Agenda of Ordinary Council Meeting - Wednesday, 11 June 2025

Ordinary Council Meeting Agenda

11 June 2025

8.1 Adoption of Draft Annual Plan 2025/26

1. Purpose

For the Council to consider the adoption of the draft Annual Plan 2025/26 and resolution to set rates for the year ending 30 June 2026.

2. Significance

The matters for decision in this report are not considered to be of significance under the Significance and Engagement Policy.

3. Background

Council produces a Long-Term Plan (LTP) every three years. The LTP is subject to the Special Consultative Procedure as set out in the Local Government Act 2002 (LGA). Annual Plans are produced for Years 2 and 3 of an LTP, confirming forecasts and considering any changes that have occurred since the LTP was adopted.

Council adopted its most recent LTP in 2024, covering the period 2024-2034. The Draft 2025/26 Annual Plan (Attachment 1) is year 2 of this LTP.

4. Discussion

4.1 Updating Data for Year 2 of the 2024-34 LTP

While preparing forecast budgets for 2025/26, potential changes or variations to the LTP were identified and discussed informally with Council. These changes reflect the latest data available, changes to some assumptions, and better cost estimates together providing a more accurate starting position for the 2025/26 Annual Plan.

Changes made in the 2025/26 Annual Plan when compared to the forecasts in the 2024-34 Long-Term Plan, include:

· Resetting the base from the Annual Report 2024.

· Recalculating the opening balances on loans, reserves and capital programmes.

· Aligning Transportation budgets to the latest NZTA National Roading programme.

· Critically reviewing all operating costs for savings opportunities.

· Removing inflation assumptions.

· Updating insurance and interest rate assumptions with the latest data.

· Inclusion of newly legislated Government Levies for the Water Services Regulator - Taumata Arowai.

These variations have been assessed against Council’s Significance and Engagement Policy. None of these variations have been assessed as significant, and there are no changes to levels of service being provided by the Council from year 2 of the LTP. As a result, Council resolved not to formally consult on the draft annual plan.

4.2 Further Changes from LTP

Council sought advice on the potential to deferring the proposed uplift in waters depreciation funding - planned to go from 50% to 75% in 2025/26 as part of the Long-Term Plan decisions.

Deferring this change is inconsistent with the 2024-34 Long-Term Plan. The Local Government Act 2002 (LGA) provides for the fact that sometimes Councils make decisions that are inconsistent with previous decisions or previously adopted policies. The LGA treats Long-Term Plans as a policy decision of Council, and as such provides a mechanism for amending these decisions.

The Cl 96 (3) of the Local Government Act 2002 states

Subject to section 80 ….. a local authority may make decisions that are inconsistent with the contents of any long-term plan or annual plan.”

Section 80 states a local authority must clearly identify;

a) The inconsistency; and

b) The reasons for the inconsistency; and

c) Any intention of the local authority to amend the policy or plan to accommodate the decision.”

Furthermore, Council needs to satisfy itself any proposed departure from the LTP is also considered against the requirements of the LGA and other Council policies should these be relevant.

Under our Significance and Engagement Policy waters assets are considered named Strategic Assets. Consultation on the proposed transfer of these assets to a joint Water Services Council Owned Organisation (WSCOO) occurred during April 2025, followed by Hearings and Deliberations in May 2025.

Other key factors contemplated as part of our Significance and Engagement Policy have also been considered including the effects of the proposed change on ratepayers’ groups, the amounts involved, and any potential impact on levels of service. After taking legal advice, Management does not believe the proposal to defer the increase in water depreciation charges for 2025/26 requires further consultation.

Management considers that the impact of deferring the change in waters deprecation charges by one year will:

1. reduce targeted waters rates rises for urban and commercial ratepayers.

2. will not adversely affect remaining ratepayers.

3. will not negatively affect any ratepayer groups.

4. does not appear to be significant.

5. is short term and reversable.

6. will not affect levels of service.

7. will not impact our prudence benchmarks.

8. will not affect our balanced budget across the LTP period.

9. is inconsistent with our LTP, but not of such significance that it requires an LTP amendment or further consultation.

10. is provided for in the Local Government Act 2002.

