2018 - 2019 Rating Charges

Contents

Rates funding Impact Statement

Rates for 2018 - 2019

All figures stated do not include GST.
Amounts to be collected are stated prior to remissions.
To be read in conjunction with the Revenue and Financing policy.  

General Rates

General rate on capital value

Council sets a general rate on capital value on a differential basis, assessed on all rateable land in the district.  The general rate funds that part of the general revenues of Council that is not funded by the uniform annual general charge.

The relationship between the differential categories for the general rate and the indicative rate per dollar of capital value is:

Differential categoriesRelative differentialsRate per $ of capital value
  2018/19
1. General Rate – Base1.00.002353
2. General Rate – Business1.720.004048

The amount to be collected for 2018/19 is $42,694,000.

Definition of differential categories for the general rate on capital value

Base: Every property not otherwise categorised.
Business: Every property which is:

  • used for any business or industrial purpose.
  • vacant land which is not zoned residential or rural.

This category includes utilities but does not include Rotorua Lakes Council utilities or residential investment properties, regardless of the number of units, provided they are let for long term tenancies.

Uniform annual general charge

Council sets a uniform annual general charge as a fixed amount of $500.00 per rateable rating unit.

The UAGC is for the purposes of, but not necessarily limited to, funding the following types of activities: 

  • Arts and Culture
  • Community Leadership
  • District Development
  • Roads and Footpaths
  • Sport, Recreation and Environment
  • Storm Water and Land Drainage

The UAGC is set at a level that is determined by Council each year, subject to the maximum allowed under Section 21 of the Local Government (Rating) Act 2002.

The amount to be collected for 2018/19 is $14,029,000.

Targeted rate for lakes enhancement

Council sets a targeted rate for lakes enhancement as a fixed amount of $17.58 per rating unit, on all rateable land in the district excluding rating units within the Waikato region.

The rate is to contribute to lakes enhancement by way of improving water quality.

The amount to be collected for 2018/19 is $470,000

Targeted rates for business and economic development

Council sets 2 targeted rates to fund business and economic development on all rating units in the specified categories including vacant land that is in one of the three differential categories below because the underlying district plan zoning or district valuation roll category for the land indicates the differential categories apply (except Kaingaroa Village rating unit 07010 514 01A and Rotorua Lakes Council utilities), contributing to the cost of:

  • Economic Projects
  • Destination Rotorua Marketing
  • Tourism Rotorua Travel and Information Centre

The relationship between the three differential categories for the purposes of setting these targeted rates in terms of the total revenue to be gathered has been set as follows:


Revenue gathering split for the Business and 
Economic Development targeted rates
1.             Business80%
2              Industrial10%
3.             Farming10%
Total revenue to be generated100%

The amount to be collected for 2018/19 is $6,006,000

a. Council will set a targeted rate as a fixed amount per rateable rating unit, on a differential basis as set out in the table below:

Differential categoriesRelative differentialsRate per rating unit
Business Urban and Rural100189.39
Industrial100189.39
Farming2547.35

Where part of a rating unit is secondary to the principal use and is for the business of providing short-term accommodation the rate will be charged on the basis of 100% of the targeted rate where 1 or more bedrooms are used for providing short-term accommodation.

b. In addition, Council will set a targeted rate in the dollar on capital value set on a differential basis for the following categories of properties, as follows:

Differential categoriesRevenue to be collected $Rate per $ of capital value
Business Urban and Rural4,574,0000.002747
Industrial481,0000.000812
Farming525,0000.000151

The differentiated targeted rate in the dollar on capital value will be set on every rating unit where either:

  1. the principal use of that rating unit falls into one of the three categories described below, or
  2. part of the rating unit has a significant secondary use that falls into one of the categories described except where that use is the business of providing short-term accommodation. 

This rate will apply only to the part of the rating unit allocated to the appropriate category.

Definition of differential categories for the business and economic development targeted rates

Business, Urban and Rural: Every property in the urban or rural sector and is used for any business purpose except industrial. This category includes utilities and their networks.

