Council Rates Determination 2019/20

For 2019/2020 Council has determined that the total revenue to be raised from General Rates will be $18.45m as per the Long Term Financial Plan. 

To achieve this, Council decided that Primary Production would bear approximately 34.4% ($6.35m) of the total General Rates income. This represents a shift in the rates share borne by this group of ratepayers, of approximately 1% of total General Rates compared to 2018/19. 

The remaining categories, Residential, Commercial, Industrial, Vacant Land and Other, will provide the remaining 65.6% ($12.10m) of the $18.45m total General Rates.

The fixed charge portion of General Rates will remain the same as 2018/2019 at $410 with the remainder calculated in line with valuations within each category. Using the Valuations provided by the Valuer General for each category Council is able to determine a “rate in the dollar” applicable to each category that will achieve the amounts required in each category.

In the Residential land use category, valuations have risen by $84m (3.7%) in the past year which is similar to the rate increase required (3.5%) so Council has been able to keep the “rate in the dollar” for 2019/2020 almost the same as 2018/2019 for this category.

In the same period, Primary Production values have increased by $530m, an average of 16.6%, across the district, which is far greater than the 3.5% rate increase required for this category. Council has therefore reduced the “rate in the dollar” for this category to achieve only the amount of rates equivalent to 34.4% ($6.35m) of the total General Rate income required to fund the 2019/20 budget.

The rates in the dollar and General Rates raised for 2019/2020 and 2018/2019 are compared below:

Land Use Category

2019/20

Total Rate Increase Compared to 2018/19 Rate in $ Rates Raised % of Total Rates Residential 0.0027853 $10.23m 55.5% 2.8% ($278k) Primary Production 0.0015855 $6.35m 34.4% 6.6% ($394k) Other 0.0027853 $1.87m 10.1% -1.7% (-$32k) TOTAL   $18.45m 100% 3.59% ($640k) Land Use Category

2018/19

Rate in $

Rates Raised

% of Total Rates Residential 0.002780 $9.96m 55.9% Primary Production 0.001729 $5.95m 33.4% Other 0.002780 $1.90m 10.7% TOTAL   $17.81m

100%