Angry Far North ratepayers told to be patient over huge rates rise concerns

Far North District Council is urging ratepayers angry over big rates increases to be patient while staff deal with their concerns. The council, and many individual councillors, have had a large number of people complaining about their latest rates bills.

Irate ratepayers contacting Far North District Council (FNDC) after big rates increases have been told to be patient while council staff deal with their concerns.

As well, more than 1000 Far North property owners - more than double previous objections - have appealed to Quotable Value (QV) about their latest valuations, which the council uses to set rates, forcing the company to send extra valuers to the area to deal with the objections.

From July 1, the average general rates rise in the Far North was 6.78 per cent, but some property owners have complained their rates have soared much more significantly, with some saying they had almost doubled.

For the 2023/24 financial year, FNDC will collect $104.5 million, up from $97.8m in the previous 12 months. The council’s 2023/24 Annual Plan shows a capital spend planned of $103.4m, down by $26.6m, or 20.5 per cent, on the previous Annual Plan.

Far North social media sites have seen people complaining about their individual rate rises for weeks, and many have also contacted the council - and individual councillors - to voice their anger at the rates rising during the cost of living crisis.

The council said property owners concerned about paying their next rates instalment are being urged to review alternative payment options, such as rates rebates or remissions, on the council’s website. People can also contact FNDC’s customer services team on 0800 920 029.

The call comes after numerous property owners contacted elected members and the rates team expressing surprise and anger at increased rates. Many say their first rates bill for the new financial year is significantly more than the 6.78 per cent total rates increase promoted by the council in July.

Far North Deputy Mayor Kelly Stratford said like other councillors, she has fielded many calls from property owners confused and concerned about the increases.

“They are telling me they are already struggling to make ends meet due to inflation and other cost of living increases and are dismayed by increased rates. People are facing real hardship, and I’m urging them to contact our rates team to discuss payment options. But, please be patient as staff work through these requests,” Stratford said

Rising Far North land values are responsible for the lion’s share of increases seen by some ratepayers, and this has been repeated in many districts across the country.

The council uses land value to calculate the general rates portion levied against individual properties. Land value does not affect targeted rates charged for services such as sewerage or water. All properties must be valued every three years to help set council rates. FNDC appointed QV to undertake these property revaluations, and they reflect a property’s likely selling price as of October 1, 2022.

Rates can only be changed if an error has been made or the property owner lodged an objection to their property revaluation with QV before June 29, 2023. QV is working through 1,000 objections, more than twice the number of previous revaluations, and has sent extra valuers to inspect properties and process objections as quickly as possible.

“The value of some land types has increased dramatically since valuations were last conducted in 2019. For example, land zoned industrial in the Far North has increased in value by 120 per cent, horticulture by 54 per cent and residential by 77 per cent,” Stratford said.

“Residential land values in Kaikohe have increased by close to 150 per cent, 176 per cent in Kaitāia-Awanui and 197 per cent in Moerewa-Kawakawa.”

The increases have resulted in a high volume of queries regarding rates to council staff, highlighting confusion about the impact of recent property revaluations, and Stratford said increased land values do not mean the council is seeing a windfall in rates revenue.

“This does not change how much we have already budgeted to provide services to our communities. This has already been set through the Annual Plan and the Long Term Plan. What it does change is the portion of the total general rates bill each landowner pays. This is determined by land value. If your property has increased in value more than the district average, the council is obliged by the Local Government (Rating) Act 2002 to increase the share you pay.”