Rates: more the merrier
Posted at 2:39pm Friday 10 Sep, 2021
Ratepayers will be hit in the pocket a little less than expected – because there are more of them.
Queenstown Lakes District Councillors have approved a rate take lift of 4.38% for 2021-2022 – slightly down on the increase they expected.
Following Ten Year Plan submission in March and April, it was anticipated the rate take required would have to rise 5.45 percent - up from the initial proposal of 4.56 percent.
General Manager Finance Legal and Regulatory Stewart Burns said the 4.38 per cent final figure was lower than expected because of growth across the district being greater than expected.
The total number of rateable properties rose from 28,573 to 30,229 – up almost six percent in a year.
“Essentially there are more properties, and properties that have increased in value, from which to collect rates than were forecast at the time of developing the draft Ten Year Plan,” he said.
Property values do not impact on the overall rate take. Councils decide how much they need in rates, and the capital value of properties is a key factor in how much the owner will pay. The council then adds costs for specific services.
The council was told the district-wide annual increase in capital value had been 3.55%, and the figure allowed for in the 10 year plan was 2.5%.
Wānaka ward at 4.11 percent led the way from the Wakatipu/Arrowtown wards, 3.3 percent.
So for the coming year, residential rates are set to increase by between 1.49% to 6.39% and business rates will go up between 0.85% to 5.72%.