Rates FAQ

From August 10, Horizons Regional Council will be sending out its annual rates invoice. This year, regional ratepayers will receive a two page invoice which sets out in detail the various components of your rates and a brief explanation about what these pay for. There is also newsletter which will give you some detail about the benefits that Horizons rates provide to the community.

A breakdown of how rates are spent

Below is a breakdown of where every $100 of rates paid to Horizons is distributed…

  • $47 Keeping People Safe

  • $5 Getting People Places

  • $31 Managing the Environment

  • $17 More Work we do

Frequently asked questions

Q1: Can I get a Discount on my rates?

Q2: How will I know what the discount amount is?

Q3: Why am I paying a levy to AHB?

Q4: Why do I get a rates bill from my city/district council and Horizons?

Q5: Who gets a rates bill from Horizons?

Q6: What is the Horizons’ Region?

Q7: Who decides Horizons’ activities?

Q8: Why is Horizons’ General Rate based on Capital Value?

Q9: What does General Rate mean?

Q10: What is a Uniform Annual General Charge (UAGC)?

Q11: What is a Targeted Rate?

Q12: What is a Uniform Annual Charge (UAC)?

Q13: What is a river or drainage scheme rate? How are they calculated?

Q14: What is the Transport Rate?

Q15: What is meant by equalisation?

Q16: Revaluations

Q17: What is the Sustainable Land Use Initiative (SLUI)?

Q18: Has the SLUI rate gone up?

Q19: What is this Environmental Initiatives UAC that’s now on my rates bill? Why has it gone from $19.26 to $19.57?

Q20: I pay rates to the Lower Manawatu Scheme (LMS) . I have again been invoiced for an HF rate ($465.74) but my neighbours tell me they are not paying this rate. Why should I be paying if they are not?

Q21: I am confused – the name of my draining scheme has changed – Why?

Q22: I am confused who is paying for what in terms of possum control?

Q23: I am from Tangimoana and my rates have shot up – What’s the reason?

Q24: I live in the Rangitikei District and I want to understand what I am paying for to get rid of Old Mans Beard?

Q25: My rates bill has skyrocketed this year and it seems this is because the value of my property has increased. I thought Horizons sorted this out?

Q26: Why am I receiving a two page invoice? This is just a waste of money!

Q27: Why do you put out a rates newsletter? Isn’t it a waste of money?

Q28: Regional Parks - Where is Totara Reserve?

Q29: I don’t use buses why should I pay for them?

Q30: I don’t want my name and address showing on your rates information database. What can I do?

Q31: I can’t afford to pay my rates - what can I do?

Q32: What happens if I don’t pay?

Q33: I haven’t got a rates bill. Why?

Q34: Do I qualify for a rates remission?

 Q1: Can I get a Discount on my rates?

Yes from the rating year 2010-11   (01 July 2010 - 30 June 2011) :

If all rates owing (this includes arrears, penalty and current) are paid in full by the due date 24 September 2010, a discount of 3% will be allowed on the current rates.

Discount applies to the current year only.  The  2010 -11 discount does not apply to any rates still owed from previous years, therefore to receive the discount on your current rates the total balance needs to be paid in full before or on the due date. (24 September 2010).

 Q2: How will I know what the discount amount is?

The discount amount and the discounted balance will be clearly shown on the rates notice.

The discounted amount will be withdrawn after the due date and the discount will no longer be reflected on your property’s account.

 Q3: Why am I paying a levy to AHB?

Horizons collect a levy on behalf of the Animal Health Board, for their Tb Vector control programme.

All properties, 4 hectares or larger will be charged a special levy of $0.518 inclusive of GST per hectare.

Possums are a major carrier of tuberculosis=(Tb Vector), and the AHB programme complements Horizon’s existing Possum control programme.

 Q4: Why do I get a rates bill from my city/district council and Horizons?

Horizons is a completely separate organisation to your city/district council. City or district councils are responsible for community services in your area such as road maintenance, libraries, recreation areas and land use. Horizons is your regional council and manages the natural resources such as land and water across several city or district councils.

We also cover bus transport for all areas and emergency management. We have only been sending out rates directly to ratepayers since 2002. We made the change to direct rating because we believe that you need to know more about how your money is spent.

 Q5: Who gets a rates bill from Horizons?

Everyone who owns a property in the Horizons Region will get a rates invoice from Horizons.

