Topic 3: Sharing costs - who should pay for what?

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We’re proposing to change how we share rates for the Te Awahou Foxton Community Board, and Economic Development. We’re also proposing changes to our Rates Remission Policy.

3A: Te Awahou Foxton Community Board Rate

Te Awahou Foxton Community Board (TAFCB) represents its local community and advocates to Council about local issues, including public transport and facilities such as libraries and parks.

The board has six members: five members elected by Kere Kere Ward voters, and one Councillor appointed by Horowhenua District Council.

The Board receives $188,000 in funding from Council, paid for by rates, each year.

Currently everyone’s rates include an equal amount that goes in to keeping TAFCB running. We'd like to know if you agree to keeping it this way or would prefer a Targeted Rate which would see Foxton and Foxton Beach ratepayers pay a Targeted Rate.





The Te Awahou Foxton Community Board (formerly the Foxton Community Board) was established in 1989 as part of the local government reorganisation. Its role is to represent and act as an advocate for the interest of the Foxton and Foxton Beach communities. It also acts as an advisory body to Council in relation to requests for funding from the Foxton Beach Endowment Fund. The Foxton Beach Endowment Fund was established by statute and can be used for “…the provision of services and public amenities for the benefit of the inhabitants of Foxton Beach Township, or on the improvement, maintenance, or repair of any such services and amenities, or on the improvement, maintenance, or repair of any existing services or public amenities”.

While the final decision on the use of the Foxton Beach Endowment Fund rests with the Council, Te Awahou Foxton Community Board assesses applications to the fund, and also advocates for the use of the fund for local initiatives, and makes recommendations to Council ahead of their decision.


3B: Economic Development Targeted Rate

We're considering changing the way economic development is funded, but not changing the amount of money put towards this.

We want and need the economy of Horowhenua to thrive. This leads to better standards of living, improved education opportunities, better paying jobs, good quality housing, and access to quality healthcare.

Currently, economic development is funded entirely through the districtwide General Rate, with the costs shared across all ratepayers. However, the level of benefit that ratepayers experience from the funding Council puts into economic development will vary, with the greatest benefit being experienced by the business community.

The economic development funding covers business support and advice provided to existing businesses, Iwi and Māori economic development, inward investment, training opportunities, communications, and provision of economic data. The majority of this budget is provided to The Horowhenua Company Limited who hold the current contract to deliver economic development services on behalf of Council.

We have been working hard to come up with another option for your consideration which acknowledges this difference. We’re proposing a new Horowhenua Economic Development Targeted Rate. This would be targeted to reflect the benefit that businesses gain from having more people either moving to our district or visiting and spending on goods and services here.

3C: Rates Remission Policy

The Rates Remission Policy was consulted on in 2023. The Policy aims to provide some ratepayers in Horowhenua with options to apply for some reductions in their rates. It also provides the opportunity for some residents to apply to postpone their rates.





Visit the Rates Remission and Postponement Policy consultation for more information.



Councillors voted to hold the decision on finalising the new policy until a review of the budget for remissions was completed. In the Long Term Plan budget we have budgeted a cap of approximately 1% of rates or $630,000 for remissions, which is the same level as for 2023/24. The cap is in place so that if more people apply for remissions in each space, they could receive less remissions than they have in the past. The other option that Elected Members considered was increasing the budget for remissions to $959,000 to ensure everyone that currently receives a remission continues to receive the same level of remission as they currently do.

Because this would have required us to increase rates by a further almost $330,000 or 0.6%. Elected Members were not supportive of this option.

The Rates Remission Policy changes include capping the level of rates for the following remissions:

  • Part 7 - Land Used for Primary Industry and Rural Residential purposes in areas that have been rezoned as Residential and Business Zones – limiting the remissions to $220,000. This will result in an approximate 26% reduction in the level of remission for properties that currently receive the remission.
  • Part 11 - Subdivisions which are in Common Ownership but do not meet the criteria of a Contiguous Property – this remission will not be provided in the next financial year.
  • Part 12 Bare land - This will result in an approximate 50% reduction in the level of remission for properties that currently receive the remission.
  • Part 14 - Contiguous rating units not in common ownership. This will result in an approximate 50% reduction in the level of remission for properties that currently receive the remission.
  • Part 15-17 - for Property under development or earthquake strengthening, Rating units containing two or more Separately Used or Inhabited Parts
  • (SUIP) and Special Circumstances Remission – The total available remissions will be capped at $25,000.

Should we cap the level of rates for the remissions above?






Submissions closed

Submissions closed at 4pm on Monday 15 April 2024.

Hearings will take place on 1 May, followed by deliberations on 22 May 2024. Council will receive all submissions before this to inform that discussion and subsequent decisions. Elected Members will adopt the final Long Term Plan on 26 June 2024.



