For the first time in more than a decade the rating roll growth in the Queenstown Lakes District Council has dipped below forecast, QLDC deputy chief executive and general manager finance Stewart Burns said.

“The actual growth in the rating roll was 1.8%, which is slightly less than the forecast 3.2% and has had a minor impact on the final setting of the rates for the 2010/11 year,” Mr Burns said.

The rates cannot be formally set until the final capital values for the district are known as of 1 July 2010. “We then undertake a large arithmetic exercise based on the capital values and the number of rateable properties. This has resulted in an average increase slightly above forecast.’ Mr. Burns said.

The increase of 9.1% is 0.6% higher than the increase signalled in the 10-Year-Plan and just over 1% higher than the increase consulted on through the Draft Annual Plan, which flagged that the figure was “subject to growth”.

The effect on individual properties would vary according to a number of factors including location, services received, valuation and property usage. Most residential property shows an increase of around 0.5 to 1.2% more than the position shown in the Draft Annual Plan; in dollar terms this is a difference in the range of $2.83 to $21.11 p.a. (excl GST).

“Clearly we are seeing some continuing fallout from the recession, we will be closely monitoring our growth forecasts for next year,’ Mr Burns said.

The Council will be asked to set the rates at its meeting on Tuesday (17 August).

ENDS
>> Read the agenda item about setting the rates

For further information please contact Ian Stewart 03 4410499.

By: Rebecca