Extraordinary Meeting of Council
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Meeting Date: |
Wednesday 11 July 2018 |
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Time: |
3.00pm |
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Venue: |
Council Chamber |
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Council Members |
Mayor Dalton (In the Chair), Councillors Boag, Brosnan, Dallimore, Hague, Jeffery, McGrath, Price, Tapine, Taylor, White, Wise and Wright |
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Officer Responsible |
Chief Executive |
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Administrator |
Governance Team |
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Next Council Meeting Tuesday 7 August 2018 |
Extraordinary Meeting of Council - 11 July 2018 - Open Agenda
ORDER OF BUSINESS
Apologies
Councillor Dallimore
Conflicts of interest
Public forum
Nil
Announcements by the Mayor
Announcements by the management
Agenda items
1 Formal Resolution - Rates 2018/19................................................................................. 3
Extraordinary Meeting of Council - 11 July 2018 - Open Agenda Item 1
1. Formal Resolution - Rates 2018/19
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Type of Report: |
Legal |
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Legal Reference: |
Local Government Act 2002 |
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Document ID: |
477862 |
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Reporting Officer/s & Unit: |
Caroline Thomson, Chief Financial Officer |
1.1 Purpose of Report
To set rates for 2018/19 in accordance with the Local Government (Rating) Act 2002.
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That Council: a. Resolve that the Napier City Council set the following rates under the Local Government (Rating) Act 2002, on rating units in the city for the financial year commencing on 1 July 2018 and ending on 30 June 2019, and that all such rates shall be inclusive of Goods and Services Tax (GST):
(A) GENERAL RATE A general rate set under Section 13 of the Local Government (Rating) Act 2002 made on every rating unit, assessed on a differential basis on the rateable land value to apply to the Differential Groups and Differential Codes as follows:
(B) UNIFORM ANNUAL GENERAL CHARGE A Uniform Annual General Charge of $380.00 per separately used or inhabited part of a rating unit for all rateable land (except that under Differential Code 3.3.8), set under Section 15 of the Local Government (Rating) Act 2002. A nil UAGC will apply for land included in 3.3.8. (C) WATER RATES as follows: 1. Fire Protection Rate A targeted rate for fire protection, set under Section 16 of the Local Government (Rating) Act 2002 on a differential basis and on the rateable capital value on every rating unit connected to either the City Water Supply System, or the Bay View Water Supply System, such rates to apply to the Differential Groups and Differential Codes as follows:
A nil rate will apply for land included in 3.3.7 and 3.3.8. The following rate will apply on the rateable capital value for those rating units not connected to either the City water supply system or the Bay View water supply system, but located within 100 metres of either system.
A nil rate will apply for land included in 3.3.7 and 3.3.8.
2. City Water Rate A targeted rate for water supply, set under Section 16 of the Local Government (Rating) Act 2002 as a fixed amount on a uniform basis, applied to each separately used or inhabited part of a rating unit connected to the City water supply system, such rate to apply as follows:
A nil rate will apply for land included in 3.3.7 and 3.3.8. The following rate will apply for each rating unit not connected to the City water supply system but located within 100 metres of the system.
A nil rate will apply for land included in 3.3.7 and 3.3.8.
3. Bay View Water Rate A targeted rate for Water Supply, set under Section 16 of the Local Government (Rating) Act 2002 as a fixed amount on a uniform basis, applied to each separately used or inhabited part of a rating unit connected to the Bay View water supply system, such rate to apply to the Differential Groups as follows:
The following rate will apply for each rating unit not connected to the Bay View water supply system but located within 100 metres of the system:
4. Water by Meter Charge A targeted rate for water supply, set under Section 19 of the Local Government (Rating) Act 2002, on a differential basis per cubic metre of water consumed after the first 300m3 per annum, to all metered rating units as follows:
(D) REFUSE COLLECTION AND DISPOSAL RATE A targeted rate for refuse collection and disposal, set under Section 16 of the Local Government (Rating) Act 2002 as a fixed amount on a uniform basis, applied to each separately used or inhabited part of a rating unit, for which a weekly rubbish collection service is available, with the rate being 2 or 3 times the base rate for those units where 2 or 3 collections per week respectively is available. The rate to apply as follows:
A nil rate will apply for land included in 3.3.7 and 3.3.8.
(E) KERBSIDE RECYCLING RATE A targeted rate for Kerbside Recycling, set under Section 16 of the Local Government (Rating) Act 2002 as a fixed amount on a uniform basis, applied to each separately used or inhabited part of a rating unit for which the Kerbside recycling collection service is available, such rate to apply as follows:
(F) SEWERAGE RATE A targeted rate for sewerage treatment and disposal, set under Section 16 of the Local Government (Rating) Act 2002 as a fixed amount on a uniform basis, applied to each separately used or inhabited part of a rating unit connected to the City Sewerage system (including the Bay View Sewerage Scheme), such rate to apply as follows:
A nil rate will apply for land included in 3.3.7 and 3.3.8.
