6.3.3 Targeted rates

Targeted rates may be used to fund specific council activities. Targeted rates are mainly used where there is a clearly identifiable group benefiting from a specific council activity. Targeted rates will apply to properties that receive certain services, or which are located in specified areas. The council does not have a lump sum contribution policy and will not invite lump sum contributions for any targeted rate.

 
Waste management targeted rate

Background

The level of waste management services provided, the cost of providing those services and how they are funded varies across Auckland according to the policies of the former councils. The former councils used differing proportions of user charges, targeted rates and general rates to fund waste management services. In many cases waste management services are supplied to the council under contract by third party companies. The length of time that these contracts still have to run varies.

The council has developed a new solid waste strategy to be fully implemented by 2016. The strategy can be found in the Auckland Waste Management and Minimisation plan on the council’s website. Until the regional solid waste strategy is implemented, the council will continue with the service levels provided within former council boundaries. The public good component of the service cost is funded through the general rate. This proportion differs in each of the former council areas depending on the services provided. Where user charges applied formerly, these will continue. The balance of funding required to pay for the cost of providing services within each former council boundary will be met by targeted rates. These will differ for each former council area, depending on the level of service provided and the proportion of cost recovery through user charges.

Activities to be funded

The targeted rate for waste management is used to fund refuse collection and disposal services (including the inorganic refuse collection), refuse recycling and waste transfer stations.

How the rate will be assessed

For properties outside of the district of the former Auckland City Council where a service is provided or available, the targeted rate for waste management will be charged on a per separately used or inhabited part (SUIP) basis. See the UAGC section above for the council’s definition of a SUIP. Properties which have an approved alternative service will not be charged a targeted rate for waste management.

For properties within the district of the former Auckland City Council, the targeted rate for waste management will be charged based of the number and type of services supplied to each rating unit. For rating units made up of one separately used or inhabited part, the council will provide one refuse collection service. For rating units made up of more than one separately used or inhabited part, the council will provide the same service as was provided at 1 July 2012, unless otherwise informed by the owner of the rating unit (that is, at least one refuse collection service, and up to a maximum of one refuse collection service per separately used or inhabited part). If additional recycling services are supplied the additional recycling service rate will apply. Properties which have an approved alternative service will be charged the waste service charge that excludes the approved alternative service or services.

Table 6.3.3.1 Waste management rates

Former council district

Waste management targeted rate

Estimated amount of targeted rate ($ including GST)

Charging Basis

Auckland City Waste management – full service 227.97 Per available service
Auckland City Waste management where refuse opt out applies 75.27 Per available service
Auckland City Waste management – where recycling opt out applies 173.78 Per available service
Auckland City Waste management where both refuse and recycling opt out applies 21.08 Per available service
Auckland City Waste management additional recycling charge 54.19 Per available service
Franklin District Waste management – refuse collection 58.59 Per SUIP
Franklin District (1) Waste management – recycling collection 69.82 Per SUIP
Manukau City Waste management 214.98 Per SUIP
North Shore City Waste management 59.16 Per SUIP
Papakura District Waste management 117.39 Per SUIP
Rodney District Waste management 89.34 Per SUIP
Waitākere City Waste management 19.69 Per SUIP

Note:

  1. The Franklin District recycling targeted rate applies to rating units in the Pukekohe, Waiuku and Clarks Beach / Waiau Pa collection areas.

The targeted rate for refuse collection will generate revenue of about $63.7 million (excluding GST) in 2012/2013. In the future, the level of this targeted rate may be adjusted to reflect changes in the costs of providing refuse collection and disposal services.

 
City Centre targeted rate

Background

The former Auckland City Council adopted a CBD targeted rate in 2004/2005 to fund the development and revitalisation of the city centre (in-line with former Auckland City Council’s CBD into the future strategy). The planned expenditure under this programme was to be completed by 2015/2016. The targeted rate would reduce to a residual amount to cover the additional depreciation and operational expenditure generated by the projects in the city centre development programme. The rate applied to all ratepayers in the City Centre area.

Activities to be funded

The City Centre redevelopment programme (formerly the CBD development programme) aims to enhance the city centre as a place to work, live, visit and do business. It achieves this by providing a high-quality urban environment, promoting the competitive advantages of the city centre as a business location, and promoting the city centre as a place for high-quality education, research and development. The programme intends to reinforce and promote the city centre as a centre for arts and culture, with a unique identity as the heart and soul of Auckland.

