Rates – Some useful info

What is the 2017/18 rates increase for all residential, commercial and rural ratepayers?

The average rates increase for the 2017/18 year is 4.5%.

The distribution of the 4.5% rates increase across the residential, rural and commercial is significantly impacted by the 3-yearly revaluation of the City’s 18,400 properties by Quotable Value.

This video explains how new house values affect rates.

Note: revaluations don’t result in the Council receiving any more or less income, they change the proportion of overall rates each person or business pays.

The revaluation has resulted in the residential sector having a higher average rates increase than the rural and the commercial sectors due to the higher increases in Capital Value for the residential (i.e. 24%) compared to the commercial and rural sectors.

Shown below is the average Capital Value increases for each of the sector:

Description Average Capital Value increase
Residential 24.3%
Rural 13.2%
Commercial 15.2%
Motels 12.6%
Shopping Plaza 11.5%

This has resulted in the average rates increase for each of the sector being as follows:

Description Average rates increase per sector
Residential 6.4%
Rural -1.3%
Commercial 0.6%
Motels 1.5%
Shopping Plaza -2.5%

Why the 4.5% rates increase for the 2017/18 year?

The 2015/25 LTP indicated a rates increase of 5.03%. As part of the annual plan consultation process the Council proposed a 4.9% average increase in rates. After considering the submissions and the additional revenue budgeted from the landfill the Council decided to adopt a 4.5% average rates increase.

Of this 4.5%, 3.7% relates to Council’s 2015/25 LTP commitment to balancing the budget, paying for an extra $40 million on the city’s infrastructure and rating for depreciation. The remaining 0.8% is for the increased cost of providing services.

How does my residential rates increase compare to the rest of the residential sector?

Even though the average rates increase for residential properties is 6.4%, this increase varies between suburbs and for individual properties within each suburb. The average residential rates increase of 6.4% is based on the average increase in the capital value for residential properties as a result of the revaluation being 24%.

Some suburbs have average increases in Capital Value for greater than 24% i.e. Camborne 29.9% increase in Capital Value resulting in an average rates increase of 10.2%.

While other suburbs had a lower average increase in Capital Value than the average of 24% i.e. Aotea 19.9% increase in Capital Value resulting in an average rates increase of 4.6%.

What about Greater Wellington Regional Council rates?

The 4.5% average rates increase does not include Greater Wellington Regional Council (GWRC) rates.
You will receive your GWRC rates bill along with your Porirua City rates bill. There’s been a 5.6% average increase in GWRC.
In Porirua the average Capital Value is $487,000 and the average GWRC rates bill is $565. The average GWRC rates increase is $42.

Does the increase in my property value result in Council getting more rates?

No. The revaluation has resulted in a redistribution of rates across all sectors and ratepayers and has not increased Council’s total rate requirement.

How are rates set?

Every year Council is required by law to review how much money we need to fund all of our services and how much we received from fees and charges (such as building consents, pool entry and venue hire). Any shortfall on what we need and the money received is met by rates collected from residential, commercial and rural ratepayers.

To fund all of our services and any other new activities or unexpected events like increased costs for insurance or storm clean-up determines how much money needs to be collected from all ratepayers.

How are the rates spent?

Rates collected pay for services like parks, the aquatic centre, sports grounds, cemeteries, walkways and network infrastructure for drinking water, sewage disposal, storm water, roads and footpaths. Fees paid by users also contribute to funding many services – like resource and building consents, kerbside rubbish bags, pool entry and venue hire

How do we tell the Council what we think?

Later this year we will start consulting on our next LTP. This is an important opportunity for you to influence the decisions of the Council. If you want your voice heard, we can pass on your name, phone and email to the LTP team. This will ensure you are kept informed and can provide feedback in a timely way so it can be considered in the LTP.