Me Kōrero Rēti Tātau

Let's talk rates

StatusClosed 14 October 2020
Submissions received183 submissions
Hearings Committee3 November 2020
DecisionChanges to the rating system for inclusion in the new Revenue and Financing Policy and supporting policies.
See the Minutes

About the 5 proposed changes

We took on board community feedback about the ability to pay rates and the way rates are allocated in our region. The consequences of these changes is that by changing how we rate these activities, we have a rating policy that's more consistent across activities and more affordable in those areas where we have identified the ability to pay rates is difficult.

We’ve reviewed our rating system and the 3 major drivers for the proposed changes are:

  • The ability to pay rates for some ratepayers.
  • Road maintenance and who should pay.
  • Infrastructure maintenance and who should pay.

5 proposed changes:

  • Changing the general rate.
  • Changing the roading rate for the forestry sector.
  • Changing how we allocate rates for users connected to the wastewater system.
  • Changing how we allocate the stormwater rates.
  • Removing the rate for city centre management and promotion.

The proposed changes would not change the total amount of money we collect from rates.
We would still collect the same amount.
What would change is how the rates are allocated across ratepayers.

Submissions closed 14 October 2020.

All ratepayers pay the general rate to fund services that our whole region benefits from.

We propose that all ratepayers contribute to the cost of 3 waters (water supply, wastewater, stormwater) and coastal maintenance through their general rate.

This approach is consistent with how we rate other activities that have benefits for the whole community.

This change also helps us prepare for Government’s proposed nationwide reform of Three Waters service delivery. This mean we need to change how 3 waters are managed and provided to all communities.

We proposed to change

  • Add 10% of the cost of water and wastewater services to the general rate.
  • For consistency, reduce the stormwater rate already in the general rate to 10%.
  • Put the cost of managing and maintaining the Wainui coastal maintenance rates into the general rate the same as we do for flood control protection.

More money from the roading budget is being spent on repairing the damage on our roads because of increased logging trucks. The rates we collect from forestry does not reflect the increased spend.

We’re proposing to increase the forestry roading rate, so the forestry sector pays more towards the cost of the damage.

There are 139 properties with 20 hectares or more of forestry that are not paying the forestry roading rates

We’re proposing to change our definition of forestry property to add these properties to those that would pay forestry roading rates. The forestry roading rate would only apply to the area in forestry.

These proposed changes would mean the forestry sector’s portion of roading costs would increase, while everyone else’s portion would go down

What we proposed to change

  • Increase the forestry roading rate.
  • Apply the forestry roading rates to properties with 20 hectares or more of forestry, to the area in forestry.

Some users connected to the wastewater network contribute more per household to the cost of the service than others do.

Currently properties with multiple wastewater (sewerage) connections are not paying the same as a property with a single connection.

We currently have 2 wastewater rates, a pan rate (toilet) and a wastewater connection rate.

What we proposed to change

  • We propose to replace these 2 with one rate. The new pan rate will be higher than the old one to make sure we still collect the same amount of money.

This would mean everyone connected to the wastewater network pays the same.

This would increase rates for multi-unit residential properties and multi-pan non-residential properties.

Some properties serviced by the stormwater network contribute more to the cost of the service per household than others do.

What we proposed to change

  • Change how we rate for stormwater from rating per property, to rating per household.

This would mean all households would pay the same rate for stormwater services.

Business owners in the CBD pay a rate for city centre management and promotion (CCMP). Council contracts Trust Tairāwhiti who are the guardians/kaitiaki for our region’s business success, to deliver these services.

What we proposed to change

  • Remove the rate for city centre management and promotion.

This would reduce rates for those in the CCMP area. City Watch (business area patrol), which includes support for CCTV services would continue to be supported by Council, and this support will be more widely funded, to be consistent with the location of the services.

Removing the CCMP rate would benefit business ratepayers at a time when doing business is extremely challenging. It also allows us to consider new and improved ways to support and promote business as we develop the Long Term Plan 2021-2031.

Supporting documents