Rates rise reply

Ruapehu Bulletin, 24 June 1997, Page 2

Rates rise reply

The following is in reply to Winston Oliver's letter, Ruapehu Bulletin, 17 June 1997, in respect of the matter of rates calculated, from Ruapehu District Council acting chief executive Chris Ryan: • In the six years from 1991 to 1996 the rates on Mr Oliver's property increased by $400.58 or 13.7%. That level of increase compares with the increase in the Consumer Price Index (CPI) over the same period of 13.8%. The point to note here is that during that period of six years the land value for the properties on which the rates were levied remained without change. This allows a clear understanding to be gained as to the level of council-driven increase in rates levied. If one looked at the rates actually levied, together with the proposed rates to be levied, for the eight years from 1990 to 1997 then a different picture reveals itself. The impact here is entirely related to movements in land value, as determined by Valuation New Zealand. The combined land values of Mr Oliver's properties have increased by 140% during that period and results in the increase Mr Oliver refers to. The average increase in land value across the district for the same period was 98%. This above-average increase in the underlying land value is an issue which is clearly beyond the council's control. Council's policy is not to interfere by using differential rating systems that rebalance the underlying increases in land value between ratepayers.

Chris Ryan, Acting Chief Executive