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Thursday, 02 September 2021
Councillors approve lower than expected rates increase
Councillors today approved an average increase to rates of 4.38% for 2021-2022
Queenstown Lakes District Councillors today approved an average increase to rates of 4.38% for 2021-2022 at an extraordinary Full Council meeting held this morning via Zoom.
As a result of the 2021-2031 Ten Year Plan submission process undertaken in March and April, the overall average rates increase moved from 4.56% (at the time the draft plan was put out for community consultation) to 5.45% (once the consultation period had ended and changes made as a result of submissions), after allowing for growth. The actual average increase now sits at 4.38%.
QLDC General Manager Finance Legal and Regulatory Stewart Burns said this figure was lower than expected due to growth across the district exceeding forecasts.
“This growth reflects new buildings, additional buildings and sub-divisions created in the previous 12 months. Essentially there are more properties, and properties that have increased in value, from which to collect rates than were forecast at the time of developing the draft Ten Year Plan,” he said.
“The total capital value of property across the district increased by 3.55% in the year to 30 June 2021, slightly more than the 2.5% allowed for in the Ten Year Plan. In addition, the total number of rateable units for 2021-2022 is estimated to be 30,229 which represents an increase of 5.8% on last year. The rating unit growth factor for the year is therefore also ahead of the 2.5% forecast allowed for in the Ten Year Plan.”
Mr Burns explained the impact of the rates increase for 2021-2022 will not be even across all property types and locations.
“This is largely because of the impact of targeted rates which are often ward or scheme based. But, even taking into account different levels of growth within the district, rates are lower than anticipated across all property types and areas,” he said.
The main features of the 2021-2022 rates movement for median value properties are:
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Residential rates are set to increase by between 1.49% to 6.39% per annum depending on value, location and property type;
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Most business rates show an increase to last year of between 0.85% to 5.72%, depending on value, location and property type.
For both residential and business rates, these final figures reflect a more favourable outcome than presented in the final Ten Year Plan.
Setting Council rates is a procedural item that effectively closes the 2021-2031 Ten Year Plan process and the funding for the programme of works it sets out.
ENDS|KUA MUTU.
Media contact: communications@qldc.govt.nz or call 03 441 1802.