Rangataua support for differential rating

Ruapehu Bulletin, 31 August 1990, Page 4

Rangataua support for differential rating

A rate increase of 5.7% across the board, with a decrease of 20% and 8% in some urban areas, and an increase of 78% in some rural areas in the Waimarino district provoked lively

discussion at a meeting in Rangataua attended by 56 people. The Mayor, Garrick Workman, told the meeting it was the ninth such meeting and the fourth in the Waimarino

area. All Ruapehu District Councillors were present except two. Today the Ruapehu District Council will be fixing the rates and the method used will form the basis for future

rating. Mr Workman invited anyone who felt that the method was unjust and not the right way to strike the rates to tell the councillors, who would listen to any valid arguments. He said he knew excessive rate increases were not acceptable but after all the areas were examined there was a realization that a nil rate increase was not possible $7.6 million in rates is needed for a $15.8 million operation. The 5.7% increase across the board left Council with a maintenance only budget - very few new works would be carried out through the district. The Council was running a risk with no contingency fund for natural and major catastrophes, he said. The 5.7% increase would have been as high as 14% had it not been for two loans of $250,000 each which have been uplifted, one for roading work in the Taumarunui County Council, and one to fund the transition costs of establishing the new Council. The Council has until December 1992 to pay for this last loan and will do this by selling off Council properties. Mr Workman stated that losing the Western shores of Lake Taupo to the Taupo District Council meant a loss of rating revenue of $300,000.

The $250 charge being proposed is an example figure. The assurance given last year that the Uniform Annual Charge would not go above $150 referred to the former Waimarino District Council. Now that the population base is so much higher this has changed. By law a Council cannot levy more that 30% of the total rate requirement in UAC. The $250 UAC. is an attempt to keep the general rate down. There was considerable confusion as to the method of leveling of the UAC. on separate farm properties. Concern was expressed about rural rate-payers funding the urban areas' water and sewerage costs, but Mayor Workman pointed out that these are paid for by the people using them. The General rate covers administration, roading, recreation, cemeteries, rubbish tips, libraries. Several people expressed concern that while $1.9 million in rates and subsidies will be collected from the Waimarino area, only $1 million is programmed to be spent in the area, raising the question of whether the extra $900,000 is going to subsidize the Taumarunui area. Examples of the increases being faced by Rangataua, and Waimarino residents

were shown - one example being an unoccupied section in Rangataua, with a land value of $15,000 showing a 226% increase overall (this includes the sewerage payment).Mr Bill Peach, a Ruapehu District Councillor, produced figures that showed Waimarino County rural rate-payers paying $1.90c per stock unit, compared to T aumarumui rural rate-payers paying 0.99c per stock unit. This also showed Ohakune residents paying $446 per person, Raetihi residents paying $206 per person and Taumarunui paying $166 per person. Mr Peach felt that these figures clearly showed the unfairness of land value rating. Several speakers spoke strongly against the land value method of striking rates pointing

out how unfair it is when for example, a Pulp Mill is paying the same rate as a small runholder down the road. It was pointed out that while the Taumarunui area will be paying 8% less in rates across the board than last year, 60% of the loan servicing relates to the Taumarunui area. It was agreed that differential rating can be clumsy and there will always be anomalies but it was generally felt that it was a fairer way to make sure everyone paid their share. Bruce Berry moved a motion that the Ruapehu District Council adopt a system of differential rating and this was carried unanimously. Mr Workman assured the meeting that he would definitely be trying to convince the other . Councillors not to go ahead with the land value method.