This targeted rate also funds the additional depreciation and operational expenditure for the higher quality assets generated by the projects funded by the city centre targeted rate.

The planned expenditure under this programme is to be completed by 2015/2016, although this may occur earlier. The targeted rate would then reduce in 2016/2017 to a residual amount, to cover the additional depreciation and operational expenditure generated by the projects in the City Centre redevelopment programme.

Land liable for the rate

From 2012/2013, this targeted rate will apply to all business land, as it is defined for rating purposes, in the city centre. You can view a map of the city centre area at  www.aucklandcouncil.govt.nz/rates, or at any Auckland Council library or service centre.

How the rate will be assessed

The targeted rate will be assessed on capital value on the business land in the city centre area. The rate in the dollar for 2012/2013 is 0.00213664 (including GST). This will produce about $20.1 million (excluding GST) in revenue in 2012/2013. This figure is based on the level of revenue from the city centre targeted rate (formerly CBD targeted rate) for 2012/2013 by the former Auckland City Council.
 

Business Improvement District targeted rate

Background

Business Improvement District (BID) programmes are areas within Auckland where local businesses have agreed to work together, with support from the council, to improve their business environment and attract new businesses and customers. The funding for these initiatives comes from a BID targeted rate, which the businesses within a set boundary have voted and agreed to pay to fund BID projects and activities.

Activities to be funded

The main objectives of the BID programmes are to enhance the physical environment, promote business attraction, retention and development, and increase employment and local business investment in BID areas. The programmes may also involve community development, and are intended to identify and reinforce the unique identity of a place and to promote that identity as part of its development.

Land liable for the rate

The BID targeted rates will be applied to non-residential land in defined areas in commercial centres outlined in the following table. For maps of the areas where the BID rates will apply, go to  www.aucklandcouncil.govt.nz/rates.

How liability will be assessed

The BID targeted rate will be assessed using a fixed rate and value-based rate on the capital value of the property. Each BID area can decide to have a fixed rate of between $0 to $250 (including GST) per property. The value-based component of the BID rate for each area will be applied as a rate in the dollar. There will be a different rate in the dollar for each BID programme. The budgets and rates for each BID area for 2012/2013 are shown in table 6.3.3.2 below.

