Proposed revenue increase held to 5.5 per cent for 2008-09

Environment Waikato has held its proposed increase in total rate revenue to just 5.5 per cent for 2008-09, with planned rate increases for a $350,000 house in the majority of local authority areas being just one to two per cent.

This compares to a projected 6.8 per cent rate revenue increase in the 2008-09 draft annual plan and 12.4 per cent in the Long-Term Council Community Plan 2006-16.

The reduction to a 5.5 per cent increase in total rates revenue – due for approval at a regional council meeting on 26 June – was achieved by making cost reductions across the board in council spending, said chairman Peter Buckley. “Councillors are pleased to be recommending a major reduction in the planned revenue increase following deliberations on submissions made on the plan. It’s very satisfying to us that we’ve been able to reduce the proposed rates burden on the community during difficult economic times, without compromising essential services provided by Environment Waikato.”

The total rate take is now set to be $62.106 million, compared to a projected $62.891 million in the draft annual plan. For a $350,000 home in most territorial authority areas, the rate increase is just one to two per cent. But various factors, including property revaluations and changes to some targeted rates, mean the range of increase (or decrease in some cases) is generally from minus one per cent to eight per cent.

In Hamilton City Council’s area, the average rate increase is four per cent or $13.50 for a $350,000 house paying passenger transport rate. For a Hamilton property not subject to passenger transport rate the average increase is one per cent or $2.40 for a $350,000 house.

Figures for other parts of the region are:
Area Change for $350,000 house
Franklin <1 per cent / $1
Waikato District 2 per cent / $4
Thames-Coromandel 5 per cent / $13
Hauraki 2 per cent / $7
Matamata-Piako 1 per cent / $2
Waipa -1 per cent / $(3)
Otorohanga 8 per cent / $20 (Otorohanga is particularly affected by property revaluations)
Waitomo -1 per cent / $(1)
Taupo 1 per cent / $2
South Waikato 2 per cent / $4
Rotorua 1 per cent / $2