How Rates are Calculated

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How Rates are Calculated

The Marlborough district is divided into six geographic areas for the purpose of rating general works and services rates and charges. These areas are:

  • Blenheim
  • Blenheim Vicinity
  • Picton
  • Picton Vicinity
  • General Rural
  • Sounds Admin Rural

All properties are rated for a:

  • Geographic works and services rate (for the appropriate geographic rating area and land use differential based on land value)
  • Geographic works and services charge (for the appropriate geographic rating area)

The amount levied for each is determined by the benefit allocation for each Council activity/function.

Council also levies targeted rates/charges for particular areas of benefit or services provided including:

  • Debt servicing
  • Roading
  • Wairau Valley river flood protection
  • Sewerage
  • Water
  • Refuse and recycling
  • Energy efficiency
  • Tourism

Council's Annual Plan/Long Term Plan

Part 4: Funding Impact Statement and Rates includes:

  • Details on all rates and charges.
  • Indicative impact on benchmark properties.

The rating effect is different on individual properties because:

  • Movements in general rates do not impact uniformly on each geographic rating area, and
  • Movements in targeted rates affect only those properties receiving those services.

The only factors responsible for increasing rates on an individual property are:

  • If an individual’s property value increases by more than the average increase for their geographic rating area.
  • If an individual’s property value decreases by less than the average decrease for their geographic rating area.
  • If an individual’s property value alters as a result of new improvements being added (only affects rates levied on a capital value basis).
  • If the property changes its eligibility for separate service rates/charges (e.g; it now qualifies for water, sewerage, refuse and recycling etc).
  • If Council amends its Revenue and Financing Policy. Council amended its Revenue and Financing Policy in accordance with that proposed in its 2018-28 Long Term Plan Consultation Document.
  • If Council increases its rating income requirement through the Annual Plan
    process.

Note: This revaluation the geographic rating area revaluation movements are mainly
increases. Last revaluation the revaluation movements included both increases and decreases.

2018 - 2028 Long Term Plan - Part 4 : Funding Impact Statement and Rates can be viewed here

Council's full Long Term Plan/Annual Plan can be viewed here

A hard copy can be viewed at Council's offices.