Kawerau residents are facing an average rates increase of almost 14 per cent due to the downward revaluation of the Norske Skog site.

The revaluation of the now-closed mill from $75 million to $20 million has resulted in a shortfall that must be picked up by the town's other ratepayers.

Residential property owners are facing an average rate increase of 13.6 per cent, which is more than triple the base 4.4 per cent increase the Kawerau District Council needs to counter the impacts of inflation.

Commercial and industrial ratepayers can expect an even bigger bite of the rates bill, with an average increase of 25.5 per cent.

At an extraordinary meeting on Tuesday, the mayor and councillors discussed 80 submissions received on its annual plan.

The community was asked for feedback on two consultation topics - how to split the rating shortfall caused by the revaluation of Norske Skog since its closure, and whether it should proceed with establishing a rate-reducing secure asbestos containment site at the old landfill.

If this project goes forward, it's expected to reduce the 6.2 per cent base rate rise by 1.8 per cent.

Most submitters, 64, support the council's preferred option of keeping the rating split 45 percent residential/55 percent commercial and industrial.

Mayor Malcolm Campbell says regardless of what decision is made, the business/industrial sector will feel a $1 million shortfall in rates due to the revaluation of Norske Skog.

Keeping the rating share differential at 55 per cent for industrial and commercial will result in a 34.6 per cent rate rise for that sector.

A 50-50 split would reduce that but result in a 16 per cent increase for residential ratepayers.

Nine submitters want it changed to 50-50, which will have seen large increases in rates for everyone. Three submitters suggest reducing costs and five are undecided.

Councillor Carolyn Ion says she feels there's a better medium between the two options.

'There's a bit of a balancing act here. We're not going to please everybody. There is going to be an increase.”

Campbell agrees.

'It's just who's going to pay. The most important part is to try and lighten the blow to residentials without crippling some of the commercial and industrial ratepayers.”

He says a 34.6 per cent increase is 'pretty harsh”, especially when some of them are paying large rates to begin with.

There's also a submission that suggests charging out of town users for use of the Mauri Kjar Memorial Swimming Pool Complex, which is free.

Campbell says, though it's always a contentious issue, he feels it's time the council made a move on charging, particularly considering large busloads of people arriving to use the pools recently.

Councillor Berice Julian put forward a proposal that council choose an option between the first two options, that of a differential of 48 per cent for residential rates and 52 per cent for industrial and business.

The council believs this is somewhat middle ground, although Campbell says that it would 'still be a bitter pill to swallow”.

For a residential property in Domett Street now valued at $310,000 this will equate to an increase of rates of $377 per annum, or $7 extra a week.

For a residential property in Cobham Drive with a new valuation of $450,000, this equates to a $366 (approximately) increase in rates or $7 extra per week.

The council resolved to pursue this option. It is due to meet again on June 28 to adopt its 2022-23 annual plan.

-Local Democracy Reporting is Public Interest Journalism funded through NZ On Air