Everything Kāpiti

Ngā Pitopito kōrero mai i te Kaunihera o Kāpiti 

Kia ora Kāpiti

Part of preparing our Annual Plan 2023/24, is setting rates for the year ahead. This is by far one of the hardest jobs of Council, especially when we are all experiencing challenging economic conditions and inflation is having a major impact on the cost of our work programme. 

Through a series of workshops, and some hard work, we’ve settled on an average rates increase of 7.8 percent. This increase is slightly below the 7.9 percent forecast for year three of our Long-term Plan 2021–41, and significantly lower than the forecast 14 percent increase we were facing in December 2022. Note, the increase does vary depending on the location and the value of your property. 

The reality is, we need rates to deliver for our community – from libraries and swimming pools and parks, through to dog registration and building consents, and our essential infrastructure such as water and roading. Revenue from rates accounts for around three-quarters of our income. 

While Council understands a rates increase is not what anyone wants to hear, right now it is unavoidable. The increase is mainly driven by external factors such as inflation, interest rates, increased labour costs and depreciation. We cannot continue to invest in our resilience and maintain our levels of service without it. 

Despite what we’re up against this year, I am excited for the year ahead. We will continue to deliver a work programme that will see many projects and initiatives progress – some will safeguard our important infrastructure and others will bring people together and strengthen cultural and social wellbeing. 

A message from your elected members 

What the increase means for you 

While the average rates increase across the district for 2023/24 is 7.8 percent, the actual increase will depend on your property and location. This is because property rates are calculated using a combination of fixed charges, land value and capital value. Land value and capital value are assessed independently by Quotable Value New Zealand Limited. 

Greater Wellington rates  

How we landed on 7.8 percent 

Setting rates is about finding that balance between keeping rates affordable and investing in our district. We worked hard to reduce the forecast increase to 7.8 percent, slightly lower than the 7.9 percent forecast in year three of the Long-term Plan. This is how we did it: 

Repurposing the Better Off funding
We have submitted an application to Government to repurpose some of our tranche 1 Better Off Funding – to cover projects where operating costs have increased substantially. This means we are able to reduce the average rates increase by 3.8 percent.

Removal of net expenses for the Te Uruhi project
 In our Long-term Plan we had assumed the Te Uruhi facility would be up and running in year three, so budgets had factored in the usual costs of running a Council facility – power, security, staff etc. As this project is no longer going ahead, we were able to remove these expenses from the Annual Plan. 

Council has committed to look at other ways to achieve the objectives of the Te Uruhi project and are allocating a budget of $150k (of absorbed costs) to do this work. 
 
Growth
We have not experienced the growth of rating units as forecast in our Long-term Plan 2021–41 – we were anticipating this to have grown by 1.3 percent in year three but at the start of this Annual Plan process we adjusted it to 0.6 percent. Since then, we have confirmed an increase in rating units which spreads the rate burden across more ratepayers. This has allowed us to confidently increase growth to 0.7 percent. 

Where the money goes  

In 2023/24, the cost of providing services (rates revenue required) is approximately $90.8 million (excluding GST). 

Below, we show the approximate cost per resident per week for each service area, based on our current estimated population of approximately 57,600. 

Help with rates 

What matters most? 

Over the coming year, we will be working with our iwi partners and community boards to plan and engage with the community on confirming our new strategic priorities, developing a new community vision and accompanying blueprint for change, and preparing our next long-term plan. You will hear more about this work and how to get involved in the coming weeks and months. 

Next steps  

The plan will be presented to the full Council for adoption on Thursday 29 June 2023. Rates will also be set at this time.