Industrial: Every property that has been categorised in the District Valuation Roll as being used for industrial purposes in accordance with the Rating Valuation Rules 2008.

Farming: Every property which is used for farming purposes

Notes: "Providing short-term accommodation" for the purposes of this rate includes the provision of accommodation such as a B&B, lodge, retreat, farm stay or homestay or the provision of other similar short-term accommodation."

Targeted rate for refuse collection and waste management services – rateable properties

Council sets a targeted rate for refuse collection and waste management services on all rating units in the district that are located within the Rotorua urban rating boundary (as shown on map V ) and that are located in the rural areas identified on map W and map X and that are not used as council reserves.  The rate is differentiated based on the location of the rating unit, the use to which the rating unit is put, and the provision or availability of the service to the rating unit. The rate is set as either an amount per separately used or inhabited part (SUIP) of a rating unit that receive the service, and is set as an amount per rating unit for rating units that are "Serviceable".  

The targeted rate funds refuse collection service which includes recycling. The targeted rate also funds waste management services, which include litter bin provision and the management of as well as the removal of illegal littering and waste dumping on council controlled land, conducting of waste minimisation information and education programmes as well as other associated costs to Council in providing the service.

Serviced (CBD business SUIP) rating units

For commercial rating units in the CBD area identified in the map, the Council will provide [a 240L MGB for refuse and 240L MRB for recycling collection and 40L crates for glass collection]. The Council will collect refuse weekly and recycling fortnightly from the kerbside.

The relationship between the differential categories for the waste collection rates and the amount of the rate for the 2018/19 year is as follows:

Waste CollectionRelative differentials (%)2018/19 rate ($)
The total amount to be collected in 2018/19 is $5,451,000
Serviced100172.75 per SUIP
Serviced (CBD business SUIP)200345.50 per SUIP
Serviced (Rural)100172.75 per SUIP
Serviced (Rural – part year)83143.38 per SUIP
Serviceable5086.38 per rating unit

Description of differential categories for the refuse collection and waste management services rates – rateable properties

Serviced:  All rating units, except those that fall under the "Serviced (CBD business SUIP)" category, the Serviced (Rural) category, the Serviced (Rural – part year) or the "Serviceable" category . This category does include rating units used for residential purposes within the CBD area identified in the map Z.

Serviced (CBD business SUIP): All rating units used for commercial purposes within the CBD area identified in the map Z.

Serviced (Rural):  All rating units identified on Map W.

Serviced (Rural – part year):  All rating units identified on Map X.  The targeted rate for this is category is set at a lower amount than that for the Serviced (Rural) category because it is intended that Council will commence the service to these rating units in the 2018/2019 year.

Serviceable: All rating units shown in map V (Rotorua urban rating boundary) where the service is available to a rating unit, but is not used. This includes any rating units that are vacant (including bare land). It does not allow for voluntary opting out of receiving the service.

Notes:  Council reserve tenants will have the option of entering a private contract with Council's contractor if they wish to use the collection service

Targeted rate for refuse collection – non-rateable properties

Council sets a targeted rate for refuse collection only on those non-rateable rating units identified in table A . The rate is set as a fixed amount of $86.38 per rating unit.

Targeted rates for water supply

Council sets targeted rates for water supply to properties within the service areas shown on the rating maps in this funding impact statement based on the location of the rating unit and the provision or availability to the land of a water supply. The amount to be collected is $9,804,000

The targeted rates for water supply are as follows:

Water supply
(except Kaharoa and Reporoa) 

(Service areas shown on Map A, Map B, Map C , Map D , Map E, Map F)

Relative differentials (%)Factor of liability2018/19 Rate $
The amount to be collected is Metered water $3,890,000; General water rate $4,981,000 ​ ​
A differential targeted rate of: 

