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Change to Kapiti Coast rating system proposed

15 December 2005

Change to Kapiti Coast rating system proposed

After considering more than 1650 submissions on the review of the rating system, the Finance & Audit Committee of the Kapiti Coast District Council today approved a move away from pure land value rating to a system combining aspects of land value and capital value.

Finance & Audit Committee chair Barry Mansell said the decision maintained land value rating for all existing land value rated activities but moved stormwater from a fixed charge to a rate based on capital value.

“Of the 1655 submissions, roughly two-thirds were in favour of the status quo but there was a desire for change to full capital value rating from the other third. They clearly represent the views of people who are disadvantaged by the current land value-only system.

“There is some support for reducing the level of fixed charges. Moving the stormwater from a fixed charge to one based on capital value achieves that to a small degree. That change will bring the level of fixed charges to below 30 per cent. “The change proposed to the basis of stormwater rating reflects the fairness and equity we aimed to achieve with the process.

“It will provide some rating relief to people on lower value properties who are currently paying the same rates for stormwater through fixed charges as those on high valued properties,” Mr Mansell said.

The approach that the Finance & Audit Committee approved today will now be included in the draft Long Term Council Community Plan for consultation early in 2006.

ENDS

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