Table 6.3.3.2 Business improvement districts budgets and rates in the dollar
BID/ Mainstreet area Budget for 2012/2013 (excluding GST) ($) Amount to be funded by fixed charge for 2012/13 (excluding GST) ($) Fixed rate per property for 2012/2013 (including GST) ($) Amount to be funded by property value rate based on the capital value of the property for 2012/2013
(excluding GST) ($)
Rate in the dollar for 2012/2013 to be multiplied by the capital value of the property
(including GST) ($)
Avondale 100,000 0.00 0.00 100,000 0.0018167
Birkenhead 150,000 0.00 0.00 150,000 0.00118444
Blockhouse Bay 43,284 0.00 0.00 43,284 0.00284113
Browns Bay 110,000 0.00 0.00 110,000 0.00078645
Dominion Road 117,500 0.00 0.00 117,500 0.00167802
Eden Terrace 150,000 0.00 0.00 150,000 0.00028444
Ellerslie 111,650 0.00 0.00 111,650 0.00315706
Glen Eden 45,000 0.00 0.00 45,000 0.00136569
Glen Innes 166,248 0.00 0.00 166,248 0.00276607
Greater East Tamaki 500,000 306,921.70 195.00 193,078 0.00006391
Heart of the City 3,708,100 0.00 0.00 3,708,100 0.00111971
Howick 127,626 0.00 0.00 127,626 0.00128368
Hunters Corner 90,791 0.00 0.00 90,791 0.00084245
Karangahape Road 325,500 0.00 0.00 325,500 0.00107874
Kingsland 200,000 0.00 0.00 200,000 0.0009075
Mahunga Drive 68,250 0.00 0.00 68,250 0.00063202
Mairangi Bay 42,000 4,782.58 250.00 37,217 0.00127011
Mangere Bridge 24,316 0.00 0.00 24,316 0.00235481
Mangere East Village 5,548 0.00 0.00 5,548 0.00075955
Mangere Town 271,380 0.00 0.00 271,380 0.0053403
Manukau Central 197,095 0.00 0.00 197,095 0.00053093
Manurewa 126,000 0.00 0.00 126,000 0.00139941
Milford 120,000 0.00 0.00 120,000 0.00096171
Mt Eden Village 78,035 0.00 0.00 78,035 0.00162809
New Lynn 110,000 0.00 0.00 110,000 0.00065196
Newmarket 1,349,663 0.00 0.00 1,349,663 0.00150652
North Harbour 310,000 192,123.39 150.00 117,877 0.00009758
Northcote 120,000 0.00 0.00 120,000 0.00394336
Old Papatoetoe 49,958 0.00 0.00 49,958 0.00143627
Onehunga 385,786 0.00 0.00 385,786 0.00370226
Ōrewa 162,262 0.00 0.00 162,262 0.00094497
Otahuhu 388,500 0.00 0.00 388,500 0.00300907
Otara 67,515 0.00 0.00 67,515 0.00210727
Panmure 422,759 0.00 0.00 422,759 0.00326905
Papakura 173,509 0.00 0.00 173,509 0.00084462
Parnell 309,558 0.00 0.00 309,558 0.00181093
Ponsonby 266,200 0.00 0.00 266,200 0.00137146
Pukekohe 383,900 0.00 0.00 383,900 0.00073816
Remuera 242,564 0.00 0.00 242,564 0.00408476
Rosebank 343,000 0.00 0.00 343,000 0.00058892
St Heliers  138,484 0.00 0.00 138,484 0.00403038
Takapuna 303,187 0.00 0.00 303,187 0.00046085
Te Atatu 77,000 0.00 0.00 77,000 0.00222019
Torbay 12,650 0.00 0.00 12,650 0.00112771
Waiuku 100,000 0.00 0.00 100,000 0.00115237
Wiri 165,000 0.00 0.00 165,000 0.00043485
Total 12,759,818 503,828   12,255,990  

Note:

  1. Properties subject to section 22 of the Local Government (Rating) Act 2002, or Section 73 of the Local Government Auckland Council Amendment Act 2010 will be assessed on the land value rates in the dollar shown in table 6.3.3.3 below.

Table 6.3.3.3 Business improvement districts fixed rate per property and rates in the dollar
BID/ Mainstreet area Fixed rate per property for 2012/2013 (including GST) ($) Rate in the dollar for 2012/2013 (including GST) to be based on the land value of the property ($)
Greater East Tamaki 195.00 0.00010873
Onehunga 0.00 0.00756120
Pukekohe 0.00 0.00158797
Rosebank 0.00 0.00126524

 
Araparera Forestry targeted rate

The Araparera Forestry targeted rate funds the operating costs of the commercial forest development, including maintaining the forest, general maintenance and ensuring that the fire breaks are maintained. It is expected that the forest will be harvested by the end of 2013/2014 and the targeted rate will then cease.

The Araparera Forestry targeted rate is based on the property’s capital value and levied on all rateable land in the parts of the district that will benefit from the scheme, being the whole of the Northern Ward of the former Rodney District Council, excluding all those properties located within:

  • the serviced townships of Wellsford (map DA/R/141), Snells Beach/Algies Bay (map DA/R/142), Omaha (map DA/R/144) and Warkworth (map DA/R/149)
  • Kawau Island and all other Islands and Sea only  access properties
  • all those properties which have moved from the Western Ward to the Northern Ward of the former Rodney District Council as a result of the Local Government Commission's determination of representation arrangements to apply for the October 2007 elections.

A rate in the dollar of $0.00001341 (including GST) for 2012/2013 of rateable capital value to produce around $65,500 (excluding GST).

 
Riverhaven Drive targeted rate

The council has constructed Riverhaven Drive for the benefit of those properties in the immediate area. The Riverhaven Drive targeted rate is used to repay the council for the cost of the road, including interest costs.

The targeted rate applies to the properties which benefit from the construction of a road that provides access to the properties. The construction of the road and the payment of the rate have been agreed with the association representing the property owners. The rate will apply until the cost of the project is recovered. The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 25 years (2006/2007 to 2030/2031). The outstanding balance will reduce each year as the principal is repaid. The rate for 2012/2013 is a uniform $10,449.91 (including GST) per property to produce around $163,564 (excluding GST).