 Q6: What is the Horizons’ Region?

Horizons encompasses Ruapehu, Rangitikei, Wanganui, Manawatu, Palmerston North, Tararua, Horowhenua also some parts of Taupo, Stratford and Waitomo districts.

 Q7: Who decides Horizons’ activities?

Horizons has certain responsibilities bestowed on it from central government.  We also actively consult with the community to ensure we represent the wishes of our ratepayer’s and utilise ratepayer’s money in ways the community will benefit the most from.

 Q8: Why is Horizons’ General Rate based on Capital Value?

General rates of regional councils may be made on either a land value or capital value basis.  We were directed to use the capital value system by the Local Government (Manawatu-Wanganui Region) Reorganisation Order 1989, which established the Council.  The Local Government Commission considered the different rating systems during the process of forming the Reorganisation Order and their decision was for the capital system.

 Q9: What does General Rate mean?

This rate funds a large range of activities from which every ratepayer may benefit.  It is based on a property’s capital value.

 Q10: What is a Uniform Annual General Charge (UAGC)?

The UAGC funds a large range of activities from which every ratepayer benefits equally.  It is a fixed rate that is applied to every rateable property in the region.  The UAGC this year is set at $35 per rateable property.

 Q11: What is a Targeted Rate?

Targeted rates are for a particular activity or project that benefits specific  ratepayers, for example pest plant and pest animal control.  These are also sometimes referred to as biodiversity rates.

 Q12: What is a Uniform Annual Charge (UAC)?

These are a fixed rate applied to ratepayers who benefit from a specific type of work.  It is not assessed on capital value like the general rate.  Uniform annual charges include SLUI ($33.91 per property throughout the Region, regional parks ($6.26) per Palmerston North and Manawatu property) and environmental initiatives ($19.57 on each rateable property throughout the Region).   These are also sometimes referred to as environmental rates.

 Q13: What is a river or drainage scheme rate? How are they calculated?

A scheme rate varies according to the benefit received from stopbanks, pump stations, drainage systems and other flood protection facilities.

If your property is at a high risk of flooding, then you pay a higher rate as you receive greater benefit from the protection.  If you live further from a waterway, you still pay for the benefits of flood-protected roads, shops and services, but at a lower rate.

 Q14: What is the Transport Rate?

Everyone pays a transport rate that goes towards land transport planning and road safety.  Ratepayers who have public transport and Total Mobility services available in their area contribute to this through the transport rate.  This rate is different depending on whether your property is urban or rural.  Because urban properties receive most benefit from passenger services, this is reflected in their rates.

 Q15: What is meant by equalisation?

District and city councils revalue at different times across the Region.  These revaluations affect the capital value of properties and, hence how much general rate they pay.  Each year Horizons obtains an equalisation certificate from Quotable Value that shows the value of all Districts as at the last revaluation date.  This information is used to equally spread the rates allocated by capital value among the districts.

 Q16: Revaluations

All properties in the Region have a revalue on a three-yearly cycle. If your property has had a revalue this year it will mean the value on which your property is rated will have changed and this will have affected the General Rate as properties do not uniformly move in value.

 Q17: What is the Sustainable Land Use Initiative (SLUI)?

Our Region’s problems with hill country erosion were sorely exposed during the February 2004 storm event. In response, representatives from our Region’s communities and stakeholder organisations have joined together and formed the Sustainable Land Use Initiative (SLUI), which seeks to implement whole farm business plans specifically tailored to manage each area of highly erodible land. The aim is to help insure against having to recover from the effects of massive-scale hill erosion in the future. This assists in preventing the silting up of rivers downstream and thus helping to reduce flooding.

 Q18: Has the SLUI rate gone up?

In December 2007 Central Government agreed to help fund our Sustainable Land Use Initiative (SLUI) to prevent hill country erosion.  As a result we have adjusted amounts and funding splits to reflect the funding agreement for the costs to be equally shared between landowners, ourselves and Central Government.  We are increasing our SLUI Uniform Annual Charge (UAC) from $27.83 to $33.91 for 2010 11.

 Q19: What is this Environmental Initiatives UAC that’s now on my rates bill? Why has it gone from $19.26 to $19.57?

As environmental initiatives tend to benefit all members of the community equally, Council has decided to fund more of these initiatives by way of a UAC on each property.  Previously these items were funded from the general rate.

