Rates

Rates: funding essential services in the community

The majority of the council’s activities to provide essential services, facilities and infrastructure are funded by the rates contribution made by Selwyn residents each year. This contribution is made up of a combination of general rate and targeted rates. Other sources of funding include fees and charges, development contributions, subsidies and grants.

Visit Your Rates to find out more about your current rates charges, including how your rates dollar is spent.

Visit Rating Types for more information on the different types of rates.

Find out whether you might be eligible for the Rebates Scheme

Rates for 2022/23 financial year

The average rates increase across the district is 6%.This is an average, and for individual ratepayers the actual change may be smaller or greater, depending on your location and the services provided.

This 6% average increase is slightly higher than the 4.9% average that we forecast in the Long-Term Plan (LTP) last year – but is in line with the current levels of inflation in New Zealand. It is also within the 6% limit set by the Council in its financial strategy.

When we prepared our LTP, inflation was still at low levels in New Zealand. In the past 12 months the Council – just like every other business and household – has faced significant increases in costs, as shown in the latest inflation indexes:

• Consumer Price Index: 5.9% year to December 2021
• Producer Price index (eg construction costs): 8.6% year to December 2021

Other significant cost pressures include

• increased fuel costs
• supply chain delays and cost increases
• impacts of the Russia-Ukraine conflict on fuel prices
• tight labour market.

These increased costs mean that we have to increase both operating expenditure (day to day service costs) and capital expenditure (cost of infrastructure and facilities) just to maintain our current levels of service.

The district’s continuing growth also puts pressure on our operations, and we are boosting our resources in areas like building and resource consents, cybersecurity and digital technology, and infrastructure support, to meet the demands of a larger population.

Revaluation

Individual changes in rates have also been affected by the district revaluation recently completed. An increase in the capital value of your property doesn’t mean your rates will increase by the same amount.

For most residential properties in Selwyn, only around a quarter of your rates bill is based on the capital value of a property, with the majority of the rates set based on a fixed amount per property.

If your capital value has increased by more than the average increase (33.7%) you can expect a slightly higher than average increase in your rates from 1 July 2022. If your property value increase was less than the average, you can expect a slightly lower than average increase in your rates.

Across most of Selwyn, many rural property owners will see a reduction in rates this year while our urban home owners have an increase. This is because urban property values generally grew faster than rural properties over the past three years.

Find out more about revaluation at www.selwyn.govt.nz/services/rates/rating-valuations

Rating examples

The tables below show examples of the rates changes for a sample of typical properties in a range of locations across the district. For each example we show the current capital value, the new capital value following revaluation (applies from 1 July 2022), the current year’s (2021/22) rates, the rates for 2022/23 and the amount of the increase both as a percentage and in dollars.

Our objectives for rates are to:

• Provide a fair and equitable rating system for the Selwyn District.
• Ensure that all ratepayers make an equitable and reasonable contribution to the cost of the available services.
• Ensure, as far as is practicable, that the distribution of costs amongst the various groups of ratepayers reflects the available services.
• Ensure that the rating system is flexible enough to address any special circumstances within separately defined areas.

Our Policy

Rates and charges will be charged as per relevant legislation, with consideration to any relevant High Court decisions. Charges will relate to our aims and objectives for an equitable rating base.

System

The rating system provides for the net funding requirement of the Council’s programme as stated in the annual budget.

Rating By Instalments

Rates are payable in four instalments. You may choose to pay the whole years rates in one sum, by the due date of the second instalment. Whole-year payments made after this date may incur additional penalty charges.

Additional Charges

Additional charges for late payment are set at the start of the rating year. They apply for the full rating year from 1 July to 30 June. For the 2021/22 rating year an additional charge of 5% will be added to each instalment which is not paid by its due date. A further penalty will be added to all unpaid rates as at 1 July.

Additional charges may be refunded in accordance with the following criteria:

• All applications must be in writing.
• All rates must be paid in full, as a general rule, before a refund is considered.
• Refunds will generally be given where late payment has arisen due to sickness, death, age or other acceptable genuine reasons.
• Removal of second and subsequent additional charges may happen where satisfactory arrangements are in place for regular payment of arrears.
• Refunds of penalties will be treated on a case by case basis.

Environment Canterbury

The Council acts as agent for the collection of rates for Environment Canterbury who determine their own rate levels and policies.