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Whakauka Ahumoni

Financial sustainability

Financial sustainability feature image

Whakauka Ahumoni

Financial sustainability

The 10 year plan is bold and ambitious, and addresses big challenges such as population growth, ageing infrastructure and assets, a housing crisis, and climate change – while also maintaining our financial sustainability.

We’re proposing a doubling of our investment in infrastructure and capital projects to $1.4B over the next decade to manage these challenges.

Our financial strategy uses a combination of rates and borrowing to ensure that we are achieving a balanced approach to paying for services and developments.

What we’re proposing

For 2021/22 financial year, we’re proposing to increase rates by 5.9% which means:

  • an average increase of $2.50 per week per household, or $130 per year.
  • an increase of $15 per week for an average commercial central property.

Over the next decade, proposed rates revenue increases range between 4.9% and 6.8%. This does not include the new rubbish and recycling service charges from 1 July 2021.

The Hutt City Council has made savings of $5.2M in the preparation of the 10 year plan which has helped to avoid larger rate increases - $1M equates to about 1% of rates.

Where will my rates be spent over the next ten years?

For every $100 you spend in rates, we’re proposing to spend:

Roads bridges and footpaths illustration
$11.61
Roads bridges and footpaths
Traffic management and parking illustration
$3.44
Traffic management and parking
Road maintenance and street cleaning illustration
$3.28
Road maintenance and street cleaning
Water supply illustration
$16.67
Water supply
Wastewater illustration
$18.44
Wastewater
Storm water illustration
$6.06
Stormwater
Waste and recycling collection illustration
$6.83
Waste and recycling collection
Libraries illustration
$4.50
Libraries
Development and growth illustration
$4.28
Development and growth
Sustainability illustration
$0.78
Sustainability
Consents and regulatory illustration
$2.44
Consents and regulatory
Promotion and events illustration
$0.72
Promotion and events
Museums illustration
$2.44
Museums
Pools illustration
$6.39
Pools
Recreation programmes illustration
$0.39
Recreation programmes
City governance and corporate services illustration
$3.67
City governance and corporate services
Halls and venues illustration
$1.17
Halls and venues
Parks and reserves illustration
$9.67
Parks and reserves
Community partnering illustration
$3.67
Community partnering
We expect to receive $6.44 of credit from the landfill. This will help offset costs and is reflected in the figures for all these other services shown on this page.

Rates policy – allocation of general rates between rating categories

Residents and commercial property owners pay different proportions of our city’s rates.

The allocation of general rates between rating categories (residential and commercial ratepayers) is proposed to change to a percentage allocation approach for sharing the total general rate and reduce the residential rating category share of general rates from 63% to 62% in the 2021/22 financial year.

The alternative approach is all ratepayers would pay proportionally the same percentage of the general rate (residential - 63%) as in the 2020/21 financial year.

Option 1 (preferred)

Option 2

Reduce the residential share to 62% of the total general rate, from 63%.
Keep the residential share of the total general rate the same at 63%.

To find out how your rates may be impacted use our rates calculator.

Rates Calculator

The rates calculator tool was prepared for consultation on the draft Long Term Plan. This consultation closed on 6 May 2021 and the rating data has not been updated. From early July you will be able to see your rates total for 2021/22 on the Council website property search or you can ring us on 04 570 6666.

The rates calculator is designed to give you an estimate of what the rates on your property would be for the 2021/22 financial year under each option developed by Council.

This calculator estimates the total amount of rates based on current property information and the option you select. Greater Wellington Regional Council rates are NOT included in this calculator.

Results from the rates calculator are not being recorded.

Please type in your address and then select the option you prefer to see what the impact on your rates would be. The calculator has two tabs, one identifying changes from the rating policy approach and the second identifying changes from waste services. Please be sure to check both tabs.

Council will make its final decision on the rating policy on 30 June 2021 following consultation in the proposed 10 year plan.

You might also be eligible for a rates rebate.

Rates policy – changes to rating category definitions

We’ve identified some options to simplify the rating system and make our different policies consistent.anchor

Rural differential rating category

Option 1 (preferred)

Option 2

Align the rural differential rating category definition with the definition of ‘rural’ in the District Plan.
Keep the current rural category definition, which defines rural properties based on size.

Frequently asked questions

What does a rural rating category mean?

Council recognises that properties in rural areas can have a greater distance to access Council services. To address this, residential properties in rural areas pay a lower amount of the Hutt City Council General Rate than residential properties in other areas of the City.

Targeted rates for water and wastewater are only charged to properties that can be connected to the city supply for these services.

What changes are being proposed as part of the 10 year plan?

We are proposing to change the definition of a rural property for rating purposes so that it aligns with the rural area in the District Plan. If a property is in the rural area in the District Plan, it will continue to be rated as a rural property.

Which properties are affected by the proposed changes to rural rates?

Properties in a rural zone in the District Plan will remain in the rural rating category. Properties outside the rural zone that have been rated in the rural rating category will move to the residential category.

What is the phasing in of any proposed increase and why are you doing this?

We would phase in any increase in the general rates payable by properties moving from rural to residential by adopting a change to our Rates Remission Policy. The new remission will allow us to grant a one-year remission of 50% of the increase to the general rate payable. The phasing in of any change is to lessen the impact for ratepayers in the first year.

How many properties would be affected by a change to their rural rates?

If the proposal is accepted by Council there are 54 properties out of 484 that would change from the rural rating category to the residential rating category. These properties will change because they are currently not in the rural area in the District Plan. The remaining 430 properties that are in the rural area in the District Plan will remain in the rural rating classification.

Commercial accommodation category

Option 1 (preferred)

Option 2

Remove and merge properties in the commercial accommodation rating category into either commercial suburban or central differential rating categories.
Keep commercial accommodation category.

Development and financial contributions policy

For every new development, The Council receives a payment that covers the impact of that development on services and infrastructure.

The 10 year plan proposes that The Council keeps a policy of meeting 100% of the Council’s planned growth costs from new developments, from development and financial contributions.

We estimate an increase in revenue of approximately $27.5M from development contributions over the next 10 years. This will result in an increase in budget from $10M to approximately $37.5M.

The updated policy will result in increases in some charges. The increase in revenue will result in lower borrowing and rates requirements. This reflects the significant increased investment we are proposing in our infrastructure to keep pace with our growing population.

Option 1 (preferred)

Option 2

Option 3

Keep a policy of meeting 100% of The Council’s planned growth costs from new developments from development and financial contributions.
Fund part of The Council’s planned growth costs from development contributions and financial contributions and the remainder from another funding source, such as rates.
Fund 100% of The Council’s planned growth costs from a funding source other than development contributions and financial contributions, such as rates?

You’ll find more detailed information in the Consultation Document. You’ll also find information on the policies that we are making changes to in Section 4 of the Draft Long Term Plan. Policies include The Rates Remission Policy, the Rates Postponement Policy and the Revenue and Financing Policy. The Rates Funding Impact Statement can be found in Section 7.

Te Tuku i Hō Whakaaro

How you can have your say

What do you think about our proposals for Whakauka Ahumoni – Financial sustainability?