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Home / Rotorua Daily Post

Bay of Plenty Regional Council to save millions for changing 30-year tradition

By Alisha Evans
Rotorua Daily Post·
8 Mar, 2022 08:49 PM4 mins to read

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The pamphlet that raised concerns for some ratepayers. Photo / John Borren

The pamphlet that raised concerns for some ratepayers. Photo / John Borren

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Bay of Plenty Regional Council Toi Moana will pay $1.8 million to district and city councils this year, for collecting rates on its behalf.

It will, however, be the last year this occurs, with the change saving the council up to $6m.

Since 1989 the regional council had contracted rates collection to the regions' seven councils, Whakatāne, Ōpōtiki, Kawerau, Western Bay of Plenty, Tauranga, Rotorua and Taupō.

During this time Toi Moana paid between 2 and 5 per cent in commission per year, to each of the councils. Toi Moana special projects manager Annabel Chappell said the costs paid were unique to each council and were a combination of a commission, as a percentage of rates collected, and associated administrative costs.

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In 2020 regional council decided change this and collect their own rates from the region's 150,000 rating units, starting from the 2022/2023 financial year.

Chappell said this was communicated to councils at the time. There were four drivers for the change, including increasing public awareness of the work Toi Moana did, differences in rates postponement and remission policies between councils, having more control over the "critical revenue source" and cost efficiencies.

"For many years having the district and city councils collect the regional council's rates worked well for both parties," Chappell said.

"In recent years the mahi required of the regional council has expanded and circumstances have changed to an extent where it is now more appropriate for the regional council to collect its own rates."

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Accompanying rates bills recently sent to Tauranga City and Western Bay of Plenty ratepayers, was a pamphlet from Toi Moana telling people to "Get ready for change".

It outlined the change of how the rates were to be collected, why it would occur and what to expect with the next rates bill. The pamphlets for the other five councils would go out in April and May.

It outlined the change in how the rates were to be collected, why it would occur and what to expect with the next rates bill.

The leaflet raised questions for some ratepayers and one contacted Local Democracy Reporting to express their concern about additional costs and the administration required to change the system.

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Chappell said the cost of the new technology system, that had been implemented to enable regional council to collect its own rates, was budgeted at $395,000.

"Due to the initial set up costs, for the year there will be a slight increase in costs than would have been paid in commission to the other councils," she said.

"From the second year there would be an annual cost saving, resulting in an overall cost reduction of approximately $6 million over the long term plan."

As for the administrative process, Chappell said Toi Moana was working with the seven councils to transfer rates data that they had been managing, into the new regional council rates collection system.

"We are also working with the other councils to develop processes that help make things easy for customers."

The ratepayer, who did not want to be named, said the information around cost should have been communicated to people to provide "greater understanding and less suspicion".

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Chappell said, "We're planning an extensive campaign to run in the lead up to this next year so that all ratepayers are aware of the change, and we'll make sure it's available via many different methods and channels".

She said many ratepayers did not realise that a portion of their rates was paid to the regional council.

"Collecting our own rates will further increase visibility of our services, and result in more community connections, feedback, and engagement."

The separate regional council rates bill would be due in October 2022.

- Local Democracy Reporting is Public Interest Journalism funded through NZ On Air

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