Rating Policy

The rating system is the mechanism by which the net funding requirement of the Council’s programmed works and services detailed in the LTP are charged to the District’s ratepayers. Rates are levied as a tax on property in compliance with the Local Government (Rating) Act 2002.

The general and targeted rates are charged based on values supplied by Quotable Value New Zealand. Rates for the 2021/22 financial year will be based upon the district revaluation dated October 2019.

Targeted rates are levied in the areas where the works and services are being provided. In 2021/22 targeted rates such as CBD Upgrades (Targeted Rate) Security Patrol, and City Marketing/Promotion will be levied in each of the respective central business areas of Hastings and Havelock North set on a land value basis.

The Council also levies a targeted rate (set as a fixed amount) where the receiver of a benefit from a specific service can clearly be identified. In 2021/22 targeted rates will be levied to recover the full costs of water supply, wastewater disposal, kerbside recycling, refuse collection, Waimarama refuse collection, Havelock North parking, swimming pool safety, and a Whakatu stormwater rate (set as a fixed amount per hectare). In addition a targeted rate (water by meter) for water supply is based on the volume of water supplied to meet the cost of the extraordinary supply of water. Targeted rates are also levied to recover capital contributions from residents connecting to new supply extensions in some areas. In addition, the 2021/22 plan proposes to continue funding 80% of the cost of wastewater treatment through a targeted rate.

The Council also levies a uniform annual general charge across all rating units in the district. This is a uniform charge levied across all separately used or inhabited parts of a rating unit irrespective of land value. Those activities included in the charge are: Leadership, Valuation Services & Rate Collection, Economic & Social Development (65%), Civil Defence (50%), Wastewater Treatment (20%), Waipatiki Sewage (20%) and Waimarama Sea Wall (10%).

A Community Services and Resource Management Rate sets a targeted rate as a fixed amount per separately used and inhabited part of a rating unit to fund 35% of the Councils community facilities and planning and regulatory budgets. This rate will be set on a differential basis and based on the location of the land within the district.

Rating Structure

After identification of the public benefit component of Council’s activities, two methods are used to determine the allocation of cost to an individual property as follows:

Rating Areas The district is divided into two distinct rating areas based upon the following factors:

• A broad Department of Statistics definition of an urban area with a boundary based on effective daily links to the city;

• Relative opportunity to use urban based facilities within an approximate 10-15 minute radius of the city;

• The Hastings District Council planning zones which influence the opportunity to use land; and

• The types of land use within the district.

The costs of Council’s various activities are apportioned into the two rating groups using agreed formulae which reflect, as near as possible, the costs of providing services to each of these areas.

A weighted discounted population formula is used to apportion a range of costs within the Community Services Group. A discounting factor of 50% is applied to Rating Area Two, to account for remoteness from facilities.

Differential Rating Within each rating area the Council recovers the majority of the general rate requirement on a differential basis on the land value of a property.

A change to the system of differential rating is being implemented and is covered in the next section ‘Changes to the Rating System’.

Changes to Rate Remission Policies

The Local Government Act 2002 requires Councils to review their rate remission policies every 6 years. The Council have undertaken this review and assessed that the current range of policies are fit for purpose and are meeting their objectives, other than an addition to recognise the extent of use of the kerbside refuse and recycling service – these can be found in this document.

Payment

Rating by Instalments The Council provides for rates to be paid in four three-monthly instalments. The due dates for payment falling in August, November, February and May.

Water by Meter For those properties that have Water levied by meter, invoices will be issued either threemonthly or six-monthly.

Additional Charges for Late Payment An additional charge of 10% is added to each instalment, which remains unpaid after the due date. Previous years’ rates which are unpaid will have a further 10% added, firstly, in July 2021 and, if still unpaid, again in January 2022.

An additional charge of 10% is added to water by meter invoices if not paid within 30 working days of due date. Previous years’ water rates which are unpaid will have a further 10% added, firstly, in July 2021 and, if still unpaid, again in January 2022.