Hawke’s Bay Regional Council puts confusion over the cited ‘increase’ in the new Economic and Tourism Development rate for Hastings and Napier ratepayers down to a misunderstanding of how the rate is calculated.
In its draft Annual Plan for 2010/11 Hawke’s Bay Regional Council has set a new basis for calculating the fair division of the Economic and Tourism Development rate between all territorial districts in the region (reference pt3 p 25).
The revised rating scheme has been proposed to settle inequities in the rating after Hawke’s Bay Regional Council added Venture Hawke’s Bay as a business unit. Before that, Hastings and Napier councils paid $400,000 each using different rating systems, while Hawke’s Bay Regional Council rated another $400,000 across the whole region – including Hastings and Napier.
A report by a Hawke’s Bay economic consultant was provided to the Mayoral Forum last year, where the revised rating was proposed and agreed to as a fairer method.
The new rating is based on the number of ratepayers/population so that each district pays a fair share. Commercial/industrial ratepayers will contribute 30% based on capital value, and residents and rural properties 70% based on a uniform annual charge of $15.65 for each rateable property.
‘The total rates proposed for funding Venture Hawke’s Bay remains the same as last year – at $1,350,000 (incl gst). What has changed is the rating allocation, making a much fairer distribution of the cost across the region,’ said Chairman Alan Dick.
The proposed rating rebalance was included in the Council’s draft annual plan and summarised in the Council’s newspaper ‘The Big Picture’ which was distributed free to homes in mid-April.
From 1 July 2010 it is proposed that Hastings District ratepayers will pay less of the total economic and tourism development rates - only 46.15% compared to 48.5% of the total last year. The new rate will see them paying $623,085 which is $31,003 less overall than they were previously rated through both the Hastings District and Hawke’s Bay Regional Councils’ rates. Last year Hastings ratepayers paid a total of $654,088 through the two ratings.
Napier city ratepayers will also pay less. Last year they paid $598, 289 which was 44.3% of the funding across both ratings – from 1 July it is proposed they will pay 41.13% ($555,251 in 2010/11 or $43,038 less).
To balance the rate, Central Hawke’s Bay and Wairoa ratepayers are contributing more. Last year CHB contributed $59,379 or 4.4%, and from this year will be paying 7.69% of the rate ($103,788 in 2010/11). Wairoa was contributing 2.7% ($36,508) and will now contribute 5% ($67,500).
The small parts of the Taupo and Rangitikei districts that fall within the Regional Council boundaries will pay less – 0.03% combined ($376) down from 1% ($1736 in 2009/10).
Submissions on the Regional Council’s draft Annual Plan closed on 10 May and will be considered at a public Council meeting on 9 and 10 June. |