In summary Council can defer the increased ratepayer funding of waters depreciation from 50% to 75% for the 2025/26 fiscal year without the need for further consultation, as long as the requirements of section 80 of the LGA 2002 are followed.

The reason for the deferral, or inconsistency with the Long-Term Plan, is to reduce the significant impact of rates rises on urban and commercial ratepayers caused by the increase in waters depreciation charges.

Without this deferral, the proposed increase in charges for ratepayers connected to, or able to connect to, water supply and wastewater services would be disproportionate to the average rates rise. Including this deferral brings the average urban and commercial rates rises more in line with the districts overall average rates rise.

An amendment to the Long-Term Plan is likely to be needed following decisions regarding Local Water Done Well. It is expected this will occur in late 2025 or early 2026. Consulting with the community on deferring waters depreciation charges could also occur at the same time. Council may wish to make this one-off deferral permanent, reverse it for 2026/27, or limit future changes to water depreciation funding.

Average rates increase

The Long-Term Plan forecast an average increase in rates required for the 2025/26 year of 13.0%. Following the above-mentioned changes, the average increase in rates required in the Draft 2025/26 Annual Plan has reduced to 5.4%.

The average rates increase is across all rateable properties. The Draft Annual Plan includes example properties across different rating categories and values, indicating anticipated rates requirements for 2025/26 compared to last year. Actual increases will vary depending on the specific circumstances, services and values for each property.

The increase also does not include any increase in Greater Wellington Regional Council (GWRC) rates. GWRC set their rates independently, however CDC collects rates on their behalf. GWRC’s average rates increase at time of writing has yet to be confirmed.

Carry-forwards

Funding for some capital projects included in the current financial year may need to be carried forward into the 2025/26 year. These projects may be in progress, but not yet fully completed. Other projects may still be in planning stages but are still required to be completed.

A review of capital projects will be undertaken at the end of the fiscal year to determine if any project funding needs to carried-forward into the 2025/26 Annual Plan. These projects will be brought to Council for consideration.

5. CONSIDERATIONS

5.1 Climate change

No specific considerations.

5.2 Tāngata whenua

No specific considerations.

5.3 Financial impact

The rates resolution enables Council to set its rates for the 2025/26 year.

5.4 Community Engagement requirements

Due to the annual plan not being significantly different to year 2 of the Long-Term Plan, formal consultation was not undertaken.

The adopted Annual Plan will be published on the Council’s website within 30 days.

Council will need to consider the requirements for further consultation on the proposed changes to funding of Waters depreciation as part of the anticipated LTP amendment required as part of Local Waters Done Well, in 2026.

5.5 Risks

No specific risks identified.

6. RecommendationS

That the Council:

1. Receives the report.

2. Notes changes made to the second year of the 2024-34 Long-Term Plan have been reflected in the draft 2025/26 Annual Plan.

3. Notes the deferral of the increased ratepayer funding of waters depreciation from 50% to 75% for the 2025/26 fiscal year is inconsistent with the 2024-34 Long-Term Plan.

4. Notes the deferral of increased ratepayer funding of waters depreciation can be considered by Council without the need for further consultation.

5. Notes Council will consider further public consultation on deferring ratepayer funding of waters depreciation in 2026.

6. Adopts, pursuant to Section 95 of the Local Government Act 2002, the draft Annual Plan 2025/26, including the schedule of fees and charges in Attachment 1 and 2.

7. Delegates authority to the Mayor and Chief Executive to make minor editorial changes to the draft Annual Plan 2025/26 prior to publication.

File Number: 453390

Author: Geoff Hamilton, Chief Executive

Attachments: 1. Annual Plan 2025/26 ⇩

2. Schedule of Fees and Charges 2025/26 ⇩

Ordinary Council Meeting Agenda

11 June 2025

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8.2 Setting Rates for 2025-26

1. Purpose

For Council to consider the setting of rates for the 2025-26 financial year.

2. Significance

In accordance with the Council’s Significance and Engagement Policy, this matter has been assessed as being critical to the financial management of the Council. A special consultative process was undertaken prior to the adoption of the Long-Term Plan 2024-34 in September 2024.

Changes made to the Draft Annual Plan and the rates requirement for 2025/26 are not considered sufficiently different from the Long-Term Plan 2024-34, such that further consultation may be required.

