Long Term Community Plan 2012-2022 - Hurunui District Council

www.hurunui.govt.nz
Revenue and Financing Policy
Introduction
This policy is about Council services and who pays for them, and
is required under Section 102 (4) of the Local Government Act
2002. Sections 103 and 101(3) of this act require the Council to
identify for each Council service:
Drainage Rate:
Targeted Rate on a defined area benefiting from a classified
drainage scheme.
Lot:
(i)
(ii)
(iii)
(iv)
the community outcomes to which the service
primarily contributes;
the distribution of benefits between the District
as a whole, any identifiable part of the District,
and individuals;
the period in or over which those benefits are
expected to occur;
the extent to which the actions or inaction of
particular individuals or a group contribute to
the need to undertake the service; and
A rateable property (lots can be combined). A lot is a legal entity.
Targeted Rate:
Is a rate within a ward or other defined area and may be based
on cents per dollar of capital value of every property or a fixed
amount per rating unit (known for the purposes of this policy
as a “Uniform Annual Charge”, UAC). Money is spent in that
area only.
UAC:
(v)
the costs and benefits, including consequences
for transparency and accountability, of funding
the service distinctly from other services.
There is also a requirement to consider the overall impact of
any allocation for revenue needs on the current and future
social, economic, environmental, and cultural wellbeing of the
community.
Costs for each service are collected unless the Council believes
that to do so would not be fair or not be in the interest of
residents and ratepayers or is in conflict with Council policy. As
an elected representative body, the Council has the responsibility
to make the final decision.
The following section of this policy is an explanation of the
policy and terms used.
Capital Value:
The value expected to be realised at the time of valuation if
offered for sale on such reasonable terms and conditions as a
bona fide seller might be expected to require.
Development Contributions:
Charges on future lots or units of demand to fund the growth
portion of capital expenditure.
District Rate:
Uniform Annual Charge. Within the context of this policy,
this is a Targeted Rate for a set dollar amount collected for
each rateable property (or each separately used or inhabited
part of a property) in the District as a whole or within part
of the District for a specific Council service (e.g. water supply,
sewerage, reserves).
UAGC:
Uniform Annual General Charge. This is a set dollar amount
which is collected for each rateable property or each separately
used or inhabited part of a property in the District, irrespective
of the value of the property, to cover the combined costs of
various Council services.
User Charges:
Charges collected from individuals at the time service is used.
Utilities:
Combination of water, wastewater and refuse services.
Service by Service Review
The service by service reviews are detailed on the following
pages.
District wide collection of revenue based on a set number of
cents per dollar of the Capital Value of every property, or a
uniform annual general charge (UAGC).
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