A fixed amount on each separately used or inhabited part of a rating unit connected (and not metered)100Per SUIP247.40
A fixed amount on each serviceable rating unit capable of connection.50Per rating unit123.70
A fixed amount on each connection to a rating unit (and metered)100Per connection247.40
A targeted rate on each metered connection to a rating unit of a fixed amount per cubic metre supplied in excess of 56 cubic metres per quarter. Per cubic metre1.0999
Kaharoa
(Service areas shown on Map G)
    
The amount to be collected is $272,000
A targeted rate of a fixed amount per connection to a rating unit. Per connection300.62
A targeted rate on each metered connection to a rating unit of a fixed amount per cubic metre supplied to the rating unit. Per cubic metre0.3874
Reporoa
(Service areas shown on Map H)
Relative differentials (%)Factor of liability2018/19 Rate $
The amount to be collected is $661,000​​​
A differential targeted rate:   
A fixed amount per connection on each Domestic/Non-Farming rating unit connected64Per connection176.20
A fixed amount per connection on each Farming/Dairy-Factory rating unit connected.100Per connection275.32
A differential targeted rate:    
A fixed amount on each metered connection to a Domestic/Non-Farming rating unit per cubic metre supplied in excess of the 82 cubic metres per quarter.100Per cubic metre0.5295
A fixed amount on each metered connection to a Farming/Dairy-Factory rating unit per cubic metre supplied in excess of 207 cubic metres per quarter.64Per cubic metre0.3389


Definition of differential categories for the water supply rates

Connected rating unit: is one to which water is supplied from a council water supply service.

Serviceable rating unit: is one to which water is not provided, but the whole, or some part of the rating unit is within 100 metres of a council water supply service and is within a water supply area and could be effectively connected to that water supply service.

For the Reporoa water supply:

Domestic/non-farming rating unit: means a rating unit where the water supply is not subject to water allocation and a corresponding restriction on a flow or time basis. This applies to rating units primarily for domestic, commercial or industrial use excluding the Reporoa Dairy Factory.

Farming/dairy factory rating unit: means a rating unit primarily for farming of livestock and also includes the Reporoa Dairy Factory. Such rating units are subject to a daily water allocation restricted on a flow or time basis.

Notes: Targeted rates for metered supply are invoiced quarterly by separate invoice. 

Leakage: In respect of all metered water supply, where leakage is detected, the amount of water supplied will be determined in accordance with Council's procedure relating to account reassessments.

Targeted rates for sewage disposal

Council sets targeted rates for sewage collection and disposal to properties within the service areas shown on  Map I, J, K, L, M, N, O, P, Q, R, S, T, and U on a differential basis, based on the provision or availability to the land of sewage disposal services, as follows:

Sewerage DisposalRelative differentials (%)Factor of liability2018/19 Rate $
The amount to be collected is $14,323,000
1.  Rating unit connected:    
Category 1 - means the rating units with 1 to 4 toilets (water closets or urinals)100Per WC/urinal413.92
Category 2 - means the rating units with 5 to 10 toilets (water closets or urinals)85Per WC/urinal351.83
Category 3 - means the rating units with 11 or more toilets (water closets or urinals)80Per WC/urinal331.13
2.   Serviceable    
- means the rating units which are serviceable rating units.50Per rating unit206.96

Definition of differential categories and other definitions for the sewage disposal rates

Connected rating unit: means a rating unit from which sewage is collected either directly or by private drain to a public sewerage system.

Serviceable rating unit:  means a rating unit from which sewage is not collected but the rating unit (or part) is within 30 metres of Council's sewerage system and could be effectively connected to the sewerage scheme.

WC/urinal: means: a) a water closet; or b) each 1.5 metres or part thereof of urinal; or c) from 1 to 4 wall mounted urinettes.

Category 1: means the rating units with 1 to 4 toilets.
Category 2: means the rating units with 5 to 10 toilets.
Category 3: means the rating units with 11 or more toilets.

