Revenue and Financing Policy

The proposed rating models for new flood schemes and the general works require amendments to our Revenue and Financing Policy.  We are consulting on this at the same time as our Three-Year Plan.

A Statement of Proposal with a marked-up copy of the policy showing the changes is in the supporting information:

Statement of Proposal: Revenue and Financing Policy document

Fees and User Charges Policy

We apply fees and user charges to fund operating expenses where the people who benefit can be directly identified and charged. This includes charges for work such as processing resource consent applications, charges for compliance administration and monitoring, and freshwater science charges for water takes and discharges.

We review our fees and user charges every year to ensure we recover our expected costs, and that the costs are fairly shared amongst those who contribute to the need for the work.

We are consulting on our Fees and User Charges Policy including the fee schedule at the same time as our Three-Year Plan. A Statement of Proposal with the marked up changes is in the supporting information.  

We are proposing two new Harbourmaster fees

Hawke’s Bay’s waterways are used by recreational users and commercial operators for a variety of activities. Our Harbourmaster is responsible for ensuring maritime safety within regional waters, from Mahanga in the north, to Pōrangahau in the south.

1.   We are proposing to introduce a fixed Harbourmaster charge for Napier City Council

We currently charge Napier City Council a variable fee based on actual Harbourmaster time and materials for our costs of regulating maritime safety activities within the Ahuriri Inner Harbour.

For ease of administration, we are proposing to change this to an annual fixed charge based on a proportion of the total expenditure on harbour safety operations, like the way Napier Port is charged.

We are in discussions with Napier City Council on this new proposed fee.

2.   We are proposing to introduce an Anchorage Levy

We are responsible for maintaining two anchorage areas plus the risks associated with vessels that anchor there. The areas we manage are outside of the Napier harbour which Napier Port is responsible for.

We currently don’t charge for this work and are proposing to introduce a levy to contribute towards this.  

Vessels anchor in these areas for a variety of reasons (including port congestion, repairs, or maintenance) and the process of anchoring the vessel, the duration at anchor, and heaving the anchor to set sail pose significant pollution hazards and risks to maritime safety.

The proposed new levy would be a variable fee like those in place at some other ports in New Zealand. It would be charged to commercial vessels based on the length of the vessel and duration at anchor.

We plan to recoup about $60,000 per annum (based on an estimated 300 vessels anchoring for two days each).

We will be contacting shipping agents and Napier Port for their feedback on this proposed levy.

Rates Remission & Postponement Policies

What's the issue?

Most ratepayers on utilities rolls – including our local councils as well as power and telecommunications companies – have their network infrastructures either underground, overhead or along existing structures (like bridges). Their infrastructure (such as pipes for drinking water, wastewater, and stormwater) is generally not on land they own. This means that most rating units on utilities rolls have a capital value but not a land value.

As a result of the Regional Council’s recent decision to change the way we calculate the general rate, from land to capital value as part of a comprehensive rates review, these ratepayers will now be charged the general rate for the first time.  In some cases, this will see their rates bills increase quite substantially.

During the submission process for the policy review, the Regional Council received a joint submission from the four district and city councils in Hawke’s Bay requesting relief to lessen the impact on their utility rolls rates from the policy change. The rationale given was that the capital value of Three Waters assessments stand out as being disproportionate to other rateable assessments in the rating database, and that their community infrastructure assets do not impose a significant burden on regional council services.

What are we proposing?

In response to this submission, we are proposing a new remission called Significant Impact Remission resulting from changes to the Rating Policy for ratepayers on utilities rolls for one year to help the transition to the new policy settings.

We are consulting on three options. The Regional Council’s preferred option is Option B. Given the significant change in their rates bill, we think a one-year remission of 50% would give the most affected outlier ratepayers time to set their budget to incorporate these new rates.

An issue has been identified in our rating system where the capital value of some rating units on utility rolls was shown incorrectly. This meant that the figures originally shown below and on page 33 of the consultation document where slightly lower than they should have been. The figures have now been updated. Please note that the rates calculator includes the correct figures.

Option A: No remission

Councils and private utility companies would pay their utility rolls rates invoices on the full General Rate calculated on capital value, in line with the new Revenue and Financing Policy.

Impact on ratepayers on utility rolls: around $520,000 across 60 rating units.  

Impact for all other ratepayers: no impact on other ratepayers. Note that of the four local councils, this cost will likely be passed onto their ratepayers through district and city rates.

Option B: 50% remission for one year, outliers only 

Councils and utility companies with capital values ranging from $127M to $432M (outliers) would receive a remission for one year on 50% of the amount payable. This includes Hastings District and Napier City Councils, and one utility company.

Impact on the outliers: around $200,000 remitted and $200,000 still to be paid.

Impact on Central Hawke's Bay and Wairoa District Councils: around $33,000 still to be paid in full.

Impact for all other ratepayers across the region from reallocating the remitted amount: around $2.72 general rate increase per year on average*.

Option C: 50% remission for one year, local councils only

Councils would receive a remission for one year on 50% of the amount payable. This includes Wairoa, Hastings and Central Hawke’s Bay District and Napier City Councils only.

Impact on the councils: around $216,000 remitted and $216,000 still be paid by the four councils.

Impact for all other ratepayers across the region from reallocating the remitted amount: around $2.95 general rate increase per ratepayer on average.*

*Note this will impact ratepayers differently depending on their capital value; properties with large capital values will be the most affected.