COUNCIL NEWS

From the Mayor – August 2024

By Martin Connelly

June is the month when councils set rates. July is when the invoices often arrive. 

Unlike governments, which can increase some taxes one month and others in the next month, councils have to set rates all at once, there is no ‘easing the pain’ by gradual increases throughout the year.

This year the Council has done several things to try and make rates fairer for most people. I will

mention two. 

The first is that the Council has set the general rate using a property’s Capital Value rather than its land value. Here are some reasons why I prefer this approach:

* It is simpler to understand. It is easy to estimate the capital value of a property as it’s basically the market value, rather than trying to separately assess land and improvement values;

* For people who do business on their own land, when economic times are tough, their land will not really alter its value very much, but their business value may decrease. Rating on Capital Value takes these sorts of changes into account.

The rates of some forestry blocks will noticeably increase this year, because of the Capital Value rating system;

* For businesses it is fairer because it considers the actual use and development of the land.

The rates burden more closely aligns with the property’s overall value and its potential to generate income.

Most people are only interested in their rates, and so they ask “but what will my rates be?” 

It is hard to answer that question without more information, but what I can say is that the rates of a mid-value property in Martinborough (the urban area) will increase by about $6.25 a week. This does not include the rates set by the Greater Wellington Regional Council.

The second reasons why rates have become fairer is because of the way we will rate properties with

two or more separate “parts.” 

Imagine a section with two houses on it, next door to a similar-sized section with one house. In the past the rates for both properties would be very much the same if the land value was the same. 

From now on we will recognise the extra costs to council that can occur when two houses (or two separate apartments) sit on a property. Each house probably generates rubbish and waste, each house probably has a vehicle that drives on our roads. 

From now on we will charge some of our rates such as refuse and recycling, roading, water supply and wastewater on the number of ‘places’ on a section. This rating method is a bit more complex than this paragraph suggests, but I hope you get the general point.

Lastly, do you value the work done by your local Martinborough Community Board? I do. The recent identification of $300,000 that should have been allocated to the Pain Farm for the benefit of the estate’s beneficiaries, was the result of the boards’ efforts over a long time. 

The board holds regular “meet the community board” sessions where people can feed in ideas and raise concerns. Coming up, the board is planning another “what to do in an emergency” day. 

There are other exciting developments being planned, which will be revealed soon, I expect. 

I could say much more about the many things the board does for the betterment of the area. If you value what your Community Board does, then let the Council know when you get your chance to have a say on the future of local democracy in the South Wairarapa.