Rates are a form of tax, and the basic principle of a tax is that everyone pays to benefit the greater community. They’re not necessarily about paying for the services you use or receive - they’re about everyone paying a portion towards making their community a great place to live. Our rates are made up of a mix of tax-based systems, and user pays charges.

Tax based rates (known as ‘general rates’) generally contribute towards services that everyone benefits from – such as roads, libraries, parks and reserves, democracy, pools, online services, civil defence etc. There are two kinds of general rates:

- Capital value: the higher value your property is, the higher rates you pay

- Uniform Annual General Charge (UAGC): a set fee charged to all properties. The UAGC is designed to ‘level the playing field’ so that the gap between high value and low value properties isn’t so significant.

User pays charges (known as ‘targeted rates’) are rates charged for specific services that are only charged to the people who receive that service - such as rubbish collection, water and rural halls.

Rates are Council’s main source of income. We’d like to have more options (such as a tourist tax, or receiving a portion of GST), but at the moment, the tools within the Rating Act are the only option we have.

The other user pays charges are our fees for using specific services – such as pool entry, building or resource consents, venue hire fees, transfer station fees, dog registration and more. Most services funded through fees and charges are also subsidised through general rates.

We’re proposing some significant rates increases – but we’re also proposing some significant increases to various fees and charges. This is a conscious decision about ‘how we cut the pie’. Our costs have gone up significantly and we have to cover those costs – we can either recover it ALL through rates, or recover some of it through higher fees (i.e. more user pays). We think it’s fairest to split those increases across both where possible.

Our draft Fees and Charges are being consulted on alongside this Long Term Plan – you can find out more at mpdc.nz/fees.

Waka Kotahi/New Zealand Transport Agency contributes 51% of costs towards our local roading network. We also receive occasional grants from central government towards specific projects – past examples are the Provincial Growth Fund projects, Tourism Infrastructure Fund, and Transport Choices projects.

With the changing government it is difficult to predict what grants and subsidies will be available for this Long Term Plan. To the best of our knowledge, these subsidies will remain the same, and we have budgeted based on this assumption (e.g. that we will receive our existing level of funding towards roading).

Council continues to carry a small cash investment of $5.4 million (originating from the Power New Zealand share distribution many years ago). Interest revenue from the fund is used to offset rates, and the fund itself provides a source of emergency funding - for example in the case of a natural disaster. If there is any surplus cash between rates instalments this also earns interest revenue.

As the district grows, our extensive roading, water, wastewater and stormwater networks need to grow to support this growth. To help fund the cost of this, developers are charged a ‘Development Contribution’. Our Development Contribution Policy is being consulted on alongside this Long Term Plan – you can find out more at mpdc.nz/ltp.

Includes things like regional petrol taxes, and fines and infringement fees.