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Proposed Implementation Process

Our intention is to implement the proposed changes to the rating policy in conjunction with the Long-term Plan in the 2021/22 financial year, from July 1st 2021. 

As part of our Long-Term Plan consultation, we will consult further on our proposed changes to the Rating Policy and if necessary, we may also consult on changes to the Revenue and Financing Policy.

The key outcomes we wish to achieve from this consultation are:

  1. Confirmation of the proposed funding mechanisms in the Revenue and Financing Policy
  2. Confirmation that the proposed changes to the Differential categories for the General Rate are appropriate and will provide us with a simpler and more consistent approach to rates.
  3. Confirmation that introducing a new Targeted Rate for Stormwater based on Capital Value is appropriate as part of our overall goal of sharing the rating burden between groups of properties.
  4. Confirmation that a move to charging for wastewater based on the number of pans (toilets/urinals), rather than Separately Used or Inhabited Parts of a Rating Unit, is the best method to fund Napier’s wastewater activity.
  5. Confirmation that our proposed changes to the Council Rates Remission Policy and Rates Postponement Policies are appropriate in helping us to achieve our overall goal of sharing the rating burden across different sectors of the community.

Following this consultation process, we will collect and analyse data to model the possible impacts of a change to charging for wastewater based on the number of pans.  We will also consider any proposed changes to budgets and activities funding when we prepare our draft Long-Term Plan for 2021-2031 (LTP).

As part of our LTP consultation, we will then consult again on any further changes resulting from the impacts of introducing a pan charge and budget and funding changes. This may include a decision to delay the consultation or implementation of some of the proposed changes outlined in this proposal.

Reasons for the proposed changes

There have been changes to our Revenue and Financing Policy over the last few years. However, due accumulated changes to the activities and services that we provide to the community, it was considered timely to undertake a full review based on first principles.  This is where we have considered each activity in detail and have analysed who benefits, the length of the benefit received and the groups or individuals that create the need for the activity. As a Council we are also required to think about the impacts of our financing decisions on the wellbeing of the community.

We are also proposing a Rating Policy which provides the linkage between the Revenue and Financing Policy and the Funding Impact Statement which will be included in our Annual Plans and Long Term Plans to clearly set out our proposed approach to rating.

The Rates Remission Policy and Rates Postponement Policy are affected by changes to the Rating Policy. Some of the changes we are proposing in the Revenue & Financing Policy and Rating Policy affect certain existing remissions and postponements in these two policies. This means they would no longer work the way they were originally intended. A review of remissions and postponements allows us to make sure provisions within these policies are still relevant and workable.

Please note: The proposed changes do not affect the total amount of rates that Council collects.

This proposal 

This Statement of Proposal is about proposed amendments to the Revenue & Financing Policy, Rating Policy, Rates Remission Policy and Rates Postponement Policy.

The proposed amendments will change how we calculate rates and will change the rates assessed on each individual property.

We have provided a rates comparison tool on our website to allow rate payers to compare their current rates calculation with how it might look if our proposals are adopted. Information in the rates comparison tool is based on data from the 2020/21 rating year and is for comparative purposes only. Final rates set during the 2021 to 2031 Long Term Plan process will vary from those presented in the rates comparisons tool as will subsequent Annual Plans.

The process followed for the Revenue & Financing Policy Review

Under the Local Government Act 2002 (s.101(3)), Council is required to follow a two-step process to decide what is appropriate funding for each activity as follows:

  1. consider various factors relating to each activity’s funding; and
  2. consider how any allocation of liability for revenue needs impacts on the wellbeing of the community.

A summary of this process can be found in the diagram below.

Process Summary Diagram 

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