How Council uses your rates

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  • How Council uses your rates

Rates generate around half of Council’s income and are used to provide residents with a wide range of essential services and facilities.

When you get your rates account it is divided into several sections. Nelson’s rating system continues to be based on land value, and the general rate is set at a charge per dollar of rateable value for each rating category.

Rates as calculated as a percentage in 2011/12 as compared to prior year
Rate type Percentage
General rate and Uniform Annual General Charge (UAGC)
8.16%
Stormwater charge
3.53%
Wastewater charge
- 6.88%
Water charges
3.53%

General Rate

The general rate this year is 0.56025 cents in the land value dollar, including GST, compared with the previous year’s rate of 0.49475 cents.

As a comparison, a residential property with a land value of $177,000 in 2010 would have paid total rates of $1890.90 in 2010/11. This same property would pay $1925.80 total rates in the 2011/12 rating year.

Commercial rates

Council has a policy that commercial rates are set at a level to collect 25% of total rates. This will result in commercial properties paying $12,469,362 in rates this year compared to $11,529,314 last year.

Uniform Annual General Charge (UAGC)

The UAGC covers charges for services which most residents benefit from irrespective of property value.

This year’s charge is $340.80, which is $15.00 more than last year’s charge of $325.80. It is 15% of rates, within the 30% legislated limit.

Stormwater

Stormwater is a separate targeted rate of $240.30, which is $6.70 more than last year’s charge of $233.60.

Wastewater

Another separate targeted rate is levied on all units connected to Council’s wastewater disposal system.

The residential charge will be $353.10 this year, compared to $384.80 last year.

Commercial properties also pay wastewater charges based on Council’s Tradewaste Bylaw.

These charges are explained in full in the draft Annual Plan.

Water

Water supply charges are a targeted rate based on a fixed daily charge payable by all ratepayers with a water meter. Charges are calculated to cover the costs of the Council water supply system.

The minimum annual charge is $187.17 including GST and there is no free allowance. The cost per cubic metre of water for most users will be $1.86.

Rates payments

Council charges rates in four equal quarterly instalments.

There is a discount if the full year’s rates are paid at the first instalment.

A penalty of 10% is added to each unpaid instalment including water charges. Rates that remain unpaid the following year have a further 10% penalty added on 30 June and 31 December.