Purpose
The Revenue and Financing Policy lets the community know Council’s proposed funding mechanisms for its activities, such as transport, environmental management and parks. The Policy outlines what funding sources, such as rates, fees and charges, or borrowing, are used to pay for the activities. It also outlines Council’s consideration of the impact of those funding sources on community well-being, along with any changes Council is proposing to the allocation of the rates, fees and charges and borrowing as a result of that consideration. Council is required to have this Policy, which is updated in association with preparing a Long Term Plan.
Council’s proposal for the Revenue and Financing Policy is contained in the Draft Policy, which you can read by clicking on the PDF link in the right hand column.
In addition to the changes outlined below, we have made many other changes to the previous policy for administrative reasons, to improve the readability of the policy and to reflect legislation changes. You are welcome to make comments on any aspect of the policy, in addition to the specific questions we have asked below.
The existing Policy adopted by Council in 2021 can be found in Council’s Long Term Plan 2021-2031 on page 262: https://www.nelson.govt.nz/assets/Our-council/Imag...
| Consultation matters | Advantages | Disadvantages | Options |
| -Te Ture Whenua Māori Act: Proposed changes to the introduction section to state how the policy supports the principles set out in the Preamble to Te Ture Whenua Māori Act 1993 (TTWMA). | The proposed amendments meet the legal requirement to state how the policy supports the principles set out in the Preamble to TTWMA and remove rates no longer offered. | No disadvantage | Council has no option but to add wording relating to TTWMA, as it is a new legal requirement. However the wording, could be amended. |
| Removal of Forestry differential: In section 7 of the Policy, proposing to split out the Forestry category from the Rural category of land and not to apply the negative 35% differential to land in the Forestry category. | Forestry land would pay the full general rate, which better reflects the costs and impacts of the activity on roading infrastructure. Rural category land would still receive the benefit from paying a lower level of general rates created by the differential. Other ratepayers will benefit slightly from Forestry land paying a greater proportion of the general rates. | Owners of Forestry land may see this as a disadvantage as the land would no longer benefit from the negative 35% differential and would therefore pay higher general rates. | Council could decide not to make these amendments. If so, the advantages would not occur and Forestry land would pay lower general rates. |
| Commercial Differential In section 7 of the Policy adding wording reflecting Council’s decision in the Annual Plan 2023/24 to hold the Commercial Differential to the level of the previous year, while continuing to enable Council to decide on an annual basis whether to retain the Commercial Differential at the current level or to reduce it by up to 0.5% per year. | Outlines the current situation with the Commercial Differential and retains the ability for Council to consider each year whether to reduce it by up to 0.5%. | No disadvantage. | Council could decide not to make these amendments but that removes a signal to the community of Council’s ongoing interest in the matter and the level of reductions likely to be contemplated each year. Council could decide to amend the wording or change the percentage the differential could change by. |
| Change to Stormwater and Flood Protection Rate and making Flood Protection Rate based on land value: Adding a new sub-section 7.4 on the proposed changes to targeted rates, involving:
| Separating the flood protection and stormwater rate into two targeted rates increases transparency to the public on these activities. It also expands coverage of the flood protection rate to better reflect the areas likely to benefit from the work undertaken by the rate funding. The August 2022 event means that Council is now undertaking flood protection works over a greater area of Nelson. | There is no disadvantage in splitting the rates, apart from some increase to Council’s administrative costs in collecting the rate. The disadvantage of expanding the coverage of the flood protection rate is that some ratepayers will start paying for this activity who currently don’t pay. This is an advantage to ratepayers who do currently pay the rate. | Council could decide not to make these amendments. If so, the advantages would not occur and the rates would stay the same as currently. Council could also decide to split the two rates but not expand the coverage of the flood protection rate. |
| New Recovery Rate Adding into the new sub-section 7.4 the proposal to create a new uniform targeted rate of $300 (including GST) per separately used or inhabited part of a rating unit (SUIP) to pay for the recovery costs associated with the August 2022 severe weather event. | Council considers that creating a new uniform targeted rate to pay for the recovery from the August 2022 event enables transparency of these costs to the public. This rate is also planned to cease in ten years once the costs of the works have been paid for. | The disadvantage of creating a new uniform targeted rate to cover recovery costs is the administrative cost of charging a separate rate from the general rate. | Council’s options in relation to paying for the recovery include collecting the costs through the general rate or setting a targeted rate on land value instead of as a uniform targeted rate. Setting the rate on land value would benefit ratepayers on lower value properties who would pay less, while higher value property owners would pay a higher proportion of the costs. Council considers that all ratepayers equally benefit from the recovery work and that a uniform charge is more appropriate. Council could also change from charging the rate to each “SUIP” to a rate based on each “Rating Unit”. A change would reduce the rating impact on properties with parts used or inhabited by different groups or individuals (e.g, retirement villages or multiple tenanted commercial properties) while increasing the rating impact on other ratepayers. |
How to have your say | Whakahoki kōrero mai
This is your chance to have a say on the draft Revenue and Financing Policy. We want to hear from you.
Please look through what we propose and let us know what you think by 28 April 2024.
Submissions can be made:
- Online by clicking on the Make a Submission button on this page
- By dropping it off to Civic House, 110 Trafalgar Street, Nelson
- By post to Nelson City Council, PO Box 645, Nelson 7050. Freepost 76919
- By email to submissions@ncc.govt.nz
Consultation information is also available from:
- Our Customer Service Centre at the corner of Trafalgar and Halifax Streets
- The public libraries in Nelson, Tāhunanui and Stoke
- Or talk to a person by calling us on 03 546 0200 to answer your questions.
The Council will inform all submitters that supply their contact details of the final decisions it makes on the rating policies.
Submitters have the opportunity to present their feedback on these policies verbally to councillors, at the Long Term Plan hearings, which will take place on 9-10 May 2024.
