Annual Plan 2022-2023 Deliberations

16 June 2022

Spreading the load was the aim of the resolution that saw Kawerau District Council resolve to change the rating differential for the 2022-2023 year.

At the Extraordinary Meeting on Tuesday, June 14, the Council discussed the need to take into account the submissions of the residents and those representing the industrial and commercial properties.

With the aim to find some middle ground, the Council discussed changing the rating share or differential to 48% for residential properties and 52% for commercial/industrial properties.

This helps to spread the load of the $1 million rating shortfall following the reduced valuation of Norske Skog (formerly the district’s largest ratepayer) after it closed in June 2021. 

Mayor Malcolm Campbell said, “Council believed this was somewhat middle ground although we understand it will be a bitter pill to swallow for all ratepayers.”

The impact of a 48:52 rating share on the Kawerau District:

Residential:

• 13.6% average rates increase for residential properties (which will vary depending on the revaluation).
• Example: For a residential property in Domett Street now valued at $310,000 this will equate to an increase of rates of approximately $358 per annum, or an $7 extra a week.
• Example: For a residential property in Cobham Drive with a new valuation of $450,000 this equates to an approximate increase of $444 per annum, or $9 extra per week.

​​​​​​​Commercial/Industrial:

• 25.5% average rates increase for commercial/industrial ratepayers.
• Example: For an Islington Street commercial property now valued at $240,000 this will equate to an annual increase of approximately $1,990 or an extra $38 per week.
• Example: An Islington Street property now valued at $1.09m will pay approximately $7,299 extra each year (and $140 extra per week).

Please Note: All figures are approximate and will rates increases will vary in properties due to the revaluation variations.

In addition, the Council resolved to increase the uniform annual general charge from $600 to $750 per property. 

The second consultation topic that Council deliberated on at the extraordinary meeting was whether to proceed with a resource consent to establish a secure asbestos containment site.

With submissions in favour of establishing a site, and Council noting that the majority of those against the establishment, could be in favour if they were assured of the environmental monitoring and controls.

Therefore, the Council resolved to budget $50,000 to complete detailed plans, provide more information and continue consultation. Council will then decide at a later date if it would establish the site and if it did, whether it would be used for the disposal of asbestos containing material from the Kawerau region only, or for the Eastern Bay region. 

These details and information would now be undertaken and bought back to Council to make a decision at a later date.

The impact of not going ahead with the secure asbestos containment site means an additional 1.8% to the rating increase. This is due to the anticipated surplus of $200k was put into the annual plan budget.

ENDS

For more information, please contact Tania Humberstone on 027 464 3785.