Annual Plan 2022-23 Rates Update
Council has taken the community's LTP feedback on board and wants to continue to do what we promised. In our LTP we forecast the total rates increase for 2022-23 to be 4.04%.
What is the actual rates increase for 2022-23 looking like?
At this stage we believe the final total increase will be between 4.3% and 4.9%, despite some inflation indices being up by 7 to 10%.
The Annual Plan will be finalised in June.
Do the recent property revaluations mean rates go up? No....But!
- The independent valuations are used to divide up the overall rates budget - not to increase it (like dividing up "the pie").
- If everyone's properties went up by the same percentage individual rates would not change.
- The revaluations are very variable, as you can see from the Kaikōura examples in the table below. These dramatic changes are New Zealand wide and are the most variable we have seen for a long time.
The result will be some people's rates (share of the pie) will go up more than forecast, while others will go down even though their property values have increased.
Yes it can be confusing!
So in the final Annual Plan expect a wide variation despite the overall average. Some rates will rise more than the average - and some will actually decrease. While we will do our best to mitigate this - the property revaluations are beyond our control.
For answers to more of your questions on this topic see the FAQ's on the Rates webpage here, including examples of the effect of the valuation increases on a range of sample properties.
Click on table to see enlarged view