We’re proposing to change how we share rates for the Te Awahou Foxton Community Board, and Economic Development. We’re also proposing changes to our Rates Remission Policy.

3A: Te Awahou Foxton Community Board Rate

Te Awahou Foxton Community Board (TAFCB) represents its local community and advocates to Council about local issues, including public transport and facilities such as libraries and parks.

The board has six members: five members elected by Kere Kere Ward voters, and one Councillor appointed by Horowhenua District Council.

The Board receives $188,000 in funding from Council, paid for by rates, each year.

Currently everyone’s rates include an equal amount that goes in to keeping TAFCB running. We'd like to know if you agree to keeping it this way or would prefer a Targeted Rate which would see Foxton and Foxton Beach ratepayers pay a Targeted Rate.





The Te Awahou Foxton Community Board (formerly the Foxton Community Board) was established in 1989 as part of the local government reorganisation. Its role is to represent and act as an advocate for the interest of the Foxton and Foxton Beach communities. It also acts as an advisory body to Council in relation to requests for funding from the Foxton Beach Endowment Fund. The Foxton Beach Endowment Fund was established by statute and can be used for “…the provision of services and public amenities for the benefit of the inhabitants of Foxton Beach Township, or on the improvement, maintenance, or repair of any such services and amenities, or on the improvement, maintenance, or repair of any existing services or public amenities”.

While the final decision on the use of the Foxton Beach Endowment Fund rests with the Council, Te Awahou Foxton Community Board assesses applications to the fund, and also advocates for the use of the fund for local initiatives, and makes recommendations to Council ahead of their decision.


3B: Economic Development Targeted Rate

We're considering changing the way economic development is funded, but not changing the amount of money put towards this.

We want and need the economy of Horowhenua to thrive. This leads to better standards of living, improved education opportunities, better paying jobs, good quality housing, and access to quality healthcare.

Currently, economic development is funded entirely through the districtwide General Rate, with the costs shared across all ratepayers. However, the level of benefit that ratepayers experience from the funding Council puts into economic development will vary, with the greatest benefit being experienced by the business community.

The economic development funding covers business support and advice provided to existing businesses, Iwi and Māori economic development, inward investment, training opportunities, communications, and provision of economic data. The majority of this budget is provided to The Horowhenua Company Limited who hold the current contract to deliver economic development services on behalf of Council.

We have been working hard to come up with another option for your consideration which acknowledges this difference. We’re proposing a new Horowhenua Economic Development Targeted Rate. This would be targeted to reflect the benefit that businesses gain from having more people either moving to our district or visiting and spending on goods and services here.

3C: Rates Remission Policy

The Rates Remission Policy was consulted on in 2023. The Policy aims to provide some ratepayers in Horowhenua with options to apply for some reductions in their rates. It also provides the opportunity for some residents to apply to postpone their rates.





Visit the Rates Remission and Postponement Policy consultation for more information.



Councillors voted to hold the decision on finalising the new policy until a review of the budget for remissions was completed. In the Long Term Plan budget we have budgeted a cap of approximately 1% of rates or $630,000 for remissions, which is the same level as for 2023/24. The cap is in place so that if more people apply for remissions in each space, they could receive less remissions than they have in the past. The other option that Elected Members considered was increasing the budget for remissions to $959,000 to ensure everyone that currently receives a remission continues to receive the same level of remission as they currently do.

Because this would have required us to increase rates by a further almost $330,000 or 0.6%. Elected Members were not supportive of this option.

The Rates Remission Policy changes include capping the level of rates for the following remissions:

  • Part 7 - Land Used for Primary Industry and Rural Residential purposes in areas that have been rezoned as Residential and Business Zones – limiting the remissions to $220,000. This will result in an approximate 26% reduction in the level of remission for properties that currently receive the remission.
  • Part 11 - Subdivisions which are in Common Ownership but do not meet the criteria of a Contiguous Property – this remission will not be provided in the next financial year.
  • Part 12 Bare land - This will result in an approximate 50% reduction in the level of remission for properties that currently receive the remission.
  • Part 14 - Contiguous rating units not in common ownership. This will result in an approximate 50% reduction in the level of remission for properties that currently receive the remission.
  • Part 15-17 - for Property under development or earthquake strengthening, Rating units containing two or more Separately Used or Inhabited Parts
  • (SUIP) and Special Circumstances Remission – The total available remissions will be capped at $25,000.

Should we cap the level of rates for the remissions above?






Submissions closed

Submissions closed at 4pm on Monday 15 April 2024.

Hearings will take place on 1 May, followed by deliberations on 22 May 2024. Council will receive all submissions before this to inform that discussion and subsequent decisions. Elected Members will adopt the final Long Term Plan on 26 June 2024.



Page last updated: 26 Apr 2024, 01:24 PM