So what has happened to the numbers?

The financial planning, work programme and service delivery associated with the Annual Plan may be subject to some change, due to the COVID-19 pandemic.

2022/23 Impact

In the Long Term Plan, we approved a cap for rates increases of 10.4% (including Local Government Cost Index). The proposed average rates increase is 9.8% for 2022/23 – this falls below the cap.
The proposed budget does not meet the balanced budget benchmark due to the impact of COVID-19 on tourism revenue and a change in expected timings of Parklands residential section sales. This is in line with the Financial Strategy, which forecasts that Council will not meet its balanced budget benchmark until Year 10 of the LTP.

Looking ahead To 2023/24

Due to the change in phasing for the kerbside waste collection and additional capital for the Napier Aquatic Centre, there is a possible 1% increase on rates for 2023/24.

Impacts per year:

• Cost of servicing additional loan for the Aquatic Centre +0.3%
• Impact of further smoothing costs of the kerbside waste collection +0.7%

These two increases alone bring us close to the identified rates cap for 2023/24, and may impact our ability to fund new initiatives as we develop the Annual Plan for 2023/24.

Examples of proposed rates for 2022/23

The three-yearly revaluation for the city for rating purposes was undertaken in 2020 and those new valuations apply as the basis for setting the rates for 2022-23. The rating examples should be read having regard for the following:

• Council’s total rates revenue for 2022/23, excluding rate penalties and water-by-meter charges, will increase by 10.1% which is an average increase of 9.8% for existing properties after an allowance of 0.3% is made for new properties added since last year.
• Council consulted on changes to differential categories and differential factors for the 20-21 rating year. The changes are being phased in over 3 years and this results in impacts, in particular on properties previously rated in the Rural and Bay View categories.
• As property values directly affect the level of general and targeted rates charged on either land or capital value, changes in property value, above and below the average movements across the city will mean that the rate increase properties will be greater or less than the proposed 9.8% overall increase for individual properties.

There are no changes to the rates funding impact statement (FIS)

Rating base information