What's happening to your rates?

Your 2021/22 rates bill will change based on five factors

So what changes are proposed for rates?

The biggest proposed change is to the General Rate.

This rate is used to fund a lot of services that benefit the community generally such as maintaining parks and roading. This is charged based on the land value of your property and adjusted through differentials.
The overall General Rate is proposed to increase from $17.7M to $21.1M or by about $4.4M, to cover:

  • Increased expenditure on Roading – Impact: approx. $1.5M
  • A reduction in what we receive from dividends (i.e. Alpine Energy – previously used to subsidise rates) – Impact: approx. $1M
  • A change in how we pay for footpaths expenditure (see our Revenue and Financing Policy change) – Impact: approx. $500,000
  • Other increases to the cost of running Council (e.g. minimum wage increases, new positions, increase in carbon credits) or changes to funding of Council services  – Impact: approx. $1.4M

Other rates

Other rates are also proposed to change under the plan

  • Uniform Annual General Charge (UAGC) – this is a flat charge that all ratepayers pay covering a bucket of Council Services that benefit the community. Under the Plan this is proposed to increase to $863.
  • Community Services Works and Services rate – this will reduce due to the Footpath funding change, as detailed on page 24 and on our website.
  • Targeted Rates changes – these are specific rates applied to particular services (e.g. Water Supply, Sewer and Waste Minimisation), and apply where an individual property gets this service. These will increase under the Plan for Water Supply, but reduce for Sewer and Waste Minimisation.

What are Differentials and how do they impact?

Differentials are used to fairly allocate the overall General Rate to different property categories. Council’s policy is to ensure each broad property category (e.g. residential) pays about the same overall proportion of the General Rate every time a property revaluation occurs. The Council believes the current split of the General rate ‘pie’ is fair (see the pie graph).

Every three years, district properties are revalued by Quotable Value NZ. Depending on the overall results of the District revaluation this can affect how much a property will pay towards the General Rate.
While each individual property will be different, the three yearly revaluation has meant changes in the overall value of property categories (e.g. residential).

For example, under the 2020 revaluation rural properties have generally declined in value, while residential properties have increased in value.
To reflect the current Differential split, Council needs to adjust the differentials and is proposing to again do this for this LTP (see the table).

So how does all this impact your rates?

Rates are complex, and every ratepayer is different. Due to the factors listed above, it is difficult to make a meaningful comparison with previous years. Below are some examples of proposed rates that would apply if our Long Term Plan went through unchanged, taking in to account the new property revaluations.