 Q20: I pay rates to the Lower Manawatu Scheme (LMS) . I have again been invoiced for an HF rate ($465.74) but my neighbours tell me they are not paying this rate. Why should I be paying if they are not?

 

Since the new LMS rating system was adopted in June 2009, Council has received a number of submissions in respect of the fairness of application of the HF category rate.  Through the 2010/11 Annual Plan process, Council adopted some changes which resulted in a number of properties being removed from the HF category. Essentially these were: 
All those rural houses that receive flood protection from the LMS but where the depth of inundation in a 100-year flood would be less than 50mm have been exempted from the HF rate.
The Feilding urban flood protection rating boundary has been modified to include an area immediately to the North of Feilding that is presently being developed as an extension to the urban area. By being shifted into the urban category, houses in that extension area will no longer pay the HF rate  but will now pay the lesser Feilding urban (FG) rate. 
The Palmerston North urban flood protection rating boundary has been modified to include an area to the West of the City between Longburn- Rongotea/Shiriiffs Road and the Mangaone Stream and between No. 1 Line and the Manawatu River. That area is rapidly developing as an extension to the present City urban area. By being shifted into the urban category, houses in that developing area will no longer pay the HF rate but will now pay the lesser Palmerston North urban (PN) rate.
All other rural houses (722 of them) will continue to be rated in the HF category.

Since the new LMS rating system was adopted in June 2009, Council has received a number of submissions in respect of the fairness of application of the HF category rate. Through the 2010/11 Annual Plan process, Council adopted some changes which resulted in a number of properties being removed from the HF category. Essentially these were: 

 

  1. All those rural houses that receive flood protection from the LMS but where the depth of inundation in a 100-year flood would be less than 50mm have been exempted from the HF rate.
  2.  The Feilding urban flood protection rating boundary has been modified to include an area immediately to the North of Feilding that is presently being developed as an extension to the urban area. By being shifted into the urban category, houses in that extension area will no longer pay the HF rate but will now pay the lesser Feilding urban (FG) rate.
  3.  The Palmerston North urban flood protection rating boundary has been modified to include an area to the West of the City between Longburn- Rongotea/Shiriiffs Road and the Mangaone Stream and between No. 1 Line and the Manawatu River. That area is rapidly developing as an extension to the present City urban area. By being shifted into the urban category, houses in that developing area will no longer pay the HF rate but will now pay the lesser Palmerston North urban (PN) rate.

All other rural houses (722 of them) will continue to be rated in the HF category.

 Q21: I am confused – the name of my draining scheme has changed – Why?

While in the past we broke down your rate bill by who benefits from a scheme, we did not give detailed names for each line.  We have now renamed each line to spell out the benefits that you and others in the community receive from this work.  It’s designed to give you more information.

We are detailing  exactly what we are doing and how we are charging you.  You will also note on the invoice the letters H – M – L .  This refers to the degree of benefit that you are receiving from the scheme.  H– high,  M – medium and L – low.

 Q22: I am confused who is paying for what in terms of possum control?

The situation in relation to possum control is as follows:

On this year’s invoice we have split this rate into two lines called ‘AHB TB Vector Funding’ and ‘Pest Animal Management’ to provide you clarity for what you are paying for.

The Animal Health Board (AHB)  have the specific mandate to eradicate Bovine Tb which is spread mainly by possums.  We collect a levy on their behalf.

However, Horizons will still carry out possum control activities in rural areas to maintain the gains made by the Animal Health Board (AHB).  In addition, we will also focus on the problems that possums pose to the environment – be it rural or urban.   In other words, the two programmes complement each other.  That’s why everyone in the Region makes a contribution from their rates to possum control, either by the  per hectare rate or the general rate.

 Q23: I am from Tangimoana and my rates have shot up – What’s the reason?

This is because Council has placed a $101.62 Uniform Annual Charge on all residents to pay for flood protection works in the area. As well there is a capital value rate of $0.0006860/$CV (e.g. $68.60 per $100,000) of rateable value applied to fund this additional benefit.

 Q24: I live in the Rangitikei District and I want to understand what I am paying for to get rid of Old Mans Beard?

Old Mans Beard has been identified as a particular problem by the local community and as result a ‘Differentiated Uniform Annual Charge’ of $34.54 has been applied to properties over 4 hectares in size and a $4.86 charge for those under 4 hectare’s.  In areas where old mans beard has become a problem we aim to stop it spreading further.  Outside these areas we will try to eradicate it whenever it appears.

