Impact

Ruapehu Bulletin, 10 August 1990, Page 4

Impact

In general terms the effect of a high uniform annual charge is to firstly favour higher valued properties against lower valued properties as the general rate in the dollar is consequently reduced arid secondly a higher charge increases the rate levy in urban areas as in these areas there are many more rates assessments of comparatively low land value. Uniform charges have the highest impact on low value properties and significant increases can be expected in this area resulting in the standardisation of charges and services. Uniform annual charges for water, sewerage disposal and refuse collection will also change the pattern of rates as once a per

property charge is standardised it tends to favour higher value properties as the rate in the dollar on those properties is reduced. This however is justified as land value does not reflect the quantity of service delivered and sewerage disposal costs, for example, are similar between different households notwithstanding differences in land value. A further factor that will contribute to variations in levels of rating is where new services have been provided or rated for the first time. Two prime examples of this are the sewerage reticulation in Manunui and the sewerage reticulation and disposal scheme at Rangataua, both which will result in ratepayers paying sewerage charges for the first time. Changes in methods of uniform charges for services will also result in a different rates spread. For example, in Raetihi, there were no separate charges for the sewerage disposal system last year as the expenditure involved in this activity was charged against the general rate. This year the general rate will be lower as a consequence but separate property charges will be imposed for the service delivered.