.

Significant Natural Area and environmental rules must be science-based and farmer-friendly.

Faulkner says central government also has a major role in the drive for council efficiency and fairness.

Federated Farmers believes road users, rather than property owners, should be paying for local roads and bridges - as is the case for State Highways.

"We’re calling for 90% of local roading maintenance and renewal costs to come from fuel excise tax and road user charges, rather than rates. Currently, the average is only 53%.

"Property value rates are a particularly poor mechanism to fund roads for the same reason as general taxation: it doesn’t tie those who use roads with those who pay for roads.

"This system also lacks logic. In areas with a lot of tourism or freight, for example, locals are left paying for roading networks that serve a wider regional or national purpose."

The 10% cost share left with ratepayers would lock in a district say on local road priorities.

Other steps from central government are also needed to relieve cost pressures on council, Faulkner says.

"Crown land should be rateable, the 30% cap on council uniform annual general charges should be scrapped, and the Beehive should stop unfunded mandates - piling extra responsibilities onto councils with no corresponding funding."

Faulkner says with council elections looming, now’s a great chance to ask some tough questions of councillors seeking re-election - and those challenging them for seats - on how they’ll lessen the rural rates burden.

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