Public consultation has opened on proposed changes to Carterton District Council [CDC]’s rating structure, including a proposed targeted rate for economic development.
The council unanimously decided at an extraordinary meeting last Friday to ask for public feedback on its draft revenue and financing policy, which includes the rating review.
Carterton mayor Ron Mark noted at the meeting that the review includes both minor tweaks and some fundamental shifts. At the end of the day, it’s a consultation,” he said.
“We are here to hear and to take note and then come back and, based on that, deliberate. And then make our final call, as the council. This is a proposal, for open discussion.”
Finance consultant Bronda Smith said the council hopes for feedback from a wide cross-section of people.
“We really are hoping we actually hear from the community. The biggest part is that we hear from [people] across the board, which sometimes is pretty hard to do,” she said.
A report tabled at the meeting said doing the review now means community views can be considered ahead of next year’s long-term planning process.
“As we are consulting prior to the Long-Term Plan [LTP] … there is time for any changes that may be raised requiring additional consultation to be included,” it said.
Councils have a legislative requirement to review and update their revenue and financing policy regularly, and the report noted a review is due. It will review the allocation of rates and what share of the rates each ratepayer should pay, the report said.
“A rating review is not about how much should be collected in rates. The amount of rates income required is the result of the budgeting processes. A rating review will not reduce the amount of rates paid overall.”
One of the key considerations of the review includes which community, or part of the community, gets the benefit of various services.
Proposed changes include adding a targeted rate for economic development, adjusting the rural differential for the general rate from 0.8 to 1, and changing the public/private split for water and wastewater to reflect any changes in benefit to the community.
“Council consider it is appropriate to introduce a targeted rate for economic development, based on who receives the greater benefits,” the report said.
“Although council considers there is specific benefit to the business community, the community as a whole also benefits from a healthy district economy.”
Therefore, the council proposed the public/private split to be 50 per cent public funded by general rates, including the uniform annual general charge, with the remainder funded through the targeted economic development rate to the commercial/industrial sector.
CDC also proposed the rural sector pay the same rate as residential properties.
“The activities covered by the general rate are available to all of the community and council considers it is more appropriate that the rural sector have the same differential as the residential sector,” the report said.
Consultation opened yesterday and will continue until early November. More information, including how to make a submission, is at cdc.govt.nz/ratesreview2023/
– NZLDR
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