A rates increase above the district’s average is proposed for the majority of residential properties in the Upper Clutha.

Queenstown Lakes District Council’s draft annual plan for this financial year (2022-23) was published last month and although it indicates an average rates increase district-wide of 5.96 percent, the proposed rates increase for median valued residential properties in Wanaka is 6.45 percent (an average increase of $205).

In Hāwea the proposed rates increase for median valued residential properties is 8.57 percent (an average increase of $228).

The increase to property values in Luggate has been more modest: as a result the proposed rates increase on median valued residential properties will be only 4.91 percent (an average increase of $143).  

The council says these proposed increases in rates are required even though the district’s population has grown greater than expected, with more ratepayers investing in property development, and lower than expected interest rates on council debt. 

Properties revalued: the impact on rates

Recently published new property valuations across all categories in Wānaka, including residential and commercial properties, have soared since the last valuations were assessed in 2017.

For instance in Wānaka the average residential property which was previously valued at $845,000 is now valued around $1.3M - an increase of over 53 percent. Commercial property increases in Wānaka have increased even further with the average median value now 70 percent higher.

Quotable Value (QV) was contracted by QLDC to update the rating values on properties and its district-wide revaluation reported an increase to the district’s total capital value (CV) of around 52 percent.

To ensure the combination of the new valuations plus the council’s annual increase in rates is not eye-wateringly high, the council has adjusted the differentials to flatten out this year’s rate increase across residential, commercial and accommodation properties. 

“Adopting these adjusted differentials [has] a moderating impact for 2022-2023 rates,” the council’s draft annual plan stated.

Planned council expenditure

The proposed rates increase allows the council to deliver its “biggest ever capital expenditure (CAPEX) programme”, the report said.

It stated the CAPEX programme for 2022-2023 amounts to $268M (gross) which is around $71.6M more than was budgeted in the original 10 Year Plan. 

The main reasons for the increase are additional investment in the wastewater ($33.1M) and transport programmes ($16.8M) as well as deferred expenditure from unspent budgets allocated last financial year.

The report said delivering this large CAPEX programme has proved challenging, with many projects encountering delays in the supply of materials, increases in costs and shipping, and constraints on available resources and essential skills. 

Increased user fees and more staff

Operational expenditure for 2022-2023 will increase by $8M to $198M but council plans to minimise the impact on ratepayers district-wide by increasing its operating revenue with higher user fees on individual ratepayers accessing council assets, such as the Wānaka Recreation Centre, and increasing other service fees, including resource and building consents.

The increased fees and charges are estimated to raise an additional $2.23M to offset some of the increased operational costs.

Council proposes to increase user charges for council sports assets, such as Wānaka’s Recreation Centre and pool.

The proposed increase in operating revenue is “considered essential” to ensure this council can maintain levels of service, allow for increases in legal costs for claims relating to ‘leaky buildings’, and to respond to central government’s reform programmes of the Resource Management Act, Three Waters, and the Local Government review. 

A $1.8M expenditure increase on staff is also anticipated and includes the establishment of an additional 17.6 full-time equivalent roles.

Public submissions to the draft annual plan for 2022-23 opened last month and close on ANZAC Day (Monday April 25). Public hearings in Wānaka are scheduled for May 25 and the final draft annual plan will be adopted by elected members at a full council meeting on June 30.

The council is encouraging locals to make a submission, seek community funding and grants, and provide feedback on any of the annual plan’s proposed fee and investment increases. Submissions can be made here.

General information on the annual plan and how to make a request for a community grant can be found here.