Nelson rate increase down to 5.67%

There was good news for Nelson ratepayers with several sought-after changes made to the draft Annual Plan as a result of submissions. 220 submissions were made to the 2010/2011 draft Annual Plan and last week Council spent two days making decisions following two days of hearings in late May.

Key changes

• The final rate increase has been lowered to an average 5.67%, down from 6.32%
• The proposed removal of the negative differentials on small holdings has been deferred
• The stormwater charges for small holdings that contribute water to streams maintained by Council will now be phased in over two years for those properties west of Gentle Annie
• $146,000 has been committed to the proposed Lee Valley Dam Design. $35,000 has been dedicated toward reviewing the policy for sealing rural roads
• There is an additional $10,000 funding for Uniquely Nelson, the organisation that coordinates and promotes the Central Business District
• Mayor Kerry Marshall says the consultation was a good result for Council and community alike. “We know affordability remains an issue for many in the post recession period. Getting the rates increase as low as possible is an important result, though our goal to deliver great value-for-money services remains uncompromised.”

Mayor Marshall added that some difficult decisions had to be made. “Balancing different needs in the community is always tough, but we responded to submitter feedback. Council took heed of the submitters against the proposal to remove the small holdings differential, and has put this on hold until a further rating review. Another strategic decision was supporting the design phase of the proposed Lee Valley Dam in Tasman. It’s important that we demonstrate our commitment to regional priorities.”

GST impacts on rates

Although the average rates excluding GST will increase by an average 5.67%, this figure will be impacted by central government’s decision to increase GST to 15% from 1 October 2010. This will result in 15% GST for all but the first instalment, and so the increase in the GST inclusive rates will be 7.43%. If ratepayers are able to pay their whole years rates before 1 October 2010 they will be charged the lower 12.5% GST level, and so make a saving on their total rates