ICC wants 5% more revenue from rates

The Invercargill City Council is proposing a total average increase of 5% to rates in 2021, with lower level rises for following years, in its draft long-term plan, "Our Roadmap to Renewal".

The draft document says that in 2020-21, $56.8million in rates revenue was collected. This would rise to $60.3million in the 2021-22 financial year.

Council finance and assurance group manager Michael Day said the amounts included revenue from rates to be collected and also estimated income from other items throughout that year.

That included "rates penalties which may be applied and collected, new ratepayers which may be established, and any special arrangement which may be made, for example by a commercial ratepayer connecting to a council service".

The draft plan says the impact of rates increases will vary for different properties.

"A 5% increase in rates revenue doesn’t mean that everyone will receive a 5% increase in their rates bills," it says.

"So, the increase you will receive will depend on the rates and services your property is charged for, the type and value of your property."

Proposed rates variances in the plan range from an average increase of 3.7% for lower value residential properties to a 6.9% average increase for farming and agricultural properties.

The council is also proposing to simplify the rating system by reducing the number of targeted and differential rates, making it easier to understand and more cost-effective to administer.

"It will also mean that some services we all share, like streetlights and footpaths, will be paid for by all properties for the first time."

Included in the plan are the city centre masterplan and urban play space, as well as Rugby Park and the Southland Museum and Art Gallery.

The museum closed in 2018 because of earthquake safety concerns, and since then discussions about its future have been held.

Rugby Southland offices and the Rugby Southland Supporters’ Club were closed after toxic mould was discovered in 2019, and a part of the main grandstand also cordoned off over fears about the safety of the western end of the stand.

While the supporters’ club rooms had reopened in 2020, some of the other problems had not been rectified.

The long-term plan is set to be released for public consultation on Tuesday, after final changes are considered at a council meeting on Monday.

The council had spent months working on the document.

"We considered all of the feedback the community gave us last year during research and engagement, and subject to some final touches in the next couple of days, we’re confident we’ve got a fantastic proposal for our city for the next 10 years," Cr Crackett said.

The plan also includes the council’s infrastructure investment plan for the next 30 years and proposed changes for rates, she said.

"People will be able to see what the proposal will mean for their property on our website, with a special tool we’ll be launching when consultation opens."

The public would have a variety of ways to give their opinion, including public drop-in sessions where they could ask questions or share their feedback directly with councillors.

"Our Roadmap to Renewal" would be available to view on the council’s website, and the public consultation period would end on May 3.

 

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