Please note, the numbers outlined below are residential averages by suburb and refer to the proposed 2017/18 Hutt City Council rates only.
All projects outlined in this year's Annual Plan Consultation Document are proposed to be funded by changing Council's Financial Strategy, and therefore the level of debt Council can sustain. The projects proposed will not be funded by increases in rates.
The increase in residential rates across the city is forecast at 4.4 per cent. This assumes that the community will support a freeze in the business rates differential which sees a slight reduction in residential rates (question nine of the Annual Plan consultation document).
The 4.4 per cent increase is forecast to include increases in inflation from the Local Government Cost Index (LGCI). LGCI is a measure which broadly reflects the items which a council typically spends money on, like maintenance and replacement of footpaths, roads, and pipelines. LGCI for 2017/18 will be 1.3 per cent, which is based on the actual LGCI for the year ending 30 June 2016. In addition Council committed to adding an additional one per cent to rates to fund rejuvenation projects across Lower Hutt, this was agreed to as part of the 2016/17 Annual Plan.
The additional 2.1 per cent is due to the variation of different types of property values across the city. In the past three years residential property values have on average appreciated in value by over 24 per cent, but business property values have increased in value by less than ten per cent over the same period.
This valuation change by property types has meant that the residential rates on average have increased by 4.4 per cent (one per cent rejuvenation, 1.3 per cent LGCI, and 2.1 per cent due to change in property value types).
Forecast rating valuation changes by suburb 2017-2018 (PDF 352Kb)