Why did the Council decide on an 11.9% general rate revenue increase for the 2024/25 financial year?
The Council faced significant challenges with rising operational and capital costs while planning projects, activities, and services for the upcoming year. Both councillors and staff worked diligently to ensure quality service delivery, sustainable district development, and affordability were maintained. By postponing some non-urgent projects and finding additional savings, the Council managed to reduce the originally proposed general rate increase from 13.75% to 11.9%.
How did the Council address community concerns about the general rate revenue increase?
The Council considered the 227 submissions received through public consultation, where the majority expressed concern over the proposed general rate increase. In response, they reviewed budgets thoroughly, making efforts to find additional savings. This included removing, delaying, or rescheduling some projects to lower the impact on Waikato property owners.
What are the next steps for the Waikato District Council regarding future planning?
Earlier this year, the Council accepted a one-off government offer to pause work on the 2024-2034 Long Term Plan (LTP) and focus on an Enhanced 2024/25 Annual Plan. Now, the Council will resume work on the 2025-2034 LTP, with affordability challenges remaining a top priority. They will also be working to gain more certainty around non-ratepayer funding streams, including central government transportation subsidies and the new Water’s Done Well policy.
Couldn’t the general rate increase have been lower?
The simple truth is that if we do not keep up with rising costs then we will be increasing our debt and putting ourselves in a tricky situation for the future. This rate rise allows us to maintain our position and continue to deliver the important services that our residents need and expect.
How is the general rate for properties calculated and how is the 2024/25 general rate of 11.9% affect my property rates?
The general rate is made up of two parts; one is variable and is linked to the value of your property, and one is a fixed charge that is the same amount for every property. The fixed charge is called the Uniform Annual General Charge (UAGC).
The UAGC will increase by 13.75% per cent for every property (rateable unit). This will be $526.15 for 2024/25, up from $462.55 in 2023/24.
But the dollar amount of the capital value component increase, which increases by 11.9 per cent, will depend on your property value, and if the value of your property has changed in the past year.
All properties have been revalued as at 1 October 2023 and if your property increased by more than the average increase in property values across the district, the increase in the capital component charge will be higher than 11.9 percent. Similarly, if your property increased by less than the average increase in property values across the district, the increase in the capital component charge will be less than 11.9 percent.
In addition to this, if you owned a bare piece of land last year when we struck rates and now you've built a house, your increase will be well above 11.9 per cent as your property value would have increased by the value of the house. The same rule applies if you've done an extension or other improvements.
How can I check what the general rates increase means for me?
You can check the impact of the general rate increase for your property by going to our Rates Information Database here. Simply type in your address and look at the property charges 2024/25 section.
What about targeted rates?
Targeted rates are a user-pays rate, which covers services (such as water, wastewater, stormwater management, rubbish and recycling collections), and these are charged according to the location of your property and the services available. These will increase in 2024/25 at a rate similar with what was signalled in Year 4 of the 2021-2031 Long Term Plan.
You can check the targeted rate for your property by going to our Rates Information Database here. Simply type in your address and look at the property charges 2024/25 section.
What can I do to get financial support to pay my rates?
Find out if you’re eligible for our Rates Rebates here.
If you’re experiencing financial hardship, payment plans can be arranged here.
You can also read Council’s Postponement Policy – Financial Hardship on rates, which is available on our website here.
The Work and Income ‘Help with Living Expenses’ webpage may also help.
When will the 2024/25 Annual Plan be available to read?
The 2024/25 Annual Plan was formally adopted by Council on 26 June 2024 and can be viewed here.