Proposal to cap rates increase at 5.1 per cent

From City Scene, published on 16 March, 2008

Finance and Strategy Committee chairperson, Councillor Doug Armstrong, says the aim is to keep improving the city while capping any rates increase to the level of council's inflation, forecast at 5.1 per cent next year. If the proposed rates increases are implemented after public consultation:

residential properties outside the CBD will pay a $154 uniform charge and $222 for rubbish and recycling services, a combined increase of $82 on the previous year
the CBD residential targeted rate will increase by $3 to $55
the general, valuation-based, rate for residential properties outside the CBD will remain unchanged from last year.

The council's rate of inflation reflects price increases that it needs to absorb to maintain current service levels, and differs from the consumer price index used for the household sector. This is because the council faces and has to anticipate a different range of price pressures, including the greater impact of construction and petrol price increases on its work, and allow for borrowing, depreciation, staff costs and other expenditure. The council proposes to continue to reduce the rate in the dollar businesses pay compared with residential ratepayers. Business properties already pay a higher rate in the dollar compared with residential properties and the council's aim is for all businesses to pay, on average, $1.80 for every $1 paid by a residential ratepayer, by the 2012/2013 financial year.

The decisions made at the Combined Committees meeting will be included in the council's draft annual plan that will be available for public feedback from 18 April to 20 May 2008. The Combined Committees will meet again in June to set the budget and rates levels for the 2008/2009 financial year.