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Out of kilter – the city council’s “re-balancing” of the rates

Rates+Rebalancing [1]
by Keith Johnson
Although it has been a bit like pulling teeth with a garlic crusher, I have finally managed to obtain a decent series of figures from the Wellington City Council [by way of an Official Information Request] on the impact of its rates rebalancing policy on residential ratepayers.

It will take me some time to fully analyse the figures but I’ll give you a preview.

In 2001-02, the Wellington City Council recorded revenues of $241.7 million with $63.9 million coming from Business Rating [26.4%] and $61.1 million [25.2%] coming from Household Rating. At this time $112.0 million [46.7%] was drawn from ‘Other Sources’ [i.e. fees; profits from council controlled organizations; and central government grants]. The only other strand of income was the Downtown Levy which raised $3.8 million [1.6%].

Projections for 2021-22 forecast revenues of $503.0 million [a doubling over 20 years]. Of the projected total, $180.2 million [35.8%] will be drawn from Household Rating and $129.4 million [25.7%] will be drawn from Business Rating. The additional sources of revenue are expected to consist of $13.4 million [2.7%] from the Downtown Levy; $5.0 million [1%] from Development Contributions and $175 million [34.8%] from ‘Other Sources’.

The expected relative shrinkage of the Other Sources contribution is worth noting.

In 2001-02, the average household ratepayer paid $1,053 per year. This rose to $1,884 in 2012-13. By 2021-22, the figure is likely to stand at $2,250 for per household rate payer.

I leave it to you to decide how far you think this is fair?

For a remedy, see: http://kjohnsonnz.blogspot.co.nz/2013/03/keith-johnson-to-stand-for-wellington.html [2]