3. INTRODUCTION

This report is the final step in the process of being able to set the rates for the 2025-26 financial year following the adoption of the 2024-2034 Long-Term Plan. The rates included in the report are part of the Funding Impact Statement that is included in the 2025-26 Annual Plan.

The rating system comprises general and targeted rates, and specific charges such as the uniform annual general charge and excess water meterage charges.

Approach to Rating

Rates are set and assessed under the Local Government (Rating) Act 2002 on rating units. Some rates are assessed on the value of the land and improvements, or the value of the land alone, as supplied by Quotable Value New Zealand Limited. The current rating valuation is dated 1 September 2023 and is effective from 1 July 2024. These are reviewed every three years.

The objectives of the council’s rating policy are to:

· Spread the incidence of rates as fairly as possible

· Be consistent in charging rates

· Ensure all ratepayers pay their fair share for council services

· Provide the income needs to meet the council’s goals.

The Carterton District Council’s rating system provides for all user charges and other income to be taken into account first, with the rates providing the balance needed to meet council’s objectives.

4. RISK Assessment

Setting of the rates is a requirement of the Local Government Act 2002 (LGA) and the Section 23 of Local Government (Rating) Act 2002 (LGRA). Council is required to set the rates in accordance with these Acts to ensure they are lawful and can be collected from ratepayers. The nature of the resolution recommended to Council is aligned with legal advice.

5. OPTIONS ANALYSIS

Option 1

Pursuant to Section 23(1) of the Local Government (Rating) Act 2002, the Council resolves to set the rates, due dates and penalties regime for the 2025/26 year.

Option 2

Council resolves to not set the rates, due dates and penalties regime for the 2025/26 year and to give Officers guidance on which amendments are needed. An amended timeframe related to setting of rates would be required.

Setting of rates is key for the service provision and the financial management and funding of Council. Following the consideration and adoption of the Long-Term Plan 2024 -2034, this allows the Council to collect the rates required to deliver the service of Council for 2025-26. Not setting the rates would put Council at financial risk.

Recommended Option

This report recommends Option 1 – that Council resolve to set the rates in accordance with the 2025-26 Annual Plan.

6. Next steps

Following the setting of Rates, Council Officers will set the rates within the Council rating system and following 1 July 2025, the first rates assessment will be sent to ratepayers in July 2025.

7. Recommendation

That the Council:

Receives the report:

Pursuant to Sections 23, 24 and 57 of the Local Government (Rating) Act 2002, resolves to set the rates, due dates and penalties regime for the 2025/26 financial year as follows:

All rate amounts stated are GST inclusive.

(a) General rate

A general rate on the capital value of each rating unit in the district.

The general rate is set on a differential basis over three rating categories as follows:

General rates – differential factor
Residential	1.0
Commercial	1.8
Rural	0.8

Where –

· Residential means:

- all rating units used primarily for residential purposes within the residential zone of the Carterton District as depicted in the District Plan

- all rating units located in the commercial and industrial zones of Carterton District, as depicted in the District Plan, that are used primarily for residential purposes

- all rating units associated with utility services (water, telecommunications, etc.) that are located in the urban area.

· Commercial means:

- all rating units in the commercial zone of Carterton District, including the Carterton Character Area, as depicted in the District Plan, and all rating units outside the said commercial zone that have existing use rights or resource consent to undertake commercial land use activities under the Resource Management Act 1991

- all rating units in the industrial zone of Carterton District, as depicted in the District Plan, and all rating units outside the said industrial zone that have existing use rights or resource consent to carry out industrial land use activities under the Resource Management Act 1991.

- Excludes any rating units used primarily for residential purposes

- Includes any rating units within the rural zone of Carterton District, as depicted in the District Plan, holding or exercising existing use rights or resource consent to carry out commercial or industrial land use activities under the Resource Management Act 1991

· Rural means:

- all rating units within the rural zone of Carterton District, as depicted in the District Plan, but excluding those rating units that hold and are exercising existing use rights or resource consent to carry out commercial or industrial land use activities under the Resource Management Act 1991

- all rating units associated with utility services (water, telecommunications, etc) that are located in the rural area.

