Annual Plan 2022/23

The proposed average rates increase across the district is 6%.

This is an average, and for individual ratepayers the actual change may be smaller or greater, depending on your location and the services provided.

This 6% average increase is slightly higher than the 4.9% average that we forecast in the Long-term Plan last year – but is in line with the current levels of inflation in New Zealand.

It is also within the 6% limit set by the Council in its financial strategy.

When we prepared our LTP, inflation was still at low levels in New Zealand. In the past 12 months the Council – just like every other business and household – has faced significant increases in costs, as shown in the latest inflation indexes:

• Consumer Price Index 5.9% year to December 2021
• Producer Price Index (eg construction costs) 8.6% year to December 2021

Other significant cost pressures include:

• increased fuel costs
• supply chain delays and cost increases
• impacts of the Russia-Ukraine conflict on fuel prices · tight labour market.

These increased costs mean that we have to increase both operating expenditure (day to day service costs) and capital expenditure (cost of infrastructure and facilities) just to maintain our current levels of service.

The district’s continuing growth also puts pressure on our operations, and we are boosting our resources in areas like building and resource consents, cybersecurity, digital technology and infrastructure support, to meet the demands of a larger population.

Revaluation

Individual changes in rates have also been affected by the district revaluation recently completed. An increase in the capital value (CV) of your property doesn’t mean your rates will increase by the same amount.

For most residential properties in Selwyn, only around a quarter of your rates bill is based on the capital value of a property, with the majority of the rates set based on a fixed amount per property.

If your capital value has increased by more than the average increase (33.7%) you can expect a slightly higher than average increase in your rates from 1 July 2022. If your property value increase was less than the average, you can expect a slightly lower than average increase in your rates.

Across most of Selwyn, many rural property owners will see a reduction in rates this year while our urban home owners have an increase. This is because urban property values generally grew faster than rural properties over the past three years.

Find out more about revaluation at www.selwyn.govt.nz/services/rates/rating-valuations.

Rating examples

The tables in the Consultation Document on page 13 show examples of the proposed rates changes for a sample of typical properties in a range of locations across the district. For each example we show the current capital value, the new capital value following revaluation (applies from 1 July 2022), the current year’s (2021/22) rates, the proposed rates for next year (2022/23) and the amount of the increase both as a percentage and in dollars.

In the Long-Term Plan 2021-2031 last year, the Council agreed to proceed with development of a new community centre in Hororātā, at the domain. We agreed to undertake further engagement with the local community over the development, including funding arrangements and the future of the existing hall.

What we’re proposing

Following local engagement, we’re now proposing that the original plan would not proceed. Instead, it would be replaced by a proposal put forward by the Go Hororātā community group. The group’s proposal is to establish a Hororātā Community Hub, located at the current Hororātā Community Hall. This would include upgrading and renewing the existing hall building. Ownership of the hall, the land it is located on and the adjacent endowment land would be transferred to a local community entity, which would also be responsible for upgrading and renewing the existing hall building.

Cost

The Council is proposing to contribute $1 million in cash to the Hororātā Community Hub. This would be subject to the satisfactory completion of a feasibility study of Go Hororātā ’s proposal, including design and building costs for the upgrading and renewing of the Community Hall building. This sum was already set aside in the Long-Term Plan for the original community centre project. However as the scope of the project has now changed we are seeking the wider community’s feedback.

Impact on rates

This would have no significant impact on rates, as the funding was already committed.

Have your say

Let us know whether you support the proposal to provide $1 million in funding, and the transfer of the land and the hall, to support the Go Hororātā community group’s proposal for a Hororātā Community Hub.

Water races have been part of the Selwyn landscape for more than 130 years. Today, the Council manages around 1,700 kilometres of water races across the district, primarily to provide drinking water for stock. Water races also provide a water resource for firefighting, irrigation and habitat, as well as enhancing the attractiveness of the rural and urban landscapes they pass through.

