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Dear Waitomo Ratepayer Dear Waitomo ratepayer... Council adopted the Exceptions Annual Plan The rates increase is an average across the fund 46.7% of the total required funding for 2013/14 (Plan) on Tuesday 25th June 2013. District. The actual increase will vary between the 2013/14 financial year. Council recognises As the Plan does not include any significant properties and may also be affected by the and understands the concerns of the District’s amendments to the 2012-2022 LTP, it is not change in individual property values resulting ratepayers’ in respect of their ability to pay required to contain a report from Council’s Auditor from the recent 3 yearly District revaluation. for services and also that rates affordability is on behalf of the Office of the Auditor General. exacerbated in these unsettled economic times. Our inspirational vision “Creating a better This planning process went well and we now future with vibrant communities and thriving Maintaining and replacing infrastructure is look forward to putting the plans into action business” supports our plan is to facilitate one of Council’s key responsibilities and we during 2013/14. The average rate increase better economic and social outcomes for continue to focus in this area. It is worth in this Plan is 3.2% for all properties in the our District. Our goal is to make Waitomo noting that all our capital investment in District, against the original LTP forecast district an attractive place that people will making upgrades to essential infrastructure of 7% for the 2013/14 financial year. choose to come and live, visit or work in. has been delivered on or under budget. The rate increase indicated To achieve this we work closely with all our We are aware that the economic conditions through the EAP 2013/14 is key stakeholders including our local Police, of the last 3-4 years have adversely affected government agencies and numerous community many in our community and we will continue the lowest since 2003 and has groups in Te Kuiti, Waitomo Village, Piopio and our endeavour to provide good been made possible through a Benneydale. We work closely with our youth and quality services and infrastructure commitment to very sound and youth services, to give them a sense of pride that are most needed by our consistent financial management and purpose and belonging to our district. communities in an optimal manner. practices over the last 5-6 years. The services Council provides are funded through Best wishes a variety of sources. Council resolved that rates Mayor Brian Hanna Waitomo District General Revaluation The Rating Valuations Act 1998 requires that A market trend is established and applied to stock, crops, machinery or trees. The valuation every property in New Zealand must be revalued similar properties. Stringent quality standards is deemed to include GST (if any) for residential for rating purposes at least once every three need to be met and the process is independently property, and exclude GST for other property years. The last revaluation for the Waitomo audited by the Office of the Valuer General, a types. District occurred in September 2012. As division of Land Information New Zealand. Council’s appointed Valuation Service Provider, The new values will be first used for Quotable Value New Zealand (QV), undertook the revaluation on behalf of Council. Valuation Notices rating purposes from 1 July 2013. All owners and ratepayers received notices of Changes in rating values for each property are Rating values are assessed on behalf of Council the revised values in October 2012. These not the primary cause of the rates assessed. It is by Quotable Value using a ‘mass-appraisal’ notices detailed the new capital value of your the value of your property in relation to the value process. This method is used all over the world property as at 1 September 2012. The capital of all properties in the area that is the significant and takes into consideration your properties value reflects the probable price that would be factor. If your value increase is at the average attributes and the value of local sales. A rating paid for the property if it had been for sale at the increase for all properties in the District then the valuer will consider relevant property sales from date of the general revaluation. This valuation change in your rates will be minimal. your area around the time of the revaluation. does not include chattels, dairy company shares, My Rating Valuation has gone down but my rates Revaluation Summary of Movements by Sector have stayed the same? Sector No. 2012 Capital Value % Change 2012 LV ($000) % Change There are often a large number of ratepayers scratching their Assessments ($000) heads about why the amount of rates they are being asked to Farming 1,181 1,863,708 -8.5% 1,523,592 -10.2% pay has stayed the same when their property value has gone Forestry 276 96,477 -4.9% 86,346 -5.2% down. Lifestyle 1,310 298,853 -5.3% 154,287 -9.2% The answer is simple. Although determined on 1 September Residential 2,445 323,046 -9.2% 116,434 -4.5% 2012, the new rating valuations will not affect the rating Commercial calculations until 1 July 2013. This is to allow time for people to 201 109,333 -0.7% 40,552 0.8% object to their new valuations and is a requirement of the law. Industrial 108 44,258 -3.6% 5,595 5.0% However, when 1 July 2013 rolls around it doesn’t necessarily Other 529 243,198 -0.8% 24,440 -6.5% mean those ratepayers who have experienced a drop in their TOTAL 6,050 2,978,873 -7.2% 1,951,246 -9.2% rating valuation will automatically experience a drop in that year’s rates. Waitomo District Revaluation Summary The reason is twofold. The overall value of the Waitomo District is $2.979 billion which is 7.2% lower than 1. Rating value is only one of many things considered by 2009. Council when apportioning the rates in the Waitomo District. Fixed charges for services provided, which are not influenced The majority of properties in the Waitomo District are Residential (40%) followed by by the rating value of a property in any way at all, actually rural (24%) and lifestyle properties made up 22% of the district. make up a larger share of most people’s rates. Rural properties make up the majority of value in the district (63% based on capital 2. The rating-value-based part of your rates is expressed as value) followed by Residential properties (11%) and Lifestyle properties (10%). a percentage of the total value of all properties in order to The Capital value of farming apportion the rates. 2012 Value of District Based on Capital Value properties dropped by 8.5% $2,978,873,000 Still sounds tricky? Once you get your head which mirrors trends seen throughout the country. around the concept, it’s actually a piece of cake. Imagine the total value of all properties in your street is a Residential properties showed chocolate cake. The cake is divided into slices based on the a 9.2% average decrease value of each property. Your neighbour’s property is worth more in capital value, 66% of all than yours so they have a bigger slice of the cake than you do. residential properties in the Then you receive your rating revaluations. The value of your District are in the Te Kuiti property has dropped by 7% but so has the value of every house township. on the street. Therefore, your rating value has dropped but your The capital value for mineral percentage total of the cake remains the same, so there will be Farming 63% Residential 11% assessments in the District has no difference in your rating-value-based rates. Other 8% Lifestyle 10% gone up 17%. Industrial 1% Forestry 3% However, if your property’s rating value drops by 7% but everyone else puts in a new swimming pool and their value Commercial 4% increases, you’ll end up with a smaller slice of the total cake and your rating-value-based rates will reflect that change. JULY ISSUE - WAITOMO WAY 1 Rates Newsletter 2013/14 On 1 July 2012, Council implemented the Rates District Rate per $100 Total Revenue following charges for water used by extraordinary Development Capital Value Requirement (metered) consumers other than those connected In setting the level of rates for the coming year, Rate 2013/14 to the Te Kuiti water supply system: your Council continues to consolidate its financial ($000) position whilst delivering essential services on Commercial 0.02677 79 1. Each rating unit will receive a basic allocation a reliable and sustainable basis. Council has 3 and Industrial of 292m per annum. This is the volume of looked long and hard at developing a plan that Businesses water on which the targeted rate per rating seeks to ‘strike the right balance’ between rates unit is based. affordability, robust financial health and the Rural Businesses 0.00414 79 2. Water used in excess of the allocation will be delivery of essential services to serve residents. charged on the cost per m3 applicable to that Council has also endeavoured to keep the Service Charges supply as set out in the table below. required level of rate income at a moderate level. Te Kuiti Urban Stormwater TUAC and Targeted Rate 3. In terms of the provisions of the Water Description of Rates The Stormwater Rates are levied to fund the Services Bylaw water billing for extraordinary Stormwater activity.
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