A rates rise of almost $6500 for a Central Otago farm is being scrutinised as the district council takes a closer look at increases in rural property rates.
Twenty ratepayers, mostly owners of rural properties, have asked the Central Otago District Council for remissions because of "anomalous or inequitable" rates rises.
Their rates bills this year ranged from $916 (up from $848 last year) to $26,124 (up from $19,631).
The rates bill faced by Barbara Groundwater,
co-owner of an Omakau sheep and beef farm, was the highest among the objectors who sought remissions.
She attended a recent council meeting and asked why the rates rise, more than 30%, was so steep.
In a report, council revenue and financing manager Jamie Cunningham said a review of the revenue and financing policy revealed some "inconsistencies" in the way some rates were set.
This affected the rates funding for unsubsidised roading, stormwater infrastructure, public toilets, recreation and culture.
While the Maniototo, Cromwell and Teviot Valley areas had consistent approaches, the Vincent Community Board area had several differentials based on location or distance from Alexandra, he said.
That meant rural properties and farming and lifestyle blocks were paying substantially less rates than properties of a similar value and land use in other parts of the district.
The council decided to impose a fixed recreation and culture rate and make unsubsidised roading, stormwater infrastructure and public toilets funded district-wide, with a rate based on capital value.
The changes took effect for this year’s rates and resulted in "large percentage increases" to rural Manuherikia properties, Mr Cunningham said.
Although the council considered a "phasing-in" period, it decided one increase would be less disruptive.
Cr Neil Gillespie asked whether a stepped approach would have been better.
Mrs Groundwater said it would have been easier to budget for.
Cr Malcolm Topliss said rural ratepayers, especially in the Manuherikia ward, seemed to be the worst off in the latest rates rise and he asked for closer scrutiny of the calculations involved in those rates.
The council agreed to take a closer look at the rating anomalies and get a further report.
No decision was made on the requests for remissions.
● A request for a rate remission from the owners of the Golden Gate Lodge in Cromwell because of business development was declined.
The owners are spending more than $3million developing the facility.
