infonews.co.nz
INDEX
COUNCIL

Rates increase pulled back

Tuesday 26 June 2012, 12:30PM

By Queenstown Lakes District Council

266 views

QUEENSTOWN

The Queenstown Lakes District Council has chipped 0.13% from the overall rates increase for next year. The recommended average rate increase for 2012/13 is now forecast to be 2.68%, said QLDC deputy chief executive and finance general manager Stewart Burns. This will be confirmed in the 10-Year Plan, set to be adopted on Friday.

The Council received 291 submissions with hearings held in May and deliberations completed earlier this month. “The combined effect of changes, based on submissions, is that the overall average rates increase has decreased slightly from 2.81% signalled in the draft plan.

As always, the actual increase for a particular property will depend on its location, services and the valuation movement. Rates movements for a sample set of properties show a range from a 6.84% decrease (vacant land Wanaka) through to an 8.8% increase (mix use accommodation Queenstown),” Mr Burns said.

The most significant change to the draft plan was to the proposed rates review. Council received 87 submissions in response to the rates review. In summary, the main focus of the submissions was the proposal to introduce a new Recreation and Events Rate.

“Unsurprisingly, the accommodation sector responded in opposition to the proposal, with the balance of submitters generally supportive of the principle that visitors should contribute (indirectly) to costs,” Mr Burns said.

In response Council reviewed and amended the proposed rate, resulting in a reduction in the impact factor from 2.8 to 1.8 for accommodation and commercial.

“The impact of the change to the recreation and events rate reduces the allocation to accommodation and commercial by 18.5% and reflects a much fairer allocation of cost,” Mr Burns said.

The effect was a significant reduction in proposed rates increases for accommodation properties; a lesser reduction in proposed rates increases for commercial properties with modest increases for residential. “The range of revised increases is much tighter and now reflects a fairer allocation of cost than previously,” Mr Burns said.

Sixty one submitters took the opportunity to speak to their submissions and Council thanks those who took the time to do so. The following is a summary of the changes to the draft 10-Year Plan resulting from community submissions:

  • Increase grant for Kahu Youth Trust (Wanaka) by $14,800 to $23,400 for 2012/13.
  • Increase grant for Wakatipu Youth Trust by $6,260 to $15,160 for 2012/13.
  • Approve capital grant of $6,000 to Hawea Community Association for Hawea foreshore carpark.
  • Approve capital grant of $10,000 to Glenorchy Community Association for extension of the Glenorchy Lagoon Walkway.
  • Increase grant for Hawea School Pool by $1,000 to $2,600 per annum.
  • Approve funding of $10,000 for Arrowtown Lighting Masterplan Design.
  • Increase budget for Sister City by $1,000 to $3,000 per annum.
  • Increase budget for Conferences by $10,000 with matching revenue of $10,000 for 2012/13 Community Board Conference hosting.
  • Bring forward $10,000 of capital funding to 2012/13 (from 2015/16) for design of Frankton Foreshore improvements.
  • Bring forward $148,500 of capital funding to 2012/13 (from 2014/15) for Jacks Point Playground.
  • Bring forward $67,906 of capital funding to 2012/13 (from 2013/14) for Alternative Water source for QEC.
  • Defer $217,128 of capital funding to 2014/15 (from 2012/13) for Gardens Lighting Improvements.


The Council will be asked to adopt the 10-Year Plan - which has significantly addressed the issues of affordability and value for money for ratepayers in the Queenstown Lakes District – at its meeting on Friday.