A General Rate set under section 13(2)(b) Local Government (Rating) Act 2002, on every rating unit on a differential basis as described below:

• a rate of 0.19184 cents in the dollar (including GST) of capital value on every rating unit in the Residential category

• a rate of 0.34531 cents in the dollar (including GST) of capital value on every rating unit in the Commercial category

• a rate of 0.15347 cents in the dollar (including GST) of capital value on every rating unit in the Rural category

(b) Uniform Annual General Charge

A Uniform Annual General Charge on each rating unit in the district to fully fund Governance activities and to fund Community Support activities within the maximum possible under section 21 of the Local Government (Rating) Act 2002.

The Uniform Annual General Charge is calculated as one fixed amount per rating unit, for the rating year 2025/26 this rate will be $1,288.18 (including GST) per rating unit set under section 15(1)(a) Local Government (Rating) Act 2002.

(c ) Targeted rates

Regulatory and planning service rate

A regulatory and planning service rate for regulatory, resource management, and district planning services on every rating unit in the district, calculated on capital value.

A targeted Regulatory and Planning Services Rate of 0.00849 cents per dollar of capital value set under Section 16 Local Government (Rating) Act 2002 on every rating unit in the district.

Urban wastewater rates

A differential targeted rate for the Council’s urban wastewater and treatment and disposal of wastewater services of a fixed amount per separately used or inhabited part of a rating unit in relation to all land in the district to which the Council’s urban wastewater service is provided or available.

The rate applied is as follows:

· A charge per separately used or inhabited part of a rating unit that is able to be connected

· A charge per separately used or inhabited part of a rating unit connected

The Council also sets a rate (pan charge) per water closet or urinal within each separately used or inhabited part of a rating unit after the first one for rating units with more than one water closet or urinal.

For the purposes of this rate:

· ‘Connected’ means the rating unit is connected to the Council’s urban wastewater service directly or through a private drain.

· ‘Able to be connected’ means the rating unit is not connected to the Council’s urban wastewater drain but is within 30 metres of such a drain.

· A separately used or inhabited part of a rating unit used primarily as a residence for one household is treated as not having more than one water closet or urinal.

a. A rate of $635.32 per separately used or inhabited part of a rating unit set under Section 16 Local Government (Rating) Act 2002 for rating units that are not yet connected but are able to be connected to the Council’s urban sewerage reticulation system.

b. a rate of $1,270.64 per separately used or inhabited part of a rating unit set under Section 16 Local Government (Rating) Act 2002 for rating units that are connected to the Council’s urban sewerage reticulation system.

c. a rate of $1,270.64 set under Section 16 Local Government (Rating) Act 2002 for each water closet or urinal after the first in each separately used or inhabited part of a non-residential rating unit connected to Council’s urban sewerage reticulation system.

Waingawa wastewater rates

A targeted rate of a fixed amount on every separately used or inhabited part of a rating unit that is connected to the Waingawa wastewater service.

And

A differential targeted rate on capital value on all properties connected or able to be connected to the Waingawa wastewater service. The rate will be set on a differential basis over two rating categories:

· All rating units located in the Waingawa industrial zone of Carterton District, as depicted in the District Plan, that are used primarily for residential purposes

· All other rating units in the Waingawa industrial zone of Carterton District.

For the purposes of these rates:

· ‘Connected’ means a rating unit that is connected to the reticulated wastewater service.

· ‘Able to be connected’ means a rating unit that can be connected to the wastewater service, but it not, and is a property situated within 30 metres of such a drain.

The purpose of these rates is to fund the operation and maintenance of the Waingawa wastewater service.

a) a targeted Waingawa Sewerage Rate of $219.00 set under Section 16 Local Government (Rating) Act 2002 on every separately used or inhabited part of a rating unit that is connected to the Waingawa Sewerage Service located in the Waingawa industrial zone of Carterton District,

b) a rate of 0.21579 cents per dollar of capital value set under Section 16 Local Government (Rating) Act 2002 on all rating units connected or able to be connected to the Waingawa Sewerage Service, in the Waingawa industrial zone of Carterton District that are not used primarily for residential purposes,

c) a rate of 0.10789 cents per dollar of capital value set under Section 16 Local Government (Rating) Act 2002 on all properties used primarily for residential purposes connected or able to be connected to the Waingawa Sewerage Service located in the Waingawa industrial zone of Carterton District.

