FAQs

In the same way, our national taxes contribute to the running of the country, Council rates are important to ensure Wellington continues to function.  

We set our rates based on the needs of the community, demand for services and affordability in rates. Your money helps us deliver many day-to-day services and pay for the borrowings used to fund big capital projects across Tararua.   

This year's budget includes a proposed rates increase of 13.18%

A significant portion of this year’s proposed total rates amount is due to fixed cost payments that are beyond our control. These include 

• increasing interest payments on our debt 
• high inflation which is pushing up the price of goods and services 
• disruptions in the supply chain 
• the ongoing increase in compliance and regulations that Local Government must keep up 
• our infrastructure is already ageing and under-performing, which means we’ll have to replace or significantly upgrade it in the coming years.  

We have looked at every single Council operating cost and rationalised budgets as much as we can. We have looked hard at every service, programme and project on our books to find areas where spending can be reduced, or we can delay non-essential work. We have taken steps to reduce costs, including deferring decisions about some new additional funding to next year, and increasing some user fees and charges. Without the interventions listed above, the rates increase would be over 20%. 

The Council makes decisions on what projects and programmes are in and out of the budget every three years as part of the Long-term Plan process. This is a 10-year plan that allows us to map out the future of the city. This Annual Plan is year 3 of the 2021-31 Long-term Plan. Many of the projects in the plan have already started, were decided and consulted on separately by the Council, or are part of a wider multi-year programme. They are also funded through our Capital Expenditure budget, not the current year's rates. Rates pays back the debt over time, including any interest and depreciation. Stopping a project might have an impact on future rates but is unlikely to impact the current year.  

Depreciation funding is a way to account for the wear and tear of assets such as bridges, roads, parks, and water treatment plants over time. These assets need to be renewed or replaced eventually, and depreciation helps to calculate the cost of this process. By funding this depreciation through rates each year, ratepayers can contribute their fair share towards the use of these assets, both currently and in the future. 

By increasing the level of depreciation that we are unfunding, Council may not have the required reserves to pay for replacement of assets in the future. Council would need to borrow the money to replace the assets. There is a risk that Council may not be able to borrow all the money it needs as there is a limit on the amount Council can borrow of 150% by Council and 175% by the Local Government Funding Agency (LGFA). 

Therefore, we have recommended repaying the amount of reduced funding over the next 10 years.  

Each ratepayer pays for different rates depending on where they live and what services they are rated for. 

Urban and Industrial/Commercial ratepayers are primarily in the urban areas that are connect to the Water and Wastewater networks and they have large cost increases in this area. 

The funding council has received for the 3 Water Transition is covering the additional costs required to provide information and work with Central Government over this time. A portion of this funding has been used to offset staff costs for completing this work ($26k). 

Council is able to propose a rates increase higher than the Long-term Plan (LTP). The Financial Strategy is a guiding document for decision making and ensuring Council is making prudent decisions. As the levels of inflation and interest have changed significantly from the time the LTP was set, to keep rates below the level of the LTP would require a reduction in the service levels ratepayers have asked for

Targeted rates are paid by a specific group of ratepayers who receive a specific service - for example: 

- water for properties connected to supply 

- downtown targeted rate for commercial properties in the downtown area. 

The Council uses property values to allocate the rates we need to collect between all ratepayers – we don’t collect more rates just because values have increased and we don’t collect less rates if values have decreased. 

Property revaluation doesn’t affect the amount of money we collect from rates – it helps us work out everyone’s share of rates. 

You can click on "Go To Discussion" and leave your thoughts on anything to do on our rates proposals.  Other registered users can view your ideas, thoughts and comments and respond to them, much the same as you do on Facebook.

Anyone registered to view the Rates proposal page can leave their comments which can be read by anyone else registered.  Anyone not registered does not have access to your feedback.  Members of Tararua District Council may view your feedback to assist them with their decision making processes or to gain insights from your feedback.

All feedback or submissions are classed as public information because, within local government, we are obligated around decision making to be as transparent as possible.  Your name and any organisation you represent may be published online but we will not publish any personal contact or address information.

No, you are not obliged to appear at a hearing but you have the right to make your submission personally.  Time will be allocated for you to present your submission.

If you wish to make your submission personally, please indicate this on your submission.

Our hearing date is on the 7 June 2023 - the time will be published on our main Tararua District Council Website at: https://tararua.infocouncil.biz/ 

Direct Debit is Councils preferred method but there are a number of options available to you outlined on the Tararua District Council website.

You can pay by:

Direct Debit 

Online Credit/Debit Card

Internet Banking

Phone Banking

In Person

Click here to find out how.

There are several ways to help people manage their rates payments, such as spreading your payments into regular affordable amounts across the year using direct debits.  

With Central Government, we have a rates rebate scheme that provides a reduction in rates to those that meet set low-income criteria.  

•    if you are on a low income, you can apply for a Government rates rebate at: www.govt.nz/browse/housing-and-property/getting-help-with-housing/getting-a-rates-rebate 

If you are worried about paying your rates invoice, please get in touch with us as soon as possible at rates@tararuadc.govt.nz or call 06 374 4080 (north) or 06 376 0110 (south). 

There are also multiple ways to pay your rates: online, by direct debit, internet/telephone banking and in person at our Service Centres.