Rates 2020/21

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Ngā reiti 2020/21

We set our rates based on community needs, the demand for Council services, level of service delivery required and the overall rates affordability.

This year we are considering two options for a rates increase. The preferred option is an increase after growth of 5.1%. This is below the 7.1% forecast in the 2018-28 Long-term Plan and the proposed 9.2% rates increase signaled earlier this year.

Our preferred rates increase option is outlined below. You can more information about all of the rates increase options here.

Rates Option A – 5.1% increase (preferred option)

Our preferred option maintains current service levels, while also including extra debt funding of $48m. This is equivalent to an extra 15% of potential rates transferred to debt. It still includes Council making organisational savings and carrying extra financial risk. This is made up of:

  • the one-off impact of $24m lost fees and charges revenue in 2020/21
  • $14m expected revenue loss from the Wellington Airport dividend
  • $10m of funding adjustments to spread costs over the period of benefit

It is considered the most financially prudent and transparent of the two options. Option A is Council’s preferred option.

The other option - Option B - is for a 2.3% rates increase and includes $11m more borrowing.It is not Council's preferred option because it puts too much pressure on future ratepayers to repay the debt and accumulated interest.

Proposed 2020/21 Annual Plan rates options comparedOption AOption B

Rates increase 2020/21

5.1%

2.3%

Rates increase in 2021/22

10%

14%

No increase in fees in 2020/21

No reduction in service levels

Debt funds revenue shortfall, reducing the impact on ratepayers in 2020/21

Additional debt funding is ‘one-off’ so minimal impact on future years

X

Likely to meet financial prudence test

X

Meets balanced budget requirement

X

X

Recommended

X


To find your property and rates information visit our property search.


Ngā reiti 2020/21

We set our rates based on community needs, the demand for Council services, level of service delivery required and the overall rates affordability.

This year we are considering two options for a rates increase. The preferred option is an increase after growth of 5.1%. This is below the 7.1% forecast in the 2018-28 Long-term Plan and the proposed 9.2% rates increase signaled earlier this year.

Our preferred rates increase option is outlined below. You can more information about all of the rates increase options here.

Rates Option A – 5.1% increase (preferred option)

Our preferred option maintains current service levels, while also including extra debt funding of $48m. This is equivalent to an extra 15% of potential rates transferred to debt. It still includes Council making organisational savings and carrying extra financial risk. This is made up of:

  • the one-off impact of $24m lost fees and charges revenue in 2020/21
  • $14m expected revenue loss from the Wellington Airport dividend
  • $10m of funding adjustments to spread costs over the period of benefit

It is considered the most financially prudent and transparent of the two options. Option A is Council’s preferred option.

The other option - Option B - is for a 2.3% rates increase and includes $11m more borrowing.It is not Council's preferred option because it puts too much pressure on future ratepayers to repay the debt and accumulated interest.

Proposed 2020/21 Annual Plan rates options comparedOption AOption B

Rates increase 2020/21

5.1%

2.3%

Rates increase in 2021/22

10%

14%

No increase in fees in 2020/21

No reduction in service levels

Debt funds revenue shortfall, reducing the impact on ratepayers in 2020/21

Additional debt funding is ‘one-off’ so minimal impact on future years

X

Likely to meet financial prudence test

X

Meets balanced budget requirement

X

X

Recommended

X


To find your property and rates information visit our property search.


Do you have any questions on this year's proposed rates options?  Ask them below and one of the team will be back in touch as soon as possible. 

We also have FAQs here in the meantime.

Your questions on rates

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  • Share on Facebook Share on Twitter Share on Linkedin Email this link

    Hello, How can you justify such a rates increase when individuals are losing their jobs, facing reduced hours, and facing increased uncertainty over this time? With the pension being tied to average income and this invariably falling due to redundancies/ loss of hours you're also likely to find that your older age population now cannot afford such a rates increase.

    T asked about 2 months ago

    Kia ora T. 

    Thank you for the question. This is the type of feedback we would like to hear from our residents. The rates options are proposals so I invite you to make a submission through the form. 

    We also have more information about payment options for those in financial hardship here: https://wellington.govt.nz/services/rates-and-property/rates 
    This includes information about deferring the 4th quarter rates installment for the current 2019/20 year and changes we have made because of Covid-19.

  • Share on Facebook Share on Twitter Share on Linkedin Email this link

    Following up on Mick's question ("Can you please confirm if this proposed rates increase is across both Residential and Commercial rates?") - where can we find the proposed rate increases for Residential?

    AntonyFoster asked about 2 months ago

    Hi Mick, 

    We can't yet provide the indicative rates increase for each household. That modelling is being done and will be available in the final plan. I will update this page when that is available.
    This page on the main WCC website has more information about how they are calculated.
    https://wellington.govt.nz/services/rates-and-property/rates/rates-explained/how-rates-are-calculated 

  • Share on Facebook Share on Twitter Share on Linkedin Email this link

    Hi there, Can you please confirm if this proposed rates increase is across both Residential and Commercial rates?

    Mick asked 2 months ago

    Thank you for your question. The proposed rates options of 5.1% or 2.3% are an average across all of our ratepayers. This is both commercial and residential.