Stormwater rate

A stormwater rate on all rating units within the urban area calculated on land value. For the purposes of this rate the ‘urban area’ is rating units:

· Within the residential zone of the Carterton District as depicted in the District Plan,

· Adjacent to the residential zone where stormwater from the property drains to the Council’s urban stormwater system.

o a targeted Stormwater Rate of 0.04078 cents per dollar of land value set under Section 16 Local Government (Rating) Act 2002 on all rating units within the urban area.

Refuse collection and kerbside recycling rate

A refuse collection and kerbside recycling rate for kerbside refuse and recycling collection on every separately used or inhabited part of a rating unit to which the Council’s collection service is provided or available.

(a) a targeted Refuse Collection and Kerbside Recycling Rate of $126.00 set under Section 16 Local Government (Rating) Act 2002 on every separately used or inhabited part of a rating unit where Council provides the service, or the service is available.

Urban water rates

A differential targeted urban water rate of:

· a fixed amount on every separately used or inhabited part of a rating unit that has been fitted with a water meter or meters and is connected to the Council’s urban water supply system.

· of a fixed amount per separately used or inhabited part of a rating unit for rating units that are not yet connected but are able to be connected to the urban water supply.

Additionally, a targeted metered water rate per cubic metre of water supplied, as measured by meter, for water consumed over 225 cubic metres per year. This rate will be invoiced separately from land rates.

For the purposes of the differential targeted rate:

· ‘Connected’ means a rating unit to which water is supplied,

· ‘Able to be connected’ means a rating unit to which water can be, but is not, supplied being a property situated within 100 metres of the water supply.

The purpose of these rates to fund the operation and maintenance of the urban water supply.

(a) a rate of $825.64 set under section 16 Local Government (Rating) Act 2002 on every separately used or inhabited part of a rating unit that has been fitted with a water meter or meters and is connected to the Council’s urban water supply system,

(b) a rate of $412.82 per separately used or inhabited part of a rating unit set under Section 16 Local Government (Rating) Act 2002 for rating units that are not yet connected but are able to be connected to the urban water supply system,

(c) a targeted Metered Water Rate of $2.10 per cubic metre set under section 19(2)(a) Local Government (Rating) Act 2002 for each cubic metre of water supplied, as measured by meter, over 225 cubic metres per year.

(d) A targeted Metered Water Rate of $3.20 per cubic metre set under section 19(2)(a) Local Government (Rating) Act 2002 for each cubic metre of water supplied, for temporary connections for Commercial and Industrial rating units as defined by the differential for General Rate.

Carterton Water Race Systems targeted rates

A targeted rate on a differential basis, calculated on land area, on rating units within the Carrington or Taratahi water race system classified areas as follows:

· Class A land area 200 metres either side of the centreline of the water race

· Class B land area from 200 to 500 metres either side of the centreline of the water race

· Class C land area able to be irrigated from water drawn from natural watercourses fed from the Water Race System, calculated from conditions of the applicable resource consent.

A rural water services rate on every rating unit situated in the Carrington or Taratahi Water Race Classified Areas for provision of the service. The amount is a rate per rating unit. For the purposes of this rate ‘provision of the service’ means the provision of water for stock or domestic use, including where:

· The water race channel passes over the ratepayer’s property

· The water race is piped through the ratepayer’s property

· Water is extracted from the water race on a neighbouring property.

o a targeted Rural Water Race Rate of $311.83 set under Section 16 Local Government (Rating) Act 2002 per rating unit on land situated in the Carrington and Taratahi Water Race System Classified Areas that has provision of the service.

o a targeted Rural Water Race Rate set under Section 16 Local Government (Rating) Act 2002, calculated on land area on rating units within the Carrington and Taratahi Water Race System Classified Areas as follows:

• Class A $36.82683 per hectare

• Class B $ 8.45052 per hectare

• Class C $226.44919 per hectare

where classes are defined in the Funding Impact Statement.

A metered Water Race rate for principally commercial / industrial use – per cubic metre taken - $2.30 per m³.

A metered Water Race rate for principally horticultural use per cubic metre taken - $1.40 per m³.

Waingawa Process Water – a metered Process water rate per cubic metre taken - $1.25 per m³.

Waingawa water rates

A targeted rate of a fixed amount on every separately used or inhabited part of a rating unit that has been fitted with a water meter or meters and is connected to the Waingawa Water Supply service.