There are currently three water race schemes within the district: Ellesmere, Malvern and Paparua. The Ellesmere scheme includes the Upper Ellesmere Water Race network, which is fed through the Glenroy Community Irrigation Company Limited irrigation pond. Following the development of the Central Plans Water (CPW) Irrigation Scheme (Stage 1), there has been demand for the Upper Ellesmere Water Race network to be closed. The reasons include:

• land owners (including those supplied by CPW and other sources) no longer require the source of stock water
• land owners do not want to pay for the cost of the service.

The former Water Race Committee and Council supported the proposal to close the race network through the 2018 and 2021 Long-Term Plans.

For more information about Selwyn water races, see www.selwyn.govt.nz/services/water/water-race

What we’re proposing

It is proposed to close significant parts of the Upper Ellesmere Water Race network over a five-year period. Check the map of the network which shows the constituent races to be closed and the time frame for each closure. The strategic race will remain open for the time being, to supply water to an identified mudfish site. The future closure of the strategic race will be subject to further consultation.

Cost

This proposal would not have a direct impact on individual rates, but would result in a reduction in rating income from this activity. This reduction in rating income is estimated to increase to around $500,000 per year over the five years of the closure period. Maintenance costs will also reduce over this period.

Impact on rates: This would have no significant impact on rates, as the funding was already committed.

Have your say

Let us know whether you support the proposal to close parts of the Upper Ellesmere Water Race over a five-year period.

Selwyn's water race network provides an important resource for rural Selwyn. However, it is acknowledged that the network provides limited economic benefit for small properties, while for large properties there is a point at which the water race network physically cannot efficiently service the whole property.

What we’re proposing

The Council is proposing to adjust the funding impact statement in its 2022/23 Annual Plan to incorporate changes to the water race targeted rating of properties less than 0.5 hectares in area and for land areas greater than 500 hectares in area. These changes would come into effect from 1 July 2022.

Cost

• Under this proposal, the annual charge and per hectare charge will only apply to each rating unit larger than 0.5 hectares where water race service is available.
• In addition, the per hectare charge will only apply to the first 500 hectares, where water race service is available.

Impact on rates

These proposed changes would apply to 53 properties under 0.5 hectares and 11 properties over 500 hectares; and would result in a loss of rating income for the Council of around $82,000 per year comprising:

• $16,000 annually for properties less than 0.5 hectares
• $66,000 annually for properties with land area greater than 500 hectares.

Have your say

Let us know whether you support the proposal to make changes to the water race rating structure.

Ecological Enhancement targeted rate protecting and enhancing biodiversity across Selwyn is one of the ways the Council supports the district’s environmental well-being. Selwyn has a unique, historic network of land drainage schemes, serving more than 24,000 hectares. The seven schemes drain groundwater to make land arable for farming purposes, and in some cases have an important flood protection function.

The land drainage network also provides important biodiversity and ecological habitats. There is a growing focus on the environmental performance of Selwyn’s land drainage network, and the District Land Drainage Committee has recommended a dedicated rate to help improve and enhance the biodiversity and ecology of this network.

What we’re proposing

The Council proposes to introduce an Ecological Enhancement targeted rate of $20 per rating unit, for properties in the district not paying a land drainage rate. The new targeted rate will generate $4.7 million over the next 10 years. The funding generated by this rate will be used for a range of projects and activities that support and improve the biodiversity of the land drainage network. Projects may include, for example, the construction of wetland, waterway plantings, and ecological, cultural and water quality monitoring.

Impact on rates

The new rate of $20 a year per rating unit, is equivalent to around 38.5 cents per week. Alongside the new Ecological Enhancement targeted rate we’re also proposing to simplify the current rating structure for land drainage. This is overly complex, with 33 different rating factors operating across the seven land drainage schemes. The proposed new rating structure provides four standardised rating factors to replace the existing 33 rating factors:

Maps showing the catchments of the seven land drainage schemes can be found online at www.selwyn.govt.nz/services/water/landdrainage. Changes to the extent of the L2 boundary have been made to include the full directly-connected catchment and it is proposed that the Leeston township is included within the Leeston Drainage District.

Have your say

Let us know whether you support the proposal to introduce a new Ecological Enhancement targeted rate of $20 per rating unit (for properties not paying land drainage charge), and the proposed simplified Land Drainage rating structure.