The following rate will apply for each rating unit (excluding Bay View properties) not connected to the City Sewerage system but located within 30 metres of the system.
A nil rate will apply for land included in 3.3.7 and 3.3.8.
The following rate will apply for each rating unit located within the Bay View Stage 1 urban drainage area not connected to the sewerage system but located within 30 metres of the system.
(G) BAY VIEW SEWERAGE CONNECTION RATE A targeted rate for Bay View Sewerage Connection, set under Section 16 of the Local Government (Rating) Act 2002 as a fixed amount on a uniform basis, applied to each separately used or inhabited part of a rating unit connected to the Bay View Sewerage Scheme, where the lump sum payment option was not elected, such rate to apply to the Differential Groups as follows:
(H) OFF STREET CARPARKING RATE A targeted rate to provide funding for additional off street carparking in the Central Business District, Taradale and Suburban Shopping and commercial areas and to maintain existing offstreet parking areas in suburban shopping and commercial areas, set under Section 16 of the Local Government (Rating) Act 2002 on a differential basis and on the rateable land value, to apply to rating units in the Central Business District, Taradale Suburban commercial area, and other suburban shopping centres and commercial properties located in residential areas which are serviced by Council supplied offstreet parking, such rate to apply to the Differential Groups and Differential Codes as follows:
(I) CBD PROMOTION RATE A targeted rate to fund at least 70% of the cost of the promotional activities run by the Napier City Business Inc, set under Section 16 of the Local Government (Rating) Act 2002, and applied uniformly on the rateable land value of all rating units in the area defined as the Central Business District, such rate to apply to applicable properties within the Differential Groups and Differential Codes as follows:
(J) TARADALE PROMOTION RATE A targeted rate to fund the cost of the Taradale Marketing Association’s promotional activities, set under Section 16 of the Local Government (Rating) Act 2002 and applied uniformly on the rateable land value of all rating units in the Taradale Suburban Commercial area, such rate to apply to the Differential Groups and Differential Codes as follows:
(K) SWIMMING POOL SAFETY RATE A targeted rate to fund the cost of pool inspections and related costs, set under Section 16 of the Local Government (Rating) Act 2002, as a fixed amount on every rating unit where a swimming pool or small heated pool (within the meaning of the Building (Pools) Amendment Act 2016) is located, of $50 per rating unit.
DIFFERENTIAL CATEGORIES For each of the rates outlined in A to J above, the description of the Differential Groups applying is: 1. City Residential Properties 2. Commercial and Industrial Properties 3. Miscellaneous Properties (e.g. schools and kindergartens, churches, non-profit organisations, halls, private hospitals, etc) (Council properties (other than leased) are included in 3.3.7 and 3.3.8) 4. Ex-City Rural Areas (i.e. part of Napier City prior to 1.11.89) 5. Other Rural Areas 6. Bay View Differential Rating Area
Full description of the differential groups and differential codes is contained in the 2018-28 Long Term Plan. For the purpose of calculating the General Rate, the differential factor applying for each category is:
DUE DATES FOR PAYMENT OF RATES Instalment Rating That rates other than water by meter charges are due and payable in four equal instalments as follows:
Instalment 1 due 22 August 2018 Instalment 2 due 21 November 2018 Instalment 3 due 20 February 2019 Instalment 4 due 22 May 2019 Water by Meter Charges That water by meter charges are due for payment by the 20th of the month after the month of invoice as follows:
Metered Domestic Supplies - Invoiced annually - June 2019, due 20 July 2019
Non-Domestic Supplies - Invoiced quarterly - September 2018, due 20 October 2018 - December 2018, due 20 January 2019 - March 2019, due 20 April 2019 - June 2019, due 20 July 2019
PENALTIES That pursuant to Sections 57 and 58 of the Local Government (Rating) Act 2002 a penalty of 10 per cent is added to each instalment or part thereof which is unpaid 2 full working days after the due date for payment. Previous years rates which remain unpaid will have a further 10 per cent added 2 full working days after the due date for instalments one and three.
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That the Council resolve that the officer’s recommendation be adopted. |
1.2 Background Summary
On 29 June 2018 Council adopted the Long Term Plan for 2018 - 2028, which sets out Council’s rating system to apply from 1 July 2018 and determines the level of rates revenue required for the 2018/19 year.
The plan provides for an overall increase in rates revenue of 5.5% for 2018/19. However with the recent revaluation of the city being effective for rating from 1 July 2018, Council should note that individual rate increases will vary from this level depending on:
· the impact of the revaluation and
· the effect of changes made to Council’s general rate differentials which are used for allocating general rate funded costs between residential and non residential properties.
The impact on existing ratepayers is an average increase of 5.2% after allowing for growth in the rating base for 2018/19.
Under Section 23 of the Local Government (Rating) Act 2002, Council is required to pass a formal resolution to set rates in accordance with its adopted Plan for the 2018/19 financial year.
1.3 Issues
No Issues
1.4 Significance and Engagement
Consultation was carried out in conjunction with the Long Term Plan 2018-28, from April 14th 2018 to 14th May 2018.