February 12, 2006

Media Release (For Immediate Release)

Land Value To Stay-For Now

Waitakere City Councillors have voted to stick with the Land Value system for calculating rates for 2007/2008.

The Council has been examining alternative rating systems, including a possible change to “Capital Value”, which sees rates charged against the total value of a property (instead of the value of the bare land).

But in making its decision, today’s meeting of the Finance and Operational Performance Committee did not rule out a change in the future.

Councillors asked for further work to be done with a view to any changes being recommended to a new Council, which will be elected in October 2007.

Councillors indicated that whilst favouring the Capital Value rating system they want more information on the possible impacts on small and medium sized businesses in particular (which make up the bulk of businesses in the City).

They also want more detail on whether a change would have a detrimental affect on property investment decisions (particularly around town centres), and what, if any, impact the impending Waitakere Ranges Heritage Area Bill will have on property values- and therefore rates-in rural areas.

Another factor in holding off on a decision is that all properties in the City will be re-valued next year and impacts of those on individual properties need to be closely examined.

“With such a significant change to the rating system it would be confusing and unfair on people to follow that up with, potentially, large increases because of revaluations,” says Janet Clews, chairman of the Finance and Operational Performance Committee.

In addition, the government has announced a nationwide inquiry into Local Government funding.

“We don’t want to make any major change only to have that negated by what is going on at national level,” says Councillor Clews.

Meanwhile, next week the Council begins its deliberations on draft budgets for the 2007-2008 financial year.

Ends

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