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Revenue and Financing Policy Consultation

Our Thriving Future, Our Rates Review.

Central Hawke's Bay District Council is proposing a re-allocation of rates and what share each ratepayer should pay across five areas of activity.

This consultation has now closed. If you have submitted and indicated that you would like to present at a hearing, Council will be in touch in due course.

We’ve all got big goals for our district and now, together, we need to decide how we’re going to bring these plans to life.

Approximately 65% of Council’s income comes from rates and we know how important it is that this money is spent wisely. With the impacts of COVID-19 and the drought resulting in financial strain being felt by so many, never has this been more apparent.

As part of the process of developing the Council’s Long Term Plan 2021-2031, Council has taken the opportunity to undertake a rating review – the first in over 10 years. This is a review of the way Council structures its overall rating system to share the rating burden among all ratepayers.

We understand it’s a really hard time to be thinking about making financial investments in our future and ask that you think through the long-term benefits of this investment. If you’re struggling now, Council can help you so please get in touch.

WHAT IS THE REVENUE AND FINANCING POLICY?

The policy lays out how we fund all of Council’s operating and capital activities, across Central Hawke’s Bay.

The policy isn’t about how much we plan to spend, but how we intend to spread the cost of services across the District, and across the different groups of rate payers.

WHAT ARE WE PROPOSING WILL CHANGE?

Five activities have been identified as requiring a change in how their activity is funded, in particular the split between what is collected through the rates, and what is collected through fees and charges:

1. Land Use and Subdivision Consents

The Council is required to prepare, implement and administer a District Plan that meets the needs of the community. The Resource and Subdivision Activity ensures that development occurs in a manner that complies with the District Plan, through processing resource consent applications and monitoring.

Over the years the current policy (which currently states that this is funded by fees and charges (37-49%), and the balance being collected through general rates) has got out of step with current practices. The proposal will update the policy to reflect these current practices, but won't impact on the level of fees required. 

It is proposed that Council moves this activity to be funded 70-80% through fees and charges, with the balance being collected through general rates.

2. Animal Control

This activity includes the implementation of requirements of the Dog Control Act 1996 and related legislation and Council bylaws. Main objectives include education, response to complaints and management of registration systems for dogs and stock. Currently, this is funded through various fees and charges (91-95%) - including fines and impounding costs, and the balance through general rates. 

It is proposed that Council moves this activity to be funded 90-100% through user pays, with the remainder from rates.

The user pays funding will be collected through various fees and charges – including fines and impounding costs. Rate funding will be based on a capital value based general rate.

3. Compliance and Monitoring

Compliance and Monitoring primarily involves the monitoring of resource consent conditions, responding to noise complaints and bylaw breaches, and carrying out territorial authority responsibilities as defined in legislation such as the inspection of swimming pool fences, earthquake prone buildings, and processing of Land Information Memoranda (LIMS), Compliance Schedules and Building Warrants of Fitness. Currently, this is funded by user pays (10%) and the balance from general rates. 

It is proposed that Council moves this activity to be funded 10-25% through user pays, with the remainder from rates.

The user pays funding will be collected through various fees and charges including fines. Rate funding will be based on a capital value based general rates.

4. Stormwater

Central Hawke’s Bay District Council has a number of stormwater systems. The systems generally consist of a primary piped network with some open channel and secondary flow paths.

It is proposed that Council moves this activity to be funded 80-90% private funding.

Private funding will collected through a targeted rate from those within stormwater catchment areas, with the remainder from public funding.

Public funding will be collected through the capital value based general rate. The funding of the Te Aute drainage scheme will be based on a targeted rate on scheme members. 

Currently Stormwater Targeted Rates are levied off properties within the Waipawa / Waipukurau Catchment areas and are spread based on Capital Value. With the growth of the district, Council now supplies some Stormwater activities in Takapau and Otane and this is only going to increase in the future.

