Elected members have agreed to undertake further community consultation regarding a potential move to base its general rates on capital value.

Kaipara District Council is one of the few district councils still using land value to calculate the general rate. Land value (LV) is the value of your land, while capital value (CV) includes the land value plus any improvements made to the land, such as buildings.

The proposed move to capital value was discussed by elected members during deliberations on changes to its Revenue and Financing Policy. The policy outlines how the council funds its operating and capital expenditure. The policy and any review of it does not increase the overall rates take for Council and only redistributes costs.

Council carried out community consultation from 6 November to 15 December 2024. The consultation drew 177 submissions from individuals, community groups, businesses, and organisations, with 19 submitters heard by elected members in a session held in Dargaville in mid-February.

Kaipara District Council Mayor Craig Jepson noted the complexity of rates and finding the fairest way to charge them.

"Building on the feedback we have already received, elected members agreed that we would reject what we had proposed and stay with land value for the next year. This would give Council time to drill down further and take another look at how best to use capital value for calculating the general rate. Part of that will involve coming back to the community to see if we are making the right call."

Another proposed change was to equalise the capital costs of stormwater across the district.

Elected members agreed that no changes would be made to the way the stormwater rate is currently distributed. Operating costs for the networks will continue to be split evenly (equalised) among those paying the stormwater targeted rate, with capital costs payable by those on each network. Ten percent of stormwater activity will continue to be funded through general rates.

Community consultation and a council decision will be scheduled for later this year, ahead of local elections in October. Council will continue to use land value as the basis for general rates calculations for the 2025/2026 year.

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