Cushioning The Blow - Rates 2020-21

Council continues to grapple with the challenge of rates affordability and equity of rates distribution. The strategy over the last couple of years has been a view towards driving more rates away from fixed charges and to leverage rates against the capital cost of a property. This is based on a national approach to rating that the higher the capital value of a property the more likely the ratepayer can afford and pay for the rates.

However ongoing costs increases in wastewater, water and refuse which are a fixed component of your rates goes against this strategy. This results in the costs of the overall increase falling unfairly across some rating categories.

In a time when there is a proposed 0% general rates increase, a change to the uniform annual general charge (UAGC) can provide opportunities to shift the rates distribution from fixed charges towards the capital value. In the current situation increased costs in waste water, water and refuse mean the distribution of the overall rates increase is impacting most on lower capital value properties.

We are proposing a reduction of $25 to the UAGC to achieve a fairer and more even impact of the targeted rates increases.

A sample table of the changes described above that would likely affect Residential/Rural Residential Properties:

Your rates

There is a example table of sample properties and the proposed rates for 2020/21 that includes the proposed reduction of the UAGC by $25 on page 24 of the Annual Plan 2020-21 Consultation Document here.

For the proposed rates for an individual property use our online tool here. The calculator shows what the proposed increases in rates for your property will be.

To further help to cushion the impact Council has developed a 'Rates Deferral Scheme' - for further information and to make an application here

For further information on rates and understanding your bill: www.rotorualakescouncil.nz/rates