Council’s work is funded from a mix of rates, fees, charges, grants, and investment income. To minimise the cost to ratepayers, Council uses other funding sources where it can such as dividends from Quayside Holdings Limited. In the 2022/23 year, rates are budgeted to contribute a total of 41% ($71 million) of total funding, meaning the other 59% is funded through other sources.
There are two types of rates charged, general rates, which everybody pays, or targeted rates, paid only by specific groups of ratepayers, or a combination of both general rates and targeted rates.
Costs outside of Council’s control, including inflation and operational costs have increased, but Council is keeping rates as low as possible while the economy recovers from COVID-19.
The general rates increase for 2022/23 is 5.8% (an average of $32 per property) which is the same increase as in 2021/22. There was a 0% increase in 2020/21.
The general rates increase quoted is made up of both the Uniform Annual General Charge (UAGC) and the General Rate based on land value.
General Rate – Uniform Annual General Charge (UAGC)
The Uniform Annual General Charge is set to a maximum of 30% of the total rates charge and is in line with Government legislation. Applying a UAGC ensures a more equitable spread of the cost of providing Council services that have benefit across the region.
The UAGC for 2022/23 is $178.23 which is an 8.6% increase on 2021/22.
General Rate - Land Value
The General rate based on land value is charged at an average of 2 cents for every $1.00 that your property is worth. The amount you are charged this year is driven by two main factors.
- The cost of the work we do is funded by general rates as set out in Council's Annual Pan 2022/23 and Long-Term Plan 2021-2031.
- The revaluation of properties by Kawerau District Council and Tauranga City Council for the 2022/23 financial year.