Rating roll growth below forecast for QLDC

For the first time in more than a decade the rating roll growth in the Queenstown Lakes
District Council has dipped below forecast, QLDC deputy chief executive and general
manager finance Stewart Burns said.

“The actual growth in the rating roll was 1.8%, which is slightly less than the forecast 3.2%
and has had a minor impact on the final setting of the rates for the 2010/11 year,” Mr Burns
said.

The rates cannot be formally set until the final capital values for the district are known as of
1 July 2010. “We then undertake a large arithmetic exercise based on the capital values and
the number of rateable properties. This has resulted in an average increase slightly above
forecast.’ Mr. Burns said.

The increase of 9.1% is 0.6% higher than the increase signalled in the 10-Year-Plan and just
over 1% higher than the increase consulted on through the Draft Annual Plan, which flagged
that the figure was “subject to growth”.

The effect on individual properties would vary according to a number of factors including
location, services received, valuation and property usage. Most residential property shows
an increase of around 0.5 to 1.2% more than the position shown in the Draft Annual
Plan; in dollar terms this is a difference in the range of $2.83 to $21.11 p.a. (excl GST).

“Clearly we are seeing some continuing fallout from the recession, we will be closely
monitoring our growth forecasts for next year,’ Mr Burns said.

The Council will be asked to set the rates at its meeting on Tuesday (17 August).