How your rates are calculated

The amount of rates you pay is largely based on the land value of your property as supplied by our valuer, QV New Zealand. Other factors include rating areas and targeted rates.

The rating system is the mechanism by which the net funding requirements of the Council's programmed works and services detailed in this year's Long Term Council Community Plan are charged to the district's ratepayers. Rates are levied as a tax on property in compliance with the statutory provisions of the Local Government (Rating) Act 2002.

Two methods are used to determine the allocation of cost to an individual property:

1.   Rating Areas
2.   Differential Rating

Rating Areas

The Hastings district is divided into two distinct rating areas based upon:

• A Statistics New Zealand definition of an urban area with a boundary based on effective daily links to the city.
• Relative opportunity to use urban based facilities within an approximate 10-15 minute radius of the city.
• The Hastings District Council planning zones, which influence the opportunity to use land.
• The types of land-use within the District.

Rating Area 1 (green) can broadly be described as 'urban', Rating Area 2 (pink) as 'rural'.

The costs of the Council's various activities are apportioned into the two rating groups using agreed formulae which reflect, as near as possible, the costs of providing services to each of these areas.

A discounted population formula is used to apportion a range of costs within the Community Services Group. A discounting factor of 50% is applied to Rating Area 2, to account for remoteness from facilities.

Differential Rating

Within each rating area in the District, the Council recovers the general rate requirement on a differential basis on the land value of a property.

The structure is as follows:

Differential Rating Area One:

Differential Rating Area Two:

The differentials are based on a Council assessment of cost/benefit with some modifications to allow for transitional impacts on certain categories of ratepayers.

Types of Charges

General rate

The general rate funds the majority of the Council's expenditure. It is based upon the land value of property and is calculated based on a system of differential rating.

Wastewater, Refuse, Collection and Water supply

The Council levies a targeted rate where the receiver of a benefit from a specific service can clearly be identified. Uniform annual charges are levied to recover the full costs of water supply, wastewater disposal and refuse/kerbside recycling collection. Note: Only properties connected, or able to be connected to the service are charged.

Uniform annual general charge

The Council also levies a uniform annual general charge across all properties in the District. This is a flat charge levied across all properties irrespective of land value. Those activities included in the charge are rate collection, cost of democracy, community facilities (10%), economic development, Hawke's Bay Tourism grant, visitor information centre, marketing services, civil defence (50%), wastewater treatment (20%).

Community and Resource Management Rate

This rate funds the first 35% of the Community Services and Resource Management budgets.

Targeted rates

Targeted rates are levied in the areas where particular works or services are being provided.

Havelock North Promotion Rate

This rate funds the marketing and promotion of the Havelock North Village.

The goals and objectives of the programme are administered by the Havelock North Village organisation. These include:

• To ensure Havelock remains an appealing and friendly "village"
• To liaise between the business community and other interested parties as a means to strengthen existing business and create new opportunities
• To bring more people into Havelock North
• To advocate for Havelock North

The Havelock North Village organisation is structured around two key components:

1. Design - To enhance the physical and social environment of Havelock North
2. Promotion - to attract increased interest in and use of Havelock North

Commercial properties with a defined area of the CBD are levied a rate to fund the promotion programme.

Hastings City Marketing

Hastings City Marketing promotes businesses in the Hastings CBD, which pay this targeted rate.

Security Patrol Rate - Hastings 

Council, in a joint venture with the New Zealand Police, established a Security Patrol operation in early 1993.

The aim of the patrol is to reduce anti-social behaviour and crime occurring in the commercial areas of Hastings. This includes such things as graffiti, theft, violent assaults, drunkenness, property damage and petty crimes.

The Security Patrol Officers cover the patrol zone at least 2-3 times per evening, during the hours 8pm and 5am, seven days a week.

The patrols are not intended to replace existing security systems but rather enhance those systems and those of the New Zealand Police force. (The Patrol Officers are often first to an alarm action and regularly assist private security guards).

The patrol area covers the CBD including Stortford Lodge and Mayfair and is funded by property owners in that defined area.

Security Patrol Rate - Havelock North 

From 1 July 2006 the Council has agreed to provide security patrols for the Havelock North CBD.

Road Seal Extension

The Council in 2001 consulted with the rural community regarding a proposal to seal an additional 10 kms of unsealed road over and above the current work programme, for a 10-year period.

Properties with Rating Area Two (Rural) are levied a $110 uniform annual charge to fund this work, which commenced in the 2001/02 financial year.

Swimming Pool Safety 

A Targeted Rate of $35.80 set on each rating unit on which is located a swimming pool within the meaning of the Fencing of Swimming Pools Act 1987 and is therefore provided with, or has available to it, the Council's Swimming Pools Safety Service (includes two inspections over the inspection cycle).

Havelock North Parking 

From 1 July 2007 the Council has set a new rate for parking for Havelock North properties.

Whakatu Stormwater Rate 

This targeted rate is to fund the provision of a new reticulated stormwater system to service to an area of approximately 52.2 hectares in Whakatu West. Properties can elect to pay the required amount in one lump sum in the 2007/08 year or over a period of 10 years.