For the purposes of this rate:

· ‘Connected’ means a rating unit to which water is supplied.

Additionally, a targeted rate per cubic meter of water supplied, as measured by meter. This rate will be invoiced separately from other rates.

The purpose of these rates is to fund the operation and maintenance of the Waingawa Water Supply service.

(a) a targeted Waingawa Water Rate of $773.11 per separately used or inhabited part of a rating unit set under Section 16 Local Government (Rating) Act 2002 on all rating units that are connected to the Waingawa reticulated water service.

(b) a targeted metered Waingawa Water Rate of $3.22 per cubic metre set under Section 19(2)(b) Local Government (Rating) Act 2002, as measured by meter, for all water supplied to each rating unit which has been fitted with a meter or meters with consumption up to and including 50,000 cubic metres per year and is connected to the Waingawa reticulated water service.

(c) a targeted metered Waingawa Water Rate of $2.78 per cubic metre set under Section 19(2)(b) Local Government (Rating) Act 2002, as measured by meter, for all water supplied to each rating unit with consumption over 50,000 cubic meters per year, which has been fitted with a meter or meters and is connected to the Waingawa reticulated water service.

Economic Development Rate

The economic development rate is primarily used to fund regional and local economic development initiatives.

· a targeted Economic Development Rate of $586.88 per rating unit on all Commercial and Industrial rating units as defined by the differential for General Rate.

(d) Due Dates for Rate Payments (excluding metered water rates)

Pursuant to Section 24 of the Local Government (Rating) Act 2002, that the rates (excluding metered water rates) for the year 1 July 2025 to 30 June 2026 be assessed in four equal instalments with each instalment due on the due date for payment for that instalment set out in table 1 below.

Table 1: due dates and penalty dates for rate payments (excluding metered water rates)

Instalment	Due date for payment	Penalty date
One	20 August 2025	21 August 2025
Two	20 November 2025	21 November 2025
Three	20 February 2026	23 February 2026
Four	20 May 2026	21 May 2026

(e) Due Dates for Metered Water Rate Payments

Pursuant to Section 24 of the Local Government (Rating) Act 2002, that the due dates for metered water rates are as set out in the table below for each reading period for the year 1 July 2025 to 30 June 2026.

Table 2: due dates and penalty dates for metered water rates

Meters read in	Due date	Penalty date
September 2025	31 October 2025	1 November 2025
January 2026	28 February 2026	1 March 2026
March 2026	30 April 2026	1 May 2026
June 2026	31 July 2026	1 August 2026

(f) Penalty Charges (Additional Charges on Unpaid Rates)

Pursuant to Sections 57 and 58(1)(a) of the Local Government (Rating) Act 2002, a penalty of 10% of the amount of each instalment of rates (except metered water rates) remaining unpaid after the relevant due date for payment will be added on the relevant penalty date for the instalment stated in table 1.

Targeted rates for metered water supply will be invoiced separately from other rates. A 10% penalty will be added to any part of the invoiced metered water rates that remain unpaid after the relevant due date stated in table 2 as provided in Sections 57 and 58 (1)(a) Local Government (Rating) Act 2002. The penalty will be added on the relevant penalty date for the instalment stated in table 2.

Pursuant to Sections 57 and 58(1)(b) of the Local Government (Rating) Act 2002, a penalty of 10% will be added on 1 July 2025 to the amount of rates assessed in previous financial years and remaining unpaid as at 30 June 2025 excluding metered water rates.

Pursuant to Sections 57 and 58(1)(b) of the Local Government (Rating) Act 2002, a penalty of 10% will be added on 1 August 2025 to the amount of water meter rates assessed in previous financial years and remaining unpaid as at 31 July 2025.

File Number: 453391

Author: Geoff Hamilton, Chief Executive

Attachments: Nil


AGENDA Ordinary Council Meeting
Date:	Wednesday, 11 June 2025
Time:	9:00 am
Location:	Carterton Events Centre 50 Holloway St Carterton
Mayor R Mark Deputy Mayor S Cretney Cr B Deller Cr R Cherry-Campbell Cr D Williams	Cr S Laurence Cr G Ayling Cr L Newman Cr S Gallon