Media Release:
Tuesday 17 March 2015

Feedback sought on rating system and development contributions

The rating system and development contributions are the two key issues in the Draft Long Term Plan 2015 - 2025 that Horowhenua District Council wants public feedback on.

Council is recommending changing from a Land Value-based rating system to one based on Capital Value with two differentials used - a district-wide "Business" differential including farms and utilities, and a district-wide "Other" differential including residential, lifestyle and not-for-profit organisations.

Chief Executive David Clapperton says that Council must seek a "best fit" for categories of property. Capital Value addresses current concerns such as affordability issues due to the large number of low-income households especially in urban areas. It also addresses desires for fairer and more equitable rates, to treat all businesses the same, and to take out urban stormwater from the Roading Rate and rate it over urban properties instead.

"Capital Value provides a better alignment with incomes and ability to pay. This is because generally low-income households are less likely to afford higher valued properties - those with a greater capital investment. It also addresses the issue of higher rates on vacant sections," he said.

As well as the status quo (retaining the Land Value-based rating system), a combination of both Land Value and Capital Value is the third option being considered.

None of the rating systems will change the overall amount of rates collected by Council each year - it just changes how rates are divided amongst property owners.

The other key issue is Development Contributions, which are currently charged to developers to help fund infrastructure, reserves or other community facility costs arising from additional demand on resources and services created by new housing, or commercial developments.

Mr Clapperton says that one of Council’s key drivers for proposing this change was that the District’s infrastructure can cope with the expected growth over the next ten years.

“However, we have identified a number of areas where we would charge Financial Contributions if the decision is made to cancel Development Contributions. These are areas of 100 percent growth, where there is currently no infrastructure," Mr Clapperton said.

“One of the main drivers of this proposal is to ensure that ratepayers are not subsidising development costs, but that we are equally not charging unjustified costs to those wanting to build new homes in our District."

Council has also identified a number of other ‘hot topics’ on which public submissions are sought.

These include whether rain water tanks be made compulsory for new homes, whether paid-parking be installed in the Levin Mall car park, whether Horowhenua should have a Smokefree Environment Policy, changes to Council's planning fees and charges, and also new swimming school fees and charges.

Further information on all issues and topics, as well as a submission form, can be found in the Draft LTP 2015-2025 Consultation Document, available online atwww.horowhenua.govt.nz/ltp. Hard copies are available at Council's office in Levin, Te Takere, the Foxton and Shannon Libraries, Tokomaru Store, Waitarere Beach Four Square and the Manakau Store.

Submissions on the Draft LTP close at 5.00pm on Friday 3 April 2015.

Submitters who wish to speak to their submission will have the opportunity to be heard on 5, 6 or 7 May 2015. Deliberation on all submissions will then take place on 26,27 and 28 May 2015. The final LTP needs to be adopted by Council before 30 June 2015.

ENDS

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