Change to rating system mooted
29 January 2015
Waipa ratepayers will be asked to consider changing their rating system.
The proposals for change are outlined in the Council's draft 10-Year Plan which will be formally released for public comment in March.
Mayor Jim Mylchreest said the proposed changes were not about increasing rates or increasing the total amount of rates paid.
We're not talking about increasing how much money is collected. We're talking about cutting the pie differently and splitting rates more fairly among property owners, he said.
We need to look at issues like equity and ensure rates are affordable, particularly for those on low or fixed incomes.
The Council wants to increase the percentage of rates based on the capital value of a property, meaning those with higher value properties would pay more. Currently 55.3 per cent of rates comes from a general rate based on a property's capital value. Over six years, if the proposal goes ahead, this portion would go up to 62.7 per cent.
At the same time, the Council wants to bring in a Uniform Annual General Charge - a fixed rate to be applied to every separately occupied part of a property - and also wants to reduce the targeted ward rates.
At the moment, Waipa properties with one house pay exactly the same amount as properties with two or more dwellings, including retirement villages, blocks of flats, farms with multiple farm cottages or houses with self-contained granny flats. We don't think that's necessarily fair.
The proposal has already been discussed with those potentially negatively affected, including local retirement villages and Federated Farmers.
While they may not necessarily like what we're proposing, most can see the current system is not fair or equitable. However, we did get some very good feedback from them and as a result we've made some changes to what we were initially thinking.
If the changes go ahead, future Waipa rates bills would include a much smaller targeted ward rate (which helps pay for specific facilities in different parts of the district), a general rate based on the capital value of the property, a Uniform Annual General Charge (a flat rate based on each separate dwelling or business unit) and any other relevant service charges or specific rates for that property.
The proposals, including the potential impact on different properties, will be outlined in the Council's draft 10-Year Plan consultation document to be released in March. At the same time, an online rates calculator will be available for people to assess the impact of the proposals on their own rates.
Council will asking for feedback on the draft 10-Year Plan until mid-April.
All media enquiries, contact Jeanette Tyrrell (on behalf of council) 027 507 7599