Note: a rating unit used primarily as a residence for 1 household will be treated as having only 1 water closet or urinal

Targeted Rates for Urban Sewerage Development

Council sets targeted rate for urban sewerage development rate on all rateable land in the area shown on Map V as a fixed amount of $2.89 per rating unit.

The rate funds the cost of sewerage capital work in the Ngongotaha, Fairy Springs and Hinemoa Point areas.

The amount to be collected in 2018/19 is $63,000.

Targeted Rates for Capital Cost of Sewerage Schemes

Council sets separate targeted rates for the capital costs of the following sewerage schemes:

  • Okawa Bay
  • Mourea
  • Marama Point
  • Amora Lake Resort
  • Hinemoa Point
  • Brunswick
  • Brunswick stages 4 and 6
  • Rotokawa
  • Lake Okareka/Blue lake
  • Okere Falls/Otaramarae/Whangamarino
  • Paradise Valley
  • Hamurana/Awahou
  • Waikuta Marae

The rating units liable for this rate are those in the service areas as identified below.

 Factor of liability2 018/19 Rate $
Amora Lake Resort (Rating unit 06961 052 00)  
The amount to be collected is $12,250
A fixed amount per rating unit
Per rating unit12,250.34
Brunswick Stages 4 and 6 (Service areas shown on Map M)  
The amount to be collected is $9,659
A fixed amount on each household unit equivalent (HUE)
Per HUE292.74
Brunswick (Service areas shown on Map N)  
The amount to be collected is $54,254
A fixed amount on each household unit equivalent (HUE)
Per HUE609.49
Hamurana/Awahou (Service areas shown on Map O)  
The amount to be collected is $125,566
A fixed amount on each household unit equivalent (HUE)
Per HUE426.08
Hinemoa Point (Service areas shown on Map K)  
The amount to be collected is $24,515
A fixed amount on each household unit equivalent (HUE)
Per HUE495.25
Lake Okareka/Blue Lake (Service areas shown on Map P)  

The amount to be collected is $166,857

A fixed amount on each household unit equivalent (HUE)

Per HUE897.09
Marama Point (Service areas shown on Map Q)  
The amount to be collected is $14,691
A fixed amount on each household unit equivalent (HUE)
Per HUE233.20
Mourea (Service areas shown on Map J)  
The amount to be collected is $27,562
A fixed amount on each household unit equivalent (HUE)
Per HUE291.67
Okawa Bay (Service areas shown on Map L)  
The amount to be collected is $8,634
A fixed amount on each household unit equivalent (HUE)
Per HUE454.46
Okere Falls / Otaramarae / Whangamarino  (Service areas shown on Map R)  
The amount to be collected is $98,812
A fixed amount on each household unit equivalent (HUE)
Per HUE404.47
Continued…Factor of liability 2018/19 Rate $
Paradise Valley (Service areas shown on Map S)  
The amount to be collected is $4,886
A fixed amount on each household unit equivalent (HUE)
Per HUE375.85
Rotokawa (Service areas shown on Map T)  
The amount to be collected is $34,209
A fixed amount on each household unit equivalent (HUE)
Per HUE187.96
Waikuta Marae (Service areas shown on Map U)  
The amount to be collected is $2,136
A fixed amount on each household unit equivalent (HUE)
Per HUE356.14

These rates fund the capital cost of establishing the schemes over 25 years.

The targeted rates for the respective sewerage schemes are applied only to those properties that have not taken the opportunity to pay their contribution towards the capital costs as an informal single lump sum payment (where available).  Those ratepayers who have made or make an informal single lump sum payment will not be liable for the sewerage scheme capital cost targeted rate. Payments of informal single lump sum payments must be received by 15 June prior to 1 July of the first financial year that Council charges a targeted rate for capital costs for the respective sewerage scheme. The option for ratepayers to settle the residual amount of their share of the capital cost of their particular scheme will be available throughout the remaining term of the targeted rate i.e. anytime during the 25 years. This ability exists for all schemes and is provided through a specific remission policy included elsewhere in this plan.

