For 2019/2020 Council has determined that the total revenue to be raised from General Rates will be $18.45m as per the Long Term Financial Plan.
To achieve this, Council decided that Primary Production would bear approximately 34.4% ($6.35m) of the total General Rates income. This represents a shift in the rates share borne by this group of ratepayers, of approximately 1% of total General Rates compared to 2018/19.
The remaining categories, Residential, Commercial, Industrial, Vacant Land and Other, will provide the remaining 65.6% ($12.10m) of the $18.45m total General Rates.
The fixed charge portion of General Rates will remain the same as 2018/2019 at $410 with the remainder calculated in line with valuations within each category. Using the Valuations provided by the Valuer General for each category Council is able to determine a “rate in the dollar” applicable to each category that will achieve the amounts required in each category.
In the Residential land use category, valuations have risen by $84m (3.7%) in the past year which is similar to the rate increase required (3.5%) so Council has been able to keep the “rate in the dollar” for 2019/2020 almost the same as 2018/2019 for this category.
In the same period, Primary Production values have increased by $530m, an average of 16.6%, across the district, which is far greater than the 3.5% rate increase required for this category. Council has therefore reduced the “rate in the dollar” for this category to achieve only the amount of rates equivalent to 34.4% ($6.35m) of the total General Rate income required to fund the 2019/20 budget.
The rates in the dollar and General Rates raised for 2019/2020 and 2018/2019 are compared below:
Land Use Category
|Total Rate Increase Compared to 2018/19|
|Rate in $||Rates Raised||% of Total Rates|
|Primary Production||0.0015855||$6.35m||34.4%||6.6% ($394k)|
|Land Use Category||
Rate in $
|% of Total Rates|