 Q25: My rates bill has skyrocketed this year and it seems this is because the value of my property has increased. I thought Horizons sorted this out?

Horizons has a system which deals with most rises and falls in property values and this works. However, in a few cases where property prices rise significantly more than other properties, yes your rates will go up. The Council has no say in this matter and any concerns you have need to be taken up with Quotable Value – the government agency that sets the rateable value of your property.

 Q26: Why am I receiving a two page invoice? This is just a waste of money!

The purpose of the two page invoice is to give you more information about what services and benefits that you receive for your rates. In the past you have received very little basic information and there have been complaints about this, so the two page invoice is in direct response to requests from other ratepayers.

 Q27: Why do you put out a rates newsletter? Isn’t it a waste of money?

Horizons believes that it is important that you have a clear understanding of what your rates pay for and the benefits that you receive, and we’ve had feedback that more communication is desired. Every council in the country does this and it is part of our philosophy of being open and up front about what we do. Also, the material used is a special type of sustainable paper.

 Q28: Regional Parks - Where is Totara Reserve?

Totara Reserve is based in Manawatu district and sits in the foothills of the Ruahine ranges in the Pohangina Valley. It is used by many people as a recreational area and is a valuable piece of native bush in Horizons’ region. We work with the Manawatu District Council to enhance its forest and wildlife; and improve camping facilities, tracks and signage.

 Q29: I don’t use buses why should I pay for them?

Having a bus service available gives people an option for transport and means fewer cars on the road and an environmentally friendly transport solution. It can also be a cost effective way of getting to and from town, work or between towns.

 Q30: I don’t want my name and address showing on your rates information database. What can I do?

We will send you a form to complete so we can remove your details. This needs to be applied for each year. Please note that no names or postal address show on the RID which is the rates data base on our website. You can also download a form from this website www.horizons.govt.nz under Rates.

 Q31: I can’t afford to pay my rates - what can I do?

If you are having difficulty paying your rates we may be able to enter into a payment arrangement with you.  Please contact the Horizons’ rates office for all payment arrangements. If your request for a payment arrangement is successful and the payments do not default then a remission of penalty will be imposed.

Please contact  0508 800 800.

Automatic payments: A form can be sent to you by Horizons rates office, for automatic payments.  You then forward the completed form to your bank.  This is a flexible way to pay.  All requests for Automatic payment forms must be forwarded to the Horizons’ rates office.  This is so the payments can be calculated over the full year as automatic payments must be completed and paid in full by the end of the financial year (eg. end June of the current rating year).   Automatic payment forms are only available from this office.  

Direct Debit: You may pay by  Direct  Debit  which offers annual, quarterly and monthly payment options. A form can be sent to you by our Customer Service Team or you can download the Direct Debit form from our website:  www.horizons.govt.nz

 Q32: What happens if I don’t pay?

All property owners are required by law to pay rates. The final day for payment for all rates is the 24 September 2010. If rates are not paid in full, or an arrangement is not made with Horizons, penalties will be charged in early October. Please refer the back of your rate notice for more information.

 Q33: I haven’t got a rates bill. Why?

If you have recently bought or sold the property the required details may not have been forwarded to Horizons.  If you have changed your postal address and forgotten to tell us please do so.  We will then issue you with a copy or a new rates notice.

 Q34: Do I qualify for a rates remission?

Remissions allow you to have a reduction in your rates:

1. A non–profit organisation, sporting or community group can request a remission on their rates.  This must be applied for each year.

2. Contiguous properties (having common boundaries) that are owned by the same person and are used as a single unit may be excluded from paying Uniform Annual General Charges and Uniform Targeted Rates.  Properties carrying a dwelling receive full charges.

3.Penalty remissions are only granted in extreme circumstances,a mostly if an error has been made.  It is the owner’s responsibility to notify us of any change of address, this information does not come to us from the City or District Council.

4. Rates Rebate The Government operates a scheme to assist low income ratepayers with payment of rates.  You may obtain the  application form from Horizons or your local district or city council.

The application must be sent to your district or city council though as Horizons do not administer the rebate scheme and none of the rebate amount is forwarded to Horizons, for more information visit www.ratesrebates.govt.nz

Forms can be posted by this office or are available from this website under Rates.