CEO's Column - 16 April 2009

The draft Long Term Plan for 2009-2019 has progressed to the stage of being available for public consultation. Submissions are open to 24 April 2009.

I have been asked to provide a breakdown by group on the level of rates. All the figures given below are draft figures based on the draft plan.

The draft plan provides for rating income next year for the Council of $9,715,804 including GST.

This is made up of $5,886,539 for the general and roading rates, which is then divided among properties on the basis of their capital value; targeted rates of $2,087,364 for water, sewer and refuse; and $1,741,901 for the Uniform Annual General Charge (UAGC), which is divided as an equal amount to each property.

In total, the Midhirst community would contribute $145,683; Utilities $206,565; the Urban area, which includes residential and business $4,354,546; and the Rural area $5,009,009.

For the general and roading portion calculated on capital value, the rural community would pay $4,405,150 out of the total of $5,886,539, which is 74.8%.

The UAGC is split between the urban area at $1,072,122, which is 61.5%; $598,676 at 34.3% from rural, and the rest from Midhirst and Utilities.

For targeted rates, 97.7% are paid by the urban area as that is where the water, refuse and sewer services are provided.

There are 5,073 separate rated properties in the District, 2,768 in the urban area, 2,130 in rural, 163 in Midhirst and 12 utilities.

When the draft plan talks about possible projects and the impact on rates, the “who pays” that type of rate needs to be also considered.

For example, any work on water is paid by a targeted rate so the Urban, Midhirst and Toko properties who receive water will pay. Climate Change costs impact the refuse collection rate.

If one of the more expensive options on the swimming pool was built the costs would come from the general rate, so the majority of the extra rates would be paid by the rural sector.

The current farm income reduces the general rate, and the investment income generated after any possible farm sale would continue to reduce the general rate.