Therefore Council proposes the stormwater rating areas be increased to include these towns as identified in the following maps:

Takapau Stormwater

TakapauStormwaterDetails

Otane Stormwater

Otane Stormwater

Stormwater activity is supplied to Takapau and Otane through a combination of footpaths with curb, and channel and open drain. Council acknowledge that the quality of stormwater assets in Otane and Takapau are not built to the same standard as Waipawa / Waipukurau at present, so propose the levy be discounted when compared to the Waipawa / Waipukurau networks (although this might change over time).

Council therefore proposes to extend its Targeted Rate for Stormwater Rate to include Otane and Takapau based on the properties within the zones identified in the maps above, but apply the following differentials to account for the difference in standards of the different networks.

Activity

Differential to be applied to Stormwater properties within the identified zones

Zone 1 – Waipawa/Waipukurau

1.0

Zone 2 – Otane

0.8 

Zone 3 - Takapau

0.6 

5. Central Business District

At present the Commercial and Industrial properties in the main townships pay the same level of rates for general rates as residential properties (all be it with the general rate adjusted by the properties capital value).

While businesses in the central business district pay the same, they receive a additional benefit than residential properties. For example commercial and industrial properties enjoy the provision of wider footpaths, additional litter bins, on street parking for customers, additional landscaping in pocket gardens and hanging baskets.

Council propose that due to this, a commercial/industrial differential to rates should apply.

Within Councils existing District Plan, Council already have commercial and industrial zones identified as set out in the maps below:

Waipawa Zones

Waipawa District Plan Zones

 

Waipukurau Zones

Waipukurau District Plan Zones

Council proposes the introduction of the following Commercial/Industrial differentials be introduced for the calculation of general rates:

 

Activity

Differential to be applied to general rates for properties within the identified zones

Zone 1 - Commercial

2.0

Zone 2 - Industrial

1.75

Not Elsewhere Specified

1.0

WHAT IS THE IMPACT ON MY AREA FROM EACH OF THESE FIVE CHANGES?

Our proposed approach to each of the five activities would mean rates reduce in some areas and increase in others. To find out more about the Revenue and Financing Policy, please read full document available online at www.chbdc.govt.nz or from the Council Office on Ruataniwha Street, in Waipawa.

WHEN WILL THE PROPOSED CHANGES TAKE PLACE?

Council is setting the direction of the 2021-2031 Long Term Plan. We’re consulting on the proposed Revenue and Financing Policy now, so we can model rating in the Long Term Plan. Any changes however won’t come into effect until 1 July 2021.

 

Have Your Say, Central Hawke's Bay!

Tell us whether you think this is the best way to distribute your rates 

Feedback closes midnight 23 September 2020.

HAVE YOUR SAY ONLINE

To send an online submission, please fill out the form at the bottom of this page. Please scroll down to view the form. 

HAVE YOUR SAY IN WRITING

To have your say, download and print the submission form found here and return to Central Hawke’s Bay District Council by post or in person to, PO Box 127, 28 – 32 Ruataniwha Street, Waipawa 4240. You can also drop your form to the Waipawa Library, or Waipukurau Pop-up Service Centre. 

You can also collect a printed consultation document from the Council office, Waipawa Library or Waipukurau Pop-up Service Centre. 

SPEAK TO SOMEBODY ABOUT THE PROPOSAL

Between 24 August to 23 September, Council intend to hold several public meetings, to be held in Otane, Takapau and Waipawa. Meeting times will be confirmed once COVID-19 Level 2 restrictions ease and will be found at this page. You can also contact Council on 06 857 8060. 

SPEAKING AT A HEARING

If you make a submission about any of the activities included in this consultation document, you have the opportunity to speak to the Mayor and Councillors at a public hearing. Please let us know in your submission if you would like to attend a hearing and speak to your submission. We will contact you with details and dates for the hearings process, once the formal consultation period has passed.

FURTHER INFORMATION

You can read the Proposal and Draft Policy online here

To read Central Hawke’s Bay District Council’s current Revenue and Financing Policy, please view our Long Term Plan 2018 – 2028

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