CLOSED: Consultation has concluded. Please see key dates within the timeline for next steps.
The current picture
In our District, different types of properties contribute to road-related expenses at different rates, we call these differentials. This is because some users of our roads are more likely to put a greater strain and wear on the network – for example, transporting kiwifruit or large machinery. To reflect this, the differential currently applied to residential and rural zoned properties is 1.0, and for commercial/industrial and post-harvest zoned properties it is 2.0.
The changing landscape
However, due to the growing costs of maintaining our roads, and the increased wear caused by heavy vehicles, we are looking to raise the differential charged to commercial/industrial and post-harvest zoned properties to 4.0.
Framing the future
We have a total of 574 commercial/industrial and 24 post-harvest properties in our District. We will apply the increased differential on the assumption that properties in these zones are more likely to rely on heavy vehicle traffic use and therefore have greater impact on the roading network. We think our preferred option to increase the differential to 4.0 for these zones is more equitable and will mean that other zones will overall pay less toward the roading rate, reflecting the lesser impact they have on the network.
There is no impact on the overall rates or the debt over the 10 years, as we are simply proposing to change the amount different categories of ratepayers pay.
There are three options:
1. Our preferred option - Increase the roading rate differential charged to commercial/industrial and post-harvest zoned properties from 2.0 to 4.0. There is no impact on the overall rates, or the debt over the 10 years as we’re simply proposing to change the amount different categories of ratepayers pay. This will reduce the proportion of rates paid for by properties not in these zones (e.g. residential zone).
Impact on debt: No impact on debt over 10 years.
Impact on levels of service: No impact on levels of service.
Impact on each rating category
Commercial zone | An average increase of $2191.15 per property across the zone
|
Post-Harvest zone
| An average increase of $2051.24 per property across the zone
|
Rural zone
| An average increase of $110.04 per property across the zone
|
Residential zone
| An average increase of $250.76 per property across the zone
|
2. Increase the roading rate differential charged to commercial/industrial and post-harvest zoned properties from 2.0 to 3.0. There is no impact on the overall rates, or the debt over the 10 years as we’re simply proposing to change the amount different categories of ratepayers pay. This will reduce the proportion of rates paid for by properties not in these zones (e.g., residential zone).
Impact on debt: No impact on debt over 10 years.
Impact on levels of service: No impact on levels of service.
Impact on each rating category
Commercial zone | An average increase of $1368.10 per property across the zone
|
Post-Harvest zone
| An average increase of $1280.75 per property across the zone
|
Rural zone
| An average increase of $122.83 per property across the zone
|
Residential zone
| An average increase of $279.91 per property across the zone
|
3. Status quo – Keep the roading rate differential charged to commercial/industrial and post-harvest zoned properties at 2.0.
Impact on debt: No impact on debt over 10 years.
Impact on levels of service: No impact on levels of service.
Impact on each rating category
Commercial zone | An average increase of $500.62 per property across the zone
|
Post-Harvest zone
| An average increase of $468.65 per property across the zone
|
Rural zone
| An average increase of $136.31 per property across the zone
|
Residential zone
| An average increase of $310.64 per property across the zone
|
