Statement of Proposal

We are reviewing a group of our financial policies as required under Section 102 of the Local Government Act 2002 (LGA). The policies being reviewed include the:

  • Remission policies, proposing to combine the Remission of Rates Policy, Water by Meter Leak Write-off Policy and the Coastal Erosion Policy into a single policy.
  • Remission and Postponement of Rates on Māori Freehold Land Policy.
  • Revenue and Financing Policy, which sets how rates are structured.

These policies guide how decisions are made to set rates in the Long-Term and Annual Plans, who is eligible for postponement or remission of rates once set, and how they can apply for postponement or remission.
 
We’re proposing a few changes and need your feedback so we can ensure the policies reflect the views of the community. The full consultation document and draft policies can be found on our website here.
 
 

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* 1. Please enter your contact information.

Please note that your name and feedback will be in public documents. All other personal details will remain private.

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* 2. Remissions of Rates Policy

Under the Local Government (Rating) Act 2002, land owned or used by a society or association, for games or sports, should pay no more than 50% of their general rates. Participating in sporting activity has known benefits to community wellbeing and Council are interested in hearing your thoughts on the rates remission for community games or sports grounds.

Do you think that the rates remission on general rates for community games or sports grounds should change from 50% to 100%? This means that community games and sports grounds would have 100% of their rates reversed. 

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* 3. Do you have any further feedback on the draft Remission of Rates Policy?

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* 4. Remission and Postponement of Rates on Māori Freehold Land Policy

Council notes that an addition to the proposed Remission of Rates Policy, enables remissions to sites of significance to Māori, as described in the Combined District Plan, that are not on Māori Freehold Land.

Do you have any feedback on the draft Remission and Postponement of Rates on Māori Freehold Land Policy?

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* 5. Revenue and Financing Policy

Capital Value or Land Value?

Council is proposing a change from rating on capital value instead of land value. No system is ideal, however on balance, Council believes that capital value is fairer than land value. Considering the overall rating impacts across different groups of ratepayers and individual properties, Council considerers capital value represents a better correlation to ability to pay than land value.

What is the difference between capital value and land value?

Capital value is the total value of the land and improvements, i.e. the land and any buildings on the land. Land value is the value of the bare land.

Do you agree with Council’s proposal to change the general rate to capital value from land value?

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* 6. Who should pay for footpaths?

Footpaths help our communities stay connected locally and support us to move around without relying on vehicles. Council is proposing a change to the way footpaths are funded. This change recognises that urban people benefit more from footpaths than those who live rurally.

Do you agree with Councils proposal that 90% of the benefit and costs of footpaths should be paid by urban ratepayers and the remaining 10% by the district as a whole?

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* 7. Should we replace our Rural Road Reserve with an Infrastructure Emergency Resilience Fund?

Over the past two years, we have had many significant weather events that have impacted our communities. Council is proposing changing the Rural Road Reserve to an Infrastructure Emergency Resilience Fund. This is an expansion of the current Rural Road Reserve to cover more than just rural roads and would be collected from everyone, not just rural ratepayers.

Currently, the Rural Road Reserve is funded by rural ratepayers to cover emergency road repairs and has been used up. Council proposes to replace it with the Infrastructure Emergency Resilience Fund that would be collected from all ratepayers through a targeted rate based on capital value and would be used to repair infrastructure in an emergency that was not funded by central government. This amount would be set through the long-term or annual planning process.

This change recognises that rural roads have benefits for the whole community through tourism, recreation, and farming. This means that all ratepayers would be contributing to this fund, which would more fairly reflect the contribution from the whole community.

Do you agree with Council’s proposal to create an Infrastructure Emergency Resilience Fund through a targeted rate to all rates payers?

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* 8. Should dwellings used for short-stay accommodation e.g. Airbnb, Bookabach or similar, contribute to the economic development rate?

Tourism is one of the fastest growing industries in the South Wairarapa and has an impact on the wellbeing of our communities. To support tourism in the district, Council has an economic development targeted rate that is used to promote the region, its activities, and events. This is currently paid for by commercial and industrial properties.

Dwellings used for short-stay accommodation also benefit from the investment in economic development. Council is interested in hearing from the community if short-stay accommodation properties should therefore contribute to the economic development rate.

Do you believe that dwellings used for short-stay accommodation should be included in the economic development rate?

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* 9. How would you recommend that Council define and identify these dwellings, for example through self-identification or registration (fees may need to be collected to cover the administration costs)?

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* 10. Further Feedback?

Council is interested to hear any other ideas you may have on the proposed rating model that may not have already been captured.

Do you have other further feedback on the draft Revenue and Financing Policy?

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* 11. Would you like to speak to your submission at the upcoming hearings scheduled for Thursday 26 October? We will do our best to meet your preference for a hearing time, noting we have limited flexibility. 

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