Nil increase in total rates take

Environment Canterbury Commissioners today moved one step closer to capping the regional council’s rates take at $74 million for the upcoming 2011/12 financial year. The final decision to adopt the Annual Plan, plus amendments to the Long Term Council Community Plan (LTCCP) and strike the rates takes place at the June meeting.

“When we commenced our preparations for this year’s 2011/12 Annual Plan late last year, commissioners agreed that in the current economic climate there should be no increase in the total sum of general and targeted rates collected on the 2010/11 total,” said Commissioner David Bedford.

The rates component of the revenue received by the regional council in 2010/11 is $74 million and this is likely to be largely unchanged for the coming year.

“The $74 million rates budget represents a reduction of almost 9% from the projected amount for 2011/12 included in the 10 year LTCCP. The impact on the rate bill individual ratepayers across Canterbury will receive will vary across the region depending upon the services delivered to each ratepayer community,” said Commissioner Bedford.

In most of the rural towns and communities there will still be increases to both general and targeted rates to support bovine TB control, biodiversity work and the Canterbury Water Management Strategy. In Halswell, a targeted rate to restore the flood-handling capacity of the Halswell River, which was affected by the September earthquake, and protect surrounding land, stock and buildings will see rates increase in that rating district. In the Waimakariri river rating district, similar earthquake costs will be funded from the river rating reserves built up by that district.

The other factor affecting rates is the capital revaluation of Christchurch after the February earthquake. This will reduce the total capital value of properties in Canterbury and as a result, alter the distribution of some rates across the region. Estimates put the loss of capital value in Christchurch at between $1.4 billion and $3.2 billion out of a total $79 billion for the city. However, there is considerable uncertainty around the extent of the decrease.

However, Commissioner Bedford said that the cessation of the Clean Heat Project in Christchurch meant that the effect upon these ratepayers would be marginal with an overall decrease in most regional rates in the city.

For a Christchurch City property with a capital value of $400,000, regional rates are currently $307. For 2011/12, taking into account the new rating base but dropping the Clean Heat targeted rate, rates would be down $14 to $293. A rural Selwyn property valued at $4.65 million this year pays $2,025 regional rates. This would increase by $149 to $2,174.

Prior to finalizing the Annual Plan, the commissioners considered submissions from 526 organisations and individuals. Of these, 24 people made submissions in person in Rangiora earlier this month and nine people spoke to their submissions in Timaru.

The large majority of submissions concerned the proposal seeking specific feedback on increasing work to combat Bovine Tb. Of 443 submissions on this topic, 420 directly supported the increased contribution in order to wipe out Bovine Tb and thus protect agriculture, wildlife and the economy. This work will go ahead as outlined in the draft annual plan, commissioners agreed.

The Council also responded positively to a number of submissions that will see Banks Peninsula’s Little River Rail Trail completed, support continued for possum control on Banks Peninsula and the Kaikoura Coastal Guardians (Te Korowai o Te Tai o Marokura) and a reduction in the Clean Heat targeted rate in Ashburton and Waimakariri districts.

Public feedback was also sought in three other areas apart from Bovine Tb – a proposal to end the Christchurch Clean Heat Project, ending activity in the Energy portfolio, and an increased targeted rate to cover an improved Metro bus service in Selwyn District.

The five submissions on the Christchurch Clean Heat Project supported ending it, two of the three submissions received on the energy work wanted the status quo maintained and of ten submissions from the Selwyn District on Metro rates, six disagreed with the proposed targeted rate noting their properties were more than 500 metres from a bus stop.

Commissioners agreed to end the Clean Heat Project in Christchurch as outlined in the draft. They also supported the end of the Energy portfolio activities and continuing with the Selwyn District Metro rate, reflecting the greater availability of public transport in the district with the expanded Selwyn Star, both outlined in the draft Annual Plan.

After almost eight years of assisting Christchurch homeowners to insulate and heat their homes more cleanly and efficiently, the Clean Heat Project in Christchurch will end on June 30. There are now a wide range of service providers that are now well-placed to build on that success, said Commissioner Bedford.

Close to 19,000 households have worked with Environment Canterbury in this time, installing insulation and clean heating. As a result, the number of high pollution nights in a typical Christchurch winter is a third of what it was and air pollution is down by more than 40% overall.

Commissioners today also agreed the funding for new tailor-made approaches to improving air quality in Timaru, Ashburton, Kaiapoi and Rangiora, which will include a revised Clean Heat Project and a reduction in targeted rates in Waimakariri and Ashburton districts.

From July 1, the Clean Heat Project will still feature in all four towns but will operate differently in each to take account of local opportunities and innovative ideas from businesses and the wider community.

“The Environment Canterbury commissioners are determined to ensure that rates collected from the Canterbury community are used efficiently and on areas of greatest resource management priority,” said Commissioner Bedford. “Leading into 2012, commissioners and staff will also be developing a new long term plan, which we are required to do every three years. This will take into account changes in local government legislation/ We will be aiming to limit rate increases in coming years while still progressing the most important issues confronting the Canterbury community.”