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.