3 April 2012

Council Proposes General Rates Increase Of 2.4 Per Cent
A 2.4 per cent increase in the district’s general rates reflects a budget based on prudence and maintenance, says Mayor Allan Sanson.

The increase is detailed in the council’s 2012 -2022 draft Long Term Plan, is for the general rates across the district, and does not include targeted rates, which cover refuse, water (except metered water), wastewater and stormwater as well as other services.

Mr Sanson says in drafting the Long Term Plan, the council’s focus has been on maintenance, rather than initiating any new projects apart from those required for growth, which would mainly be funded from development contributions.

“Affordability is a big issue which we have addressed within our budgets. We are obliged to ensure that our assets are maintained, provide the services our ratepayers want, and that we are also in a position to be able to cater for growth in our district.

“We have focused much more on keeping what we have, well maintained. We have a lot of infrastructure across a large area, and a comparatively low population to fund its upkeep. This requires prudence on our part, while making sure we don’t lose sight of the district’s future needs.”

Mayor Allan Sanson says the 2.4 per cent increase to the general rate is the increase to the council across the district.

“Individual ratepayers would see different amounts, more or less than the 2.4 per cent, reflected in their rates accounts received in the new financial year. This is because the individual capital values on which the general rate is based differ between properties. Also, we have had to align the valuations across the whole district after the reorganisation of 2010, which has seen a wide variation in property values,” Mr Sanson says.

Recognising the issue of property values made apparent late last year through the rates review and revaluation, the council is consulting on an interim rates remission proposal.

The proposal is to develop a one-off policy to apply for up to two years to help address the rates increases brought about by the revaluation.

“This could be funded through a loan from reserves or from general rates,” Mr Sanson says.

The cost could be up to $260,000 across the two years, with an impact on general rates of about $20,000 per year if the funding came out of reserves alone. Other funding options such as direct funding from general rates rather than from reserves would have more of an impact on the general rate.

If the proposal is adopted following public consultation, it would not apply to properties where rates have increased simply because of additional capital improvements.

Targeted rates for water, wastewater, and stormwater, and refuse/recycling, are also proposed to increase, with the increases varying depending on the area.

A targeted rate of $18.20 is also proposed, to recover the direct costs of running the Onewhero-Tuakau, Huntly, Taupiri, Ngaruawahia, and Raglan community boards. This would apply to those community board areas only.

“We understand rates affordability is the big issue for our ratepayers, as it is for the council. What is important is that we do get the right balance as we decide on the final plan. So, we need feedback from the community as to how they see what we’ve proposed, and whether they think it hits the mark for what they want for their district,” Mr Sanson says.

Public consultation opens on 5 April, 2012, and closes on 9 May, 2012. Copies of the summary are being posted to all ratepayers, and will be available along with the full document from the council’s offices, libraries and service centres.

The full plan and the summary will also be available on line at www.waikatodistrict.govt.nz.

ENDS

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