Readers' rates questions answered

Local authorities comment on a sampling of letters to the Herald


Richard Hayward of Oratia reckons there's "too much democracy in New Zealand", after reading some confusing Waitakere City Council literature.

The council put out a paper last year describing the individual components of the average rate bill.

"Democracy Services was a large [if not the largest] proportion of the total bill, but the only item not explained in the propaganda."

So, what are "Democracy Services"?

Democracy Services, says the Waitakere City Council public affairs manager, Dai Bindoff, "is that department of the council which ensures that the council, and all its committees, run as they should, according to acts of Parliament".

The service carries out a number of tasks, including writing council agendas and calling meetings "on behalf of the democratic function".

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Gail Seedy says the setting of rates is a licence to print money for her council.

Three years ago, the Rodney District Council re-zoned her Kumeu property "future urban", and lifted her rates from $2200 to $3800 a year.

Her Auckland Regional Council rate soared, too, from $300 to $600.

Rodney has now delayed the future urban development. However, there has been no corresponding drop in her rates. Now, she has had to get a part-time job to help pay for it all. As a result, she has been left feeling the council sets whatever rate it wants, simply "to get more money".

The Rodney District Council communications manager, Michael Briggs, says though development has been delayed, Kumeu is still zoned future urban.

He says that development has been stopped while a future plan is formulated to deal with increased population in the area. It is also necessary to upgrade existing infrastructure, such as roads and sewerage.

"The only reason it was delayed is because the Kumeu community wants to make sure this is managed well."

However, the future urban zoning means Mrs Seedy can now subdivide her property, something she could not do when it was zoned rural, Mr Briggs says.

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The Rev Dick Thompson says the Auckland City Council "collectively denies reality" by ordering "above normal" valuation increases on coastal properties, then mailing out its rates demands before anyone has a chance to object to the valuation.

Could property owners expect a rates refund if the Valuation Court disagreed with council-set valuations?

Auckland City councillor Vern Walsh says objections to revaluations will continue to be processed over the next few months.

But when a revaluation objection is successful, and results in a rates alteration, the property owner will either be reimbursed (if the valuation goes down) or back-charged (if the valuation increases). Last year's revaluations were independently audited by the Valuer-General.

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"You pay rates, and you get nothing at all," says Hauraki District ratepayer Roger Strong.

He says city ratepayers should spare a thought for their country cousins, who get very little for their money.

"The people on our road [about 30km from Paeroa] pay rates for almost no services at all. We do not get any water, sewerage, any rubbish collection, or indeed any services except the occasional maintenance of our shingle road."

Hauraki District Council chief executive Langley Kavers says Mr Strong will pay nothing towards water, sewerage or rubbish collection, as they are targeted rates.

"Where you don't use the service, you don't pay for it."

However, Mr Strong does receive a number of benefits from his rates, including "democracy", he says.

His rates help to pay for statutory and regulatory work, which has "a general public good".

Rates also pay for land drainage, road repair and public parks and grounds used by the public.

There will always be, however, a certain percentage of a rates bill that covers goods and services a particular ratepayer may never actually use, Mr Kavers says.

But that is the same for any type of tax, including income tax, he says.

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An email from Paul asks whether ratepayers could pay their rates bills monthly, as that would make it easier to budget.

Rates payments for the Waitakere City Council can already be made, by direct credit, weekly, fortnightly, monthly or quarterly.

The arrangement is similar at Manukau City Council, where rates are payable by four, three-monthly instalments during the financial year, which runs from July to June. You can pay your rates in full (the total amount for the whole year) or you can pay them in the four quarterly instalments.

However, arrangements can be made with your bank to transfer your rates payments on a weekly, fortnightly or monthly basis.

The Auckland City Council's website shows payment options for easing the rates bill load.

You can give the council authority to make deductions from your bank account either fortnightly, monthly, bi-monthly or annually.

Rates can also be paid in quarterly instalments. Check with your local council for payment details.

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Gavin Cammell believes there would be a cost benefit in reducing the number of city councils in Auckland to one.

That would mean one mayor, one vision for all Auckland, and a lot less bureaucracy.

Other cities larger than Auckland get away with only one council, he says.

From time to time, local body leaders bring up the super city idea, but nothing has happened.

Auckland City councillor and former Labour Party MP Richard Northey last month succeeded in passing a resolution to work and advocate for one council. A Herald investigation in 2003 found the region had a vast network of 24 ratepayer-linked bodies with 5800 staff, 276 elected members and 24 chief executives (each earning up to $460,000).

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Tony Cooper wants to know, as he is helping to pay $60 million for new seats at Eden Park, if he will get tickets to the games. If not, he asks, why is he paying for seats for someone else to enjoy?

The short answer would appear to be "no seats". Councillor Vern Walsh says the economic benefits of the 2011 Rugby World Cup are conservatively estimated at $250 million for the Auckland region alone. Though it has not yet been confirmed how much the Auckland City Council will stump up for ground improvements, the council is "100 per cent committed to the Rugby World Cup and to the world-class legacy it will leave for the people of Auckland for many years after".