Whangarei District Council (WDC) is about to go through the process of a Rating Review. The Review will look at how our rates are calculated, and what we are being charged for items such as refuse management, water supply, sewage disposal, and so on.

Many people are asking why a review is necessary?  Council reviews the rates every year and a full detailed review is necessary now, which will include a review of all systems.  This means the public, as well as specific interest groups, will have a say, and hopefully will all have been heard by next year.

This is an extraordinarily important issue and concerns all ratepayers, so I urge you to take part and to register your views with your local councillor, both on the process to be adopted, and on the review of rates itself.

For instance, presently Whangarei District Council sets rates according to the Land Value system. This means that WDC currently charges each business or home on a particular block rates according to land value and targeted rates. If the building started with one business but now includes three, each of those businesses is charged revised rates (SUIP’s), therefore each of the three business will have their rates charged separately, instead of one set of rates for the whole property.

The other commonly used system (not in place in Whangarei District) is to charge rates based on Capital Value. An example of the Capital Value system, rates could be charged on the value of the property, and if that property is then utilised by more businesses, the same amount is charged for rates, and it is up to the landowner to decide how those rates are split.

Presently WDC does not charge differentials on rates, however when calculating rates for commercial properties, they are six times that of residential properties, and rural rates are charged at 0.9 of residential rates.

Are you happy with that?

The longer story made short in a quite complex issue, is that WDC needs to gather $140 million in order to maintain and develop infrastructure in Whangarei District.  No matter what rating method is used, that is the required amount. The question is around how that $140 million is split and charged via the rates system.

Who will pay how much?

Please, have your say

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