DRAFT LTP book.indb - Hurunui District Council

www.hurunui.govt.nzRevenue and Financing PolicyIntroductionThis policy is about Council services and who pays for them, andis required under Section 102 (4) of the Local Government Act2002. Sections 103 and 101(3) of this act require the Council toidentify for each Council service:(i)(ii)(iii)(iv)(v)the community outcomes to which the serviceprimarily contributes;the distribution of benefi ts between the Districtas a whole, any identifi able part of the District,and individuals;the period in or over which those benefi ts areexpected to occur;the extent to which the actions or inaction ofparticular individuals or a group contribute tothe need to undertake the service; andthe costs and benefi ts, including consequencesfor transparency and accountability, of fundingthe service distinctly from other services.There is also a requirement to consider the overall impact ofany allocation for revenue needs on the current and futuresocial, economic, environmental, and cultural wellbeing of thecommunity.Costs for each service are collected unless the Council believesthat to do so would not be fair or not be in the interest ofresidents and ratepayers or is in confl ict with Council policy. Asan elected representative body, the Council has the responsibilityto make the fi nal decision.The following section of this policy is an explanation of thepolicy and terms used.Capital Value:The value expected to be realised at the time of valuation ifoffered for sale on such reasonable terms and conditions as abona fi de seller might be expected to require.Development Contributions:Drainage Rate:Targeted Rate on a defi ned area benefi ting from a classifi eddrainage scheme.Lot:A rateable property (lots can be combined). A lot is a legal entity.Targeted Rate:Is a rate within a ward or other defi ned area and may be basedon cents per dollar of capital value of every property or a fi xedamount per rating unit (known for the purposes of this policyas a “Uniform Annual Charge”, UAC). Money is spent in thatarea only.UAC:Uniform Annual Charge. Within the context of this policy,this is a Targeted Rate for a set dollar amount collected foreach rateable property (or each separately used or inhabitedpart of a property) in the District as a whole or within partof the District for a specifi c Council service (e.g. water supply,sewerage, reserves).UAGC:Uniform Annual General Charge. This is a set dollar amountwhich is collected for each rateable property or each separatelyused or inhabited part of a property in the District, irrespectiveof the value of the property, to cover the combined costs ofvarious 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 ReviewThe service by service reviewes are detailed on the followingpages.Charges on future lots or units of demand to fund the growthportion of capital expenditure.District Rate:District wide collection of revenue based on a set number ofcents per dollar of the Capital Value of every property, or auniform annual general charge (UAGC).230