MEDIA RELEASE: Clarification of the 14.28% rate increase used in the LTP

29 July 2021

You would have heard statements that in South Wairarapa District people’s rates had increased significantly and that Council’s overall rates increase is 28%. This is not quite true.
The figures cited by some speakers at yesterday’s Council meeting were based on $17.8 million. This was the amount collected in rates last year. It actually cost $19.3 million to deliver the services, however, Council softened the impact on ratepayers by borrowing $1.5 million. The 28% cited by speakers did not take this loan into account.

Following the LTP consultation, Council agreed this year’s programme of work had an associated cost of $22.9 million. This is an uplift of 18.6% on last year’s cost of $19.3 million. When this is adjusted for the growth in property numbers, the rates increase for a property with the average urban land value of $350,000 is 14.28%, as stated by Council.

We recognise the shock of an unexpected rates rise for many families. Rural lifestyle properties in particular have increased markedly since the last valuation, which means the proportion of the rural General Rate that lifestyle properties have to bear has increased as a result. At the same time some rural property values have decreased and their proportion of the rural General Rate has decreased.
The rating profile for each property is different, making it difficult to convey each individual rates increase within the context of the LTP consultation, given we have approximately 7,000 rating units.

We are working on providing more detailed information on the impact of land values to help ratepayers understand their individual rates increases.


Media contact: Sheil Priest, Communications & Engagement Manager
South Wairarapa District Council
Mob: 027 252 2863

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