For future developments or connections Council reserves the right to select the funding mechanism(s) that will be used.  This may include either of the options referred to above i.e. assessing a targeted rate over a 25 year term or inviting a capital payment before the service connection is completed.

Definitions for the sewerage rates

Nominated rating units: means properties which existed as rating units at the date of commissioning each scheme.

Household unit equivalent (HUE): means a household equivalent to enable industrial, commercial and multiple dwelling developments to be included in the calculations. It is used to convert industrial, commercial and multiple dwelling developments to a household equivalent equating to a single dwelling. Where used as the factor to determine a rating unit's liability for a rate, HUE corresponds to the extent of provision of the service to the rating unit as objectively measured by the floor area calculation noted below.

A minimum of one HUE will apply to all nominated rating units including those where no building exists i.e are vacant. Where multiple dwellings exists, each household unit additional to the primary dwelling will be assessed on the following basis:

Floor Area of Additional Household Unit% Charge/HUE
Less than 40m2No charge*
40m2 to less than 60m250% HUE
60m2 to less than 70m260% HUE
70m2 to less than 80m270% HUE
80m2 to less than 90m280% HUE
90m2 to less than 100m290% HUE
100m2 or greater100% HUE or 1 HUE

The first additional household unit of less than 40m2 will not attract a separate sewerage capital targeted rate or voluntary contribution charge. Any further household units of less than 40m2 will be assessed a sewerage capital targeted rate or voluntary contribution charge of 50% HUE.  All subsequent dwellings constructed after the completion of a sewerage scheme will be charged a capital contribution targeted rate or voluntary contribution towards the sewerage scheme calculated on the same basis.

Definition of separately used or inhabited part of a rating unit

Separately used or inhabited part (SUIP): A separately used or inhabited part of a rating unit includes any portion inhabited or used by (the owner/a person other than the owner), and who has the right to use or inhabit that portion by virtue of a tenancy, lease, licence, or other agreement. For the purposes of the targeted rate for refuse collection and waste management services – rateable properties for rural properties (outside the urban boundary shown on Map V), this definition is limited to those parts that are inhabited or could be inhabited as residential dwellings.

This definition includes separately used parts, whether or not actually occupied at any particular time, which are provided by the owner for rental (or other form of occupation) on an occasional or long term basis by someone other than the owner.

For the purpose of this definition, vacant land and vacant premises offered or intended for use or inhabitation by a person other than the owner and usually used as such are defined as "used".

For the avoidance of doubt, a rating unit that has a single use or occupation is treated as having one separately used or inhabited part.

Voluntary Lump Sum Capital Contributions

Council had set amounts for ratepayers who elected to pay one-off voluntary lump sum capital contributions for the capital cost of sewerage schemes.

Lump sum options for all current schemes have expired, however ratepayers may still choose to settle their outstanding contribution at any time.  Council offers a specific remission policy for this purpose.

Except as stated above, the Council will not accept lump sum contributions in respect of any targeted rate.

Rates Postponement

To cover costs, the following fees and charges are set for the 2018/19 rating year. All fees and charges for this will be added as either a one-off or annual charge as the case may be, to the approved applicants rate account.

Initial Charges 
- One-Off (plus GST at the prevailing rate)
Charging Unit2018/19
Application FeeOne-Off$88.89
Contribution to CounsellingOne-Off$250.00
Half Year Interest Charges
Interest calculated on councils marginal borrowing rate 6 monthly on all amounts outstanding
Annua l Charges
(plus GST at the prevailing rate)
Charging Unit2018/19
Annual Account FeeAnnual$44.44
Administration FeeAnnual1.0%
Reserve Fund FeeAnnual0.25%
Property Insurance *AnnualTBA
* Property Insurance: A ratepayer must submit a current insurance certificate annually.  
If the ratepayer cannot afford separate cover council will arrange cover, and the cost will be added to the balance of postponed rates.


