We are suggesting a move towards a fixed fee approach for some of our consenting work from 1 July 2024 as part of our proposed fees and charges schedule. There are a number of benefits to this for our community, including certainty of invoice amount, more timely invoicing, removing the need for a deposit and standard site visit costs will be built in.
This new approach shows how much our user-pays services cost. For example, how much it costs to apply for some resource consent applications, the charge-out rates staff can charge, technical costs and pre-application advice.
We are also proposing to adjust some prices to reflect the cost of delivering the service. In the supporting information you will find this proposed fees and charges schedule, which will also highlight the difference between what is currently being charged, and what is proposed to be charged next year (from 1 July 2024). We also highlight what we are proposing to change to a fixed fee.
This proposal doesn’t change the total amount of rates charged by us, but more about how it’s collected from the community.
What could it look like and what impact would this have on me?
We currently charge $54.49 in the Annual Plan 23/24 for a range of UAGC and targeted UAC (including the Civil Defence Emergency rate).
This represents approximately 8% of the total rates revenue we receive, but this is dependent on the specific workstreams funded by a UAGC/UAC rate.
Proposed options
Option 1
Council’s preferred option is to increase the UAGC and UAC charges to be approximately 8% of total rates each year of the Long-Term Plan, therefore as the rates rise in the future, the UAGC/UAC (including the Civil Defence Emergency rate) component of rates will increase in proportion to the increase in total rates.
- Increased UAGC and UAC total rates to 8% (amounts to $58.38 in Year 1 of the Long-Term Plan)
Option 2
There is also another option available for you to consider, which would increase the UAGC and UAC charges to 12% of total rates each year.
Please note that although the dollar value between the 23/24 Annual Plan year and Year 1 of the Long-Term Plan is similar in dollar value for the Council preferred option, this is impacted by the total number of ratepayers increasing in the 2024/25 year.
- Increased UAGC and UAC total rate to 12% (amounts to $90.70 in Year 1 of the Long-Term Plan).
We'd appreciate your feedback on the below strategy documents and policies. Download the supporting information document to find this or read them as individual documents on the side panel.
Financial Strategy
The draft Financial Strategy 2024-34 outlines how we intend to manage the money we receive from ratepayers and other sources. The strategy sets guidelines and limits on our use of that money and outlines that our aim is to take an approach that maximises the return on the investments we have and minimises risk. It also outlines how we will manage any funds in reserves and the Council’s self-imposed desired limits on rates increases.
The self-imposed limit on rates has been updated in the Long-Term Plan. Historically, there was a limitation on annual rate increases not exceeding 5% each year. The limit has now been set based on the proposed annual rate increases not exceeding 10% over the 10-year period of the Long-Term Plan.
For our Environmental Regulation and Protection work, Council intends to borrow an additional $110.7m of natural capital debt over the 10-year Long-Term Plan period. This would see principal loan repayments of $77.9m. Interest expenditure of $28.1m on this borrowing is expected (on an assumed interest rate of 6%). In the current three-year Long-Term Plan cycle, Council borrowed $19.4m, with principal repayments of $3.2m. We will treat investment in natural capital as operating expenditure in the year it is incurred because of accounting standards. This will lead to a timing mismatch between expenditure and when the associated rates revenue is received.
30-Year Infrastructure Strategy 2024-2054
We have a 30-Year Infrastructure Strategy for flood protection, land drainage, erosion control and river resilience works. Most of our infrastructure is for flood protection and control, and the strategy identifies potential issues within the 30-year timeframe that may impact the infrastructure and outlines the mechanisms for managing associated decisions. We also have land, forestry, telemetry and other associated assets that are covered by the strategy.
Revenue and Financing Policy
Our draft Revenue and Financing Policy outlines the principles and rationale used to select which funding source is the most appropriate for each of our operating and capital areas of expenditure.
Engagement, Significance and Māori Participation Policy
Our Engagement, Significance and Māori Participation Policy sets out how and when we will engage with our community. Largely, the policy included in the 2021-31 Long-Term Plan is thought to be fit for purpose, but we have made some minor updates to reflect the strengthening of our relationship with mana whenua and removed some of the detail that pointed to specific tools. We have also updated it to reflect changes in law – specifically the introduction of the Canterbury Regional Council (Ngāi Tahu Representation) Act 2022.
