LGOIMA Request Details: LG2498

Date received: 08/08/2026

Requested information: A request for Council to review the property’s rates increase and provide, under LGOIMA, the information and rationale supporting the increase despite a significant decline in the property’s valuation.

Status: Complete

Date responded: 27/08/2026

Response:

1. The basis and methodology used to calculate the recent rates increase for my property.
   See pages 21-37 of the Annual Plan 2026-27 for the methodology of how Council charges each category of rate - MDC-Annual-Plan-2026_Final-Web.pdf
2. Any policies, models, or formulas applied that explain how rates can increase despite a reduction in property value.

Council rates are not inherently a tax on property value. Property value is often used as a method for distributing part of the rates requirement between properties, but it does not determine how much money a council needs to collect overall.

The distinction is:

• Council first determines how much revenue it needs from rates to fund its activities, after accounting for other revenue such as fees, subsidies and grants.
• It then decides how that rates requirement will be allocated across properties, using the rating tools available under the Local Government (Rating) Act 2002.
• Some rates are based on capital value meaning property value affects a property's share of that particular rate.
• Other rates can be fixed charges, such as a Uniform Annual General Charge, or targeted rates based on factors such as the services provided, location, land use, or other characteristics.
• As a result, an increase/decrease in a property's value does not automatically mean Council receives more/less rates revenue. If every property increased/decreased in value by the same percentage, the relative distribution of a value-based rate would broadly remain unchanged.
• What matters for a value-based rate is generally a property's value relative to other properties, rather than the value in isolation.

 

3.  Documentation or reports used by Council to justify rates increases for the current rating period.

See Annual Plan 2026-27 for how Council intended use of collected rates for the 2026-27 year - link above

4.  Any internal or external advice received regarding the relationship between property valuations and rates setting.

Council has received no advice on this specific matter, aside from following legislative requirements in the Local Government Rating Act 2002.