Setting the Rates
Ever wondered how the Council decides how much your rates will be? Get the facts here.
What are rates?
Rates are a levy paid annually by property owners to their local Council. The Council sets the rates every year to help fund community facilities, services and projects within the annual plan.
Our district is facing rapid growth and community expectations of Council activities are high. This, along with the capital value of your property, is reflected in the annual rates.
Council activities are funded in a number of ways. The Council will always attempt to fund a service, project or activity using fees and charges, such as land sales or development contributions, or by grants and subsidies. Once these funding avenues have been exhausted and the activity still requires funding, the remainder is generally funded by a rate.
How are the rates set?
The Council rates properties according to the capital value. Quotable Value NZ Ltd (QV) provides the valuations to council.
During the year, Lakes Environmental provides QV with details of building consents and new subdivisions that have been approved. QV then provides updated values based on this information. In turn, the updated values are used to help determine the following year’s rates. A district-wide revaluation takes place every three years. The next government valuation is due in 2014.
The annual rates are determined through the Council’s annual plan / council community plan process. Once the total rate revenue is determined, it is then apportioned out to individual properties throughout the district, based on the use of the property and its capital value.
There are two types of rates:
- General Rates - this includes the Uniform Annual General Charge and capital value based rate.
- Targeted Rates - this includes tourism promotion rate, water supply rate, sewerage rate, stormwater rate, waste management rate and roading rate.
Rates are also based on what a property is used for, for example residential or commercial.
The recommended average rate increase for 2012/13 is now forecast to be 2.68%
Read a presentation by QLDC Finance Manager and Deputy CEO Stewart Burns regarding the proposed rates review, consulted on through the 10-Year Plan
Here's some more information to help you understand the issues.