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What it means for our money

Long Term Plan 2021-2031 consultation has closed

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What will it cost

Council owns and manages over $2.5 billion of infrastructure, assets and facilities. This includes water pipes, land, roads, buildings and even the swings at your local park.

To get us to where we want to go, we’ll be investing in upgrades and renewals of our key infrastructure over 2021–2024. Even with our cautious approach to Covid-19, we estimate we’ll need $1.25 billion in operating costs over the next ten years to keep what we have and supply all the services we need.

Our capital spend to upgrade or replace our assets is forecast to be $452 million.

Total expenditure

Where will the money come from?

Ka ahu mai ngā moni i whea?

We’re balancing the books to maintain the infrastructure and services we need, with how much we can afford to pay.

Our proposed rates increase won’t cover everything we need, so we’ll look to use reserves, loans and grants to help fund our plan.

Our total forecast expenditure is $112 million more than our projected source of revenue. This difference will be recovered from Waka Kotahi for their share of replacing our roading assets

Projected revenue

Financial changes

Ngā whakarerekētanga ahumoni

We’ve made a number of financial policy changes since our last LTP. These changes ensure our rates accurately reflect the services that we rate for. The three key themes that shaped our decisions were your ability to pay rates and who pays for our road maintenance and our infrastructure.

We’ve set aside $1million in our reserves to support our community in case of another Covid-19 resurgence.

We’ve developed with our regional partners overarching priorities to support funding requests to Government in our response and recovery Covid-19 Plan.

Rau Tipu Rau Ora

We’ve consulted on and completed a Revenue and Financing Policy. This has resulted in changes to:

  • roading rates for the forestry sector to reflect repairs and renewals to roads used by the forestry sector.
  • the general rate so that we all pay for water, wastewater and stormwater. This change recognises the wider regional benefits we all gain from these rates.
  • two wastewater rates (Wastewater Connection rate and the Wastewater Pan (toilet) rate) have been combined. This means the amounts paid will be less for single dwelling residential properties, but more for multiple dwellings - such as retirement villages.
  • stormwater rate which will increase for multi-unit households and reduce for single unit households - such as rest homes.
  • collecting rates to promote tourism. The focus will be a regional approach to promoting Tairāwhiti. This means everyone across the district will pay towards regional promotion. Before it was strictly targeted to a small group of business owners located in the CBD.

Revenue and Financing Policy

We’ve changed development contributions to ensure users who benefit from Council activities and infrastructure pay for them, especially industry.

We’ll either maintain or introduce new levies/user fees and charges to offset our reliance on rates revenue for those services.

A development contribution is a levy on new developments - such as buildings, industry or horticulture.

We collect them under the Local Government Act 2002. They ensure the costs of extra demand on council infrastructure from the development are not imposed on the community.

See our Draft Development Contributions Policy

What does it mean for you and your rates?

He aha ngā pānga ki a koe me o rēti?

On average we estimate that every household will pay $8.48 per day for the first year of this plan, or around $3,095* per year for the activities and infrastructure in our plan.

To cover the costs of this plan the maximum average increase to rates over the first 3 years is 6.5%, dropping back to 5% after that.

This doesn’t mean everyone’s rates will increase by that amount.

In 2020 we completed rates revaluations for every property in Tairāwhiti.

The new valuations take into account the changing market, land and capital values in our region. This will affect all properties differently.

Between 60%-78% of residential, industrial and horticulture properties will receive rates increases.

Proposed rates changes

Ngā whakatakoto whakarerekē rēti

  • changes to the value of your property, including improvements or changes you’ve made.
  • the services your property is rated for.
  • changes to the amount we charge.

Rates per day

Rates calculator

Check the proposed rates for your property

What's driven the proposed rates changes?

Residential city - Most individual household rates will reduce, due to changes in how wastewater and stormwater are now rated. Rates for properties with multiple households or flats will increase.
Residential rural - Increase to rates are due to higher charges for the district for activities and for waste disposal at transfer stations.
Industrial - The increase is driven by higher than average property valuations.
Pastoral - Increases are to farms that have forestry blocks. This is because of the high cost of fixing and maintaining our roads. 
Horticultural - Licences for certain crops such as kiwifruit are worth more. This is reflected in the revaluations and means an increase in rates for horticultural properties. 
Forestry -  Increases are because it costs more to fix and maintain our roads. This sector is charged 12 times more for roading rates than standard
residential property owners.

Supporting information

Sections of the Long Term Plan