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
• $6 Getting People Places
• $31 Managing the Environment
• $16 More Work we do

Frequently asked questions about rates

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

Q: Who gets a rates bill from Horizons?

Q: Where is the Horizons Region?

Q: Who decides Horizons’ activities?

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

Q: What does General Rate mean?

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

Q: What is a Targeted Rate?

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

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

Q: What is the Transport Rate?

Q: What is meant by equalisation?

Q: What is Sustainable Land Use Initiative (SLUI)

Q: Why has the SLUI rate gone up.

Q: I note that my UAGC this year has dropped from $42 to $34 – why ?

Q: What is this Environmental Initiatives UAC that’s now on my rates bill? Why has it gone from $10.86 to $19.26?

Q: I am part of the Lower Manawatu Scheme and suddenly this year my rates have gone through the roof. Why?

Q: I am confused – the name of my drainage scheme has changed. Why?

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

Q: I am confused – the name of my drainage scheme has changed. Why?

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

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

Q: I live in the Rangitikei District and I want to understand what I am paying for to get rid of Old Man’s Beard?

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

Q: With Horizons’ rates going up, as well as my local council, I am unable to pay them all.

Q: Why am I receiving a two page invoice – this is just a waste of money!

Q: This rates newsletter is a pretty glossy document – it’s a waste of money!

Q: Regional Parks - Where is Totara Reserve?

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

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

Q: I can’t afford to pay - what can I do?

Q: What happens if I don’t pay?

Q: I haven’t got a rates bill. Why?

A: 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 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.

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

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

A: 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 ratepayers and utilise ratepayer’s money in ways that will benefit the community the most.

A: 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.

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

A: 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 $34 per rateable property.

A: Targeted rates are for a particular activity or project that benefits an identifiable group of ratepayers, for example pest plant and pest animal control

A: This is 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 ($27.83 per property throughout the region, regional parks ($6.02 per Palmerston North and Manawatu property) and environmental initiatives ($19.26 on each rateable property throughout the region).

A: 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.

A: 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, they pay about 90% of the funding required.

A: 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 equitably divide the rates allocated by capital value among the districts. If we did not do anything about these timing differences Councils who had recently revalued would be unfairly penalised.

o Revaluations

All properties in the region are revalued on a three-yearly cycle. If your property has been revalued 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.

A: 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.

A: 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 $19.98 to $27.83 for 2009 10

A: This is good news for people who have properties with lower capital value because they will pay less by way of the UAGC and less by virtue of the fact that other activities will be funded through the general rate.

A: 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.

A: 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 in simple, practical terms 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 - being high, M – medium and L – low.

A: This is because Council has placed a $104.08 Uniform Annual Charge on all residents to pay for flood protection works in the area. As well there has been $115 per $100,000 of rateable value applied to fund this additional benefit.

A: The situation in relation to possum control is as follows:

A: Old Man’s Beard has been identified as a particular problem by the local community and as result a ‘Differentiated Uniform Annual Charge’ of $34.83 has been applied to properties over 4 hectares in size and a $4.77 charge for those under 4 hectares.

A: Horizons has a system which deals with most rises and falls in property values, and it works. However, in a very 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.

A: Unfortunately we can do nothing about the rates of your local council. We are separate entities. If there is any aspect of the Horizons rate increase that is of concern please contact us to talk it through.

A: The purpose of the two page invoice is to give you more information about what services and benefits that your 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.

A: Horizons believes that it is important that you have a clear understanding of what your rates pay for and the benefits that you receive. Every council in the country does this and it is part of our philosophy of being open and up front about what we do.

A: 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 the Horizons Region.

A: 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.

A: 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 www.horizons.govt.nz

A: 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. Direct Debit: You may pay by Direct Debit which offers annual, quarterly and monthly payment options. A small administration fee is charged on the quarterly and monthly Direct Debits. A form can be sent to you by Horizons rates office or you can download the Direct Debit form from our website: www.horizons.govt.nz 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 more flexible way to pay. All enquires 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 2010). The call centre does not have these forms and they are not on our website.

A: All property owners are required by law to pay rates. The final date for payment for all rates is 25 September 2009. 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.

A: 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.

A: 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, 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. If you have a problem, visit the Horizons website or call into an Horizons service centre or your local council to pick up a rate rebate form. But be aware that the rebate will eventually come through your local authority and not Horizons. That’s how the system operates.

These can also be posted to the customer on request with a reply paid envelope.

Forms to apply for rates remissions and contiguous status are available from our website: www.horizons.govt.nz

Please note the last official day for payment is 25 September 2009.