Due dates for payment of rates

All rates excluding targeted rates for metered water supply will be payable in four instalments by the due dates, as follows:

InstalmentDue DatePenalty Date
Instalment Number 1Due by 20 August 2018 21 August 2018
Instalment Number 2Due by 20 November 201821 November 2018
Instalment Number 3Due by 20 February 201921 February 2019
Instalment Number 4Due by 20 May 201921 May 2019

Discount for prompt payment

A discount, at a rate set annually, is allowed to any ratepayer who pays the total rates, charges, and levies as specified on the rates assessment (excluding targeted rates for metered water supply charged quarterly), by the due date for the first instalment.  The discount for 2018/19 is  2.0  %.

Penalties on unpaid rates

Current overdue rates instalments:

  • A penalty will be added to any part of an instalment that remains unpaid after the due date for payment of the instalment on the penalty dates above. The penalty will be 10% of the unpaid instalment.

Arrears of rates (including past instalments):

  • A further penalty of 10% will be added on 6 July 2018 to rates assessed in any previous financial year and which remain unpaid on 30 June 2018.
  • A further penalty of 10% will be added on 8 January 2019 to rates assessed in any previous financial year, plus any previous further penalty, and which remain unpaid on 7 January 2019.

Note:  Penalties will not be applied to rating units approved by the Chief Financial Officer in cases where:

  • applying penalties would serve to be detrimental to the collection of all or part of the balance of the outstanding rates; or
  • applying penalties would only add to what is deemed to be an uncollectable debt; or
  • there is a Direct Debit authority to pay the full amount of rates owing by regular payments within the current rating year, and any default is promptly rectified.
  • Land is designated 'Maori Freehold land title'; and
    • Is under multiple ownership; and
    • Is unoccupied

Due dates for payment of targeted rates for metered water supply

Targeted rates for metered water supply will be read and invoiced quarterly.  The due date for payment for each of the quarters is as follows:

Billing cycle    Billing monthDue datePenalty Date
May – August
August   25 September 201826 September 2018
August - November  November  21 December 2018 29 December 2018
November – February  February  25 March 2019     27 March 2019
​​February – May   May25 June 201926 June 2019

Penalties on unpaid water invoices

A penalty will be added to any part of a current invoice that remains unpaid after its due date. The penalty will be 10% of any unpaid part of the invoice.

Rating Maps

Click here to view the map.

Table A: Refuse Collection - Serviced Non-Rateable Land

Click here to view the table.

Definitions

The term:

"Business purpose" means any purpose of commerce, trade, or industry; but does not include any farming purpose.

"Farming purpose" means used for agricultural, horticultural or pastoral or forestry purposes or the keeping of bees or poultry or other livestock.

"Property" means, either the part or the whole of any rating unit (as the case may be) used for a particular purpose. (Explanatory note: The intention is that where different parts of a property that constitute a rating unit are being used for different purposes, they may be rated differently).

"Residential purposes" means occupied or intended to be occupied for the residence of any household being a residential unit including holiday homes that may be let for short-term periods not exceeding 100 days per annum.  Kaingaroa Village on rating unit 07010 514 01A will be treated as entirely "residential" for all rates within this funding impact statement even though it comprises elements of other categories.

"Rural Sector" means the part of the Rotorua District which is not the Urban Sector.

"Urban Sector" means the area as shown on the map titled Rotorua Urban Rating Boundary and contained in the rating maps section of this funding impact statement (a larger copy is available at the Council Civic Centre). The boundary has been set to recognise the urban growth trends and where properties have similar access to services (but not necessarily the same). This boundary will be reviewed from time to time as necessary to accommodate changes to the above and follows rating unit boundaries rather than dissecting properties.

"Utilities" being all rating units situated within the Rotorua District that have been identified by the Valuer General as infrastructure utility networks.

 "Vacant Land" means land which is in an undeveloped state and is not being used or occupied for any purpose.

"Zoned" means zoned in accordance with the operative Rotorua District Plan.


To view the table, click the image above.

Page reviewed: 10 Jul 2018 1:50pm