FAQs

No. The costs that are proposed to be funded under these new rates are already being funded by existing rates and will just be charged differently.  The costs of running the Te Awahou Foxton Community Board are currently being recovered as part of the Representation & Community Leadership rates and this is a fixed charge paid by every property in the district. The proposal would transfer the costs out of this rate to the new targeted one. This would mean that the costs would only be paid by those that are within the Foxton/Foxton Beach community

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.

It’s local community – the Kere Kere ward 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 voters in the Kere Kere ward, and one councillor appointed by the Horowhenua District Council.

$188,000 (paid by rates each year)

Currently everyone’s rates include an equal amount that goes in to keeping this TAFCB running.

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. These costs also cover the current contract for The Horowhenua Company Limited to deliver economic development services on behalf of Council.

Currently, Economic Development is funded entirely through the district wide general rate, with the costs shared across all ratepayers.

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.

Cost – no change to the total funding 

Rates impact - Reduction in rates to non-Commercial, Utilities, Industrial and Mining properties of around 1-2%.

Commercial, Utilities, Industrial and Mining properties pay on average 8-9% higher rates.

No impact on debt

A rates remission is a reduction in the amount of rates owed, or waiving the collection of rates altogether. 

Once Council has set the rates for a given rating year, and they have been applied across the properties in the district according to the policies approved, a Rates Remission is the only way the total amount due on a property can be reduced.  

We're proposing to introduce the following changes to our Rates Remission Policy:

• The option for rates postponement – A rates postponement is a way of delaying the payment of your rates. Rates postponement can help you if you're on a fixed income and cannot afford to pay your rates, or if you have a financial hardship that makes it difficult for you to pay your rates. However, rates postponement doesn't mean that you can avoid paying your rates. You'll still have to pay them eventually, and the amount will increase over time due to interest and administration costs.
• Special circumstances remission to allow ratepayers to apply for a one-off reduction (up to 100%) in rates for that financial year if they meet certain criteria. This relates to exceptional situations that affect the ratepayer’s ability to pay rates.
• Remission for second dwellings on a property to reduce the level of fixed charges that properties may need to pay if they have a second dwelling (separately used or inhabitable part) on the property that is used for family purposes and doesn't generate any income.
• Remission for Buildings Requiring Earthquake Strengthening to provide rates relief for properties temporarily not fit for purpose due to the property undergoing development or earthquake strengthening by reducing the level of general rates.
• Provide more flexibility for remissions in the case of properties affected by natural hazard disasters and emergency events. This provides options for the Council to be more flexible when such events occur.

This enables us to mitigate the effects of any inequities in our rating system, promote social wellbeing, and help conserve our district's natural, historic and cultural resources.

Council’s across the country adopt their own Rates Remission and Postponement policies depending on the circumstances of their district/city. Some common remission examples are: 

• providing relief from rates to charitable organisations where the land is used principally for sporting, recreation or community purposes.
• contributing to district sustainability through providing relief to property owners who have voluntarily protected land or buildings of natural or cultural heritage value.
• postponing payment if ratepayers are experiencing severe financial hardship and/or older. 
• ensuring homeowners who live in commercial or industrial zoned areas are not unduly penalised. 

SUIP stands for separately used or inhabited part. SUIPs are listed in Schedule 3 of the Local Government (Rating) Act 2002 as one of the factors that may be used in calculating liability for targeted rates.  

Examples of Separately Used or Inhabited Parts include: 

• On a residential property, each separately habitable unit, flat, house or apartment. 
• On a commercial property, each separate space intended to be used as a shop or other retail or wholesale outlet, other than that used by the owner. 
• In an office block, each space intended to be used as offices that is or would be used by a different business from the owner. 

Horowhenua District Council currently uses SUIPs as a factor in the following rates: 

• Community Centre/Library Rate
• Representation and Community Leadership
• Solid Waste Disposal
• Aquatic Centres
• Wastewater
• Water Supply.

Council defines an SUIP in its funding impact statement, published as part of the Annual or Long Term Plan each year.  

Where rates are calculated on each SUIP of a rating unit, the following definitions will apply:  

• A SUIP of a rating unit includes any portion inhabited or used by the owner/a person other than the owner, and who has the right to use or inhabit that portion by virtue of a tenancy, lease, licence, or other agreement.

This definition includes separately used parts, whether or not actually occupied at any particular time, which are provided by the owner for rental (or other form of occupation) on an occasional or long-term basis by someone other than the owner.  

• Any part/s of a rating unit that is used or occupied by the ratepayer for more than one single use.  

For the purpose of this definition, vacant land and vacant premises offered or intended for use or habitation by a person other than the owner and usually used as such are defined as 'used'.  

For the avoidance of doubt, a rating unit that has a single use or occupation is treated as having one separately used or inhabited part. 

Contiguous rating is a legislative requirement under Section 20 of the Local Government (Rating) Act 2002. This requires Council’s to treat two or more rating units as if they were one for rating purposes if those units are: 

(a) owned by the same person or persons; and 

(b) used jointly as a single unit; and 

(c) contiguous or separated only by a road, railway, drain, water race, river, or stream. 

This is most commonly applied in the rural sector whereby various pieces of land, under different certificate of titles, are owned by the same person and used for a single farm operation.  

Some parcels of land are incapable of independent development by virtue of their small size, irregular shape, landlocked or remote location, nominal rateable value or nil potential uses. These parcels are commonly referred to as “remnant land”.  

A rates postponement is a way of delaying the payment of your rates. Rates postponement can help you if you are on a fixed income and cannot afford to pay your rates, or if you have a financial hardship that makes it difficult for you to pay your rates.  

However, rates postponement does not mean that you can avoid paying your rates. You still have to pay them eventually, and the amount will increase over time due to interest and administration costs.  

The Council have proposed a cumulative total of rates postponed up to 0.5% of operating income. For the 2023/24 financial year this limit is planned to be approximately $360,000.

The ratepayer who has the postponement will be responsible for paying those costs, this will form part of the agreement with the ratepayer before the postponement is confirmed.