Rates Income Rise of 2.3% for Tasman District to Invest in Range of Services

Monday 28 May 2018

An overall rates income increase of 2.3% is planned for Tasman District, and will help deliver a range of projects including improved drinking water supplies, investment in transportation, stormwater and wastewater to cater for growth and development, and funding for community facilities such as the Motueka Library and Tasman-based visitor information centres.

The Tasman District Council is looking at an overall rates income increase of 2.3% for the coming year, within its self-imposed 3% cap (excluding an allowance for population growth), although the effect of 2017 revaluations combined with decisions on the Council’s 10-year plan means individual ratepayers will see a range of changes in their next bills.

Tasman Mayor Richard Kempthorne said the Council had worked hard to constrain rates increases.

“We’ve committed to that and I think the level of rates income increase is a good result for our District, particularly given the large-scale investment in infrastructure needed over the next 10 years to support a growing population and meet the District’s drinking water supply and quality challenges.”

However, Richard said the Council was aware individual ratepayers would experience a range of changes in their next bills because of the combined effect of Tasman’s capital value rising 22% in the 2017 revaluation and the Council’s decisions on its Long Term Plan 2018 – 2028 (LTP).

Effect of the Revaluation

In September 2017 Quotable Value carried out a revaluation of the capital value of properties in Tasman District. The average increase in capital value was 22%. The valuation does not change the Council’s rates income. However, it does change the way rates are distributed across properties.

If you think of the Council’s rates income as a pie, the revaluation does not increase the size of the pie. However, an individual ratepayer’s slice of pie may get smaller or bigger, depending on whether their property increased by more or less than the 22% average.

An analysis of average value increases for different property types is available on the Council’s website at: www.tasman.govt.nz/link/2017-revaluation.

Richard says: “The revaluations provide a reflection of the market value of properties at the time it was done, and that is not something the Council has any control over. The increase in the District’s capital values does not increase the Council’s total rates revenue.

“However, it does change the way the rates burden is spread across the community, and unfortunately that will mean a percentage increase for some people whose properties have increased significantly in value.”

Effect of the Long Term Plan 2018 – 2028  (LTP)

The Council is due to adopt its LTP on 28 June 2018, having consulted and held hearings and deliberations on the plan throughout March, April and May.

The plan sets out the projects, budgets and priorities for the Council over the next 10 years. The decisions mean the Council will collect 2.3% more in rates in the 2018 – 2019 financial year. However, individual ratepayers will see differing effects depending on the types of rates they pay.

Combined Effect

An analysis of sample property types in Tasman showed rates changes ranging from 12% decreases up to 12% increases. It is likely a small number of property owners will experience higher decreases or increases.

Richard said the Council was very aware of the significant effect on some people’s rates that had arisen from the combination of the revaluation and LTP decisions.

“We’ve tried to temper that as much as we can by keeping our overall spending programme within strict constraints. However, there are some significant challenges facing our District that the Council has to tackle, including the need to provide new or upgraded infrastructure for our growing community and to ensure we continue to provide safe, secure drinking water for our residents and businesses.

“Your rates are an investment in the current and future wellbeing of the place you live. They are your contribution towards ensuring we continue to enjoy a happy, healthy and prosperous District.”

Rates bills for the 2018 – 2019 financial year will be sent out to property owners in August.