 
Glorit Flood Gate Restoration targeted rate

A targeted rate for three rating units detailed below to recover the cost of Glorit flood gate restoration. The rate will apply until the cost of the project is recovered. The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 10 years (2009/2010 to 2018/2019). The cost of works together with interest and administration charges are apportioned on area of benefit basis as shown in table 3.3.3.4 below. The application of the Glorit Flood Gate Restoration targeted rate will produce $41,540 (excluding GST) in the 2012/2013 year.

Table 6.3.3.4 : Glorit Flood Gate Restoration targeted rate

Valuation number

Legal description
(abbreviated)

Area of benefit in hectares

Amount of targeted rate (including GST)

00910-00102

Sec 27 SO 59120

245

$44,249.26

00910-00502

Lot 5 DP 127940

2

$361.22

00910-00400

Sec 2 SO 69274

17.5

$3,160.66

 
Waitākere rural sewerage targeted rate

The rural sewerage targeted rate is set as a fixed charge on all rating units in the Non-Drainage Area of the former district of the Waitākere City Council where there are on-site waste management systems that are scheduled to be inspected and/or pumped out by the council within the three-yearly cycle, to recover the costs of implementation of the On-site Waste Systems Management Plan.

The fixed charge is levied in respect of each on site waste management system utilised in conjunction with the particular rating unit. The rural sewerage targeted rate is $182.98 (including GST) for each on-site waste management system utilised in conjunction with the rating unit. The application of the rural sewerage targeted rate is estimated to produce $0.7 million (excluding GST) in the 2012/2013 year.

 
Retro-fit Your Home targeted rate

The Retro-fit Your Home targeted rate is set on properties that have received financial assistance from Auckland Council for the installation of clean heat or insulation in respect of the property.

The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 9 years. The outstanding balance will reduce each year as the principal is repaid.

The targeted rate will apply as a rate in the dollar, which is multiplied against the ratepayer’s outstanding balance as at the 1 July each year. The rate in the dollar for 2012/2013 is $0.17125733 (including GST) which is multiplied against the ratepayer’s outstanding balance as at 1 July 2012. The targeted rate will produce around $1.3 million (excluding GST).

 
Kumeu Huapai Riverhead wastewater targeted rate

The Kumeu Huapai Riverhead wastewater scheme targeted rate is set on properties that have received financial assistance from Auckland Council for the purchase and installation of equipment for pumping waste from the property to Watercare’s pressurised wastewater scheme.

The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 15 years. The outstanding balance will reduce each year as the principal is repaid.

The targeted rate will apply as a rate in the dollar, which is multiplied against the ratepayer’s outstanding balance as at 1 July each year. The rate in the dollar for 2012/2013 is 0.12220484 which is multiplied against the ratepayer’s outstanding balance as at 1 July 2012. The targeted rate will produce around $0.3 million (excluding GST).

 
Point Wells wastewater targeted rate

The Point Wells wastewater targeted rate  is set on rating units or separately used or inhabited parts of a rating unit that received financial assistance to connect to the pressure wastewater collection (PWC) scheme in Point Wells area.

The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 15 years (2009/2010 to 2023/2024). The outstanding balance will reduce each year as the principal is repaid. The targeted rate will produce around $16,500 (excluding GST) for 2012/2013.

The rate varies according to the amount of assistance provided and will apply as a uniform rate as shown in table 6.3.3.5 below.

Table 6.3.3.5 : Point Wells wastewater targeted rate
Total assistance provided Amount of targeted rate (including GST)
$10,000 $843.25
$9,500 $801.08
$9,000 $758.92
$8,500 $716.76
$8,000 $674.60

 
Jackson Crescent wastewater targeted rate

The Jackson Crescent wastewater targeted rate is set on the rating unit that received financial assistance to connected the pressure wastewater collection (PWC) scheme in Jackson Crescent, Martins Bay area.

The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 15 years (2009/2010 to 2023/2024). The outstanding balance will reduce each year as the principal is repaid.

The rate will apply as a uniform rate of $608.88 (including GST) and will produce $529 (excluding GST).