Part C: Financial information

Funding impact statements

WHOLE OF COUNCIL

  2016/17
AP
$000
2017/18
AP
$000
Variance
to AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 160,913 170,671 9,758  
Targeted rates (other than a targeted rate for water supply) 123,231 126,135 2,904  
Subsidies and grants for operating purposes 8,086 9,601 1,515  
Fees and charges 123,171 134,003 10,832 1
Interest and dividends from investments 11,125 11,294 169  
Local authorities fuel tax, fines, infringement fees, and other receipts 9,178 8,963 (215)  
Total operating funding (A) 435,704 460,667 24,963  
         
Applications of operating funding        
Payments to staff and suppliers 291,914 302,602 10,688 2
Finance costs 25,617 25,420 (197)  
Internal charges and overheads applied - - -  
Other operating funding applications 43,007 45,889 2,882  
Total applications of operating funding (B) 360,538 373,911 13,373  
Surplus (deficit) of operating funding (A - B) 75,166 86,757 11,591  
         
Sources of capital funding        
Subsidies and grants for capital expenditure 32,950 46,313 13,363 3
Development and financial contributions 2,000 2,000 -  
Increase (decrease) in debt 71,263 88,044 16,781  
Gross proceeds from sales of assets 4,600 10,350 5,750  
Lump sum contributions - - -  
Total sources of capital funding (C) 110,813 146,707 35,894  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand 1,922 1,810 (112)  
- to improve the level of service 87,124 79,445 (7,679)  
- to replace existing assets 91,736 101,217 9,481  
Increase (decrease) in reserves 5,197 50,992 45,795 4
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 185,979 233,464 47,485  
Surplus (deficit) of capital funding (C - D) (75,166) (86,757) (11,591)  
Funding balance ((A - B) + (C - D)) - - -  
         
Expenses for this activity grouping include the following depreciation/amortisation charge 101,975 106,417 4,442  

Notes:

  1. The majority of this variance is the recognition of 3rd party revenue related to the contract with Dimension Data to delivery our ICT infrastructure.
  2. This variance is related to one above and is recognising the full contract cost with Dimension Data to delivery our ICT infrastructure.
  3. NZTA funding associated with the one off access to LED street light funding for 2017/18 makes up the majority of this variance.
  4. Capex carry forwards funded from depreciation collected in prior years.  This is a result of the 2017/18 Capital programme being affected by prior year budgets being delivered in 2017/18 and some of the budgets in this Funding Impact Statement potentially being delivered in 2018/19.

1.1 GOVERNANCE, INFORMATION AND ENGAGEMENT

   2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 17,528 18,122 594  
Targeted rates (other than a targeted rate for water supply) - - -  
Subsidies and grants for operating purposes - - -  
Fees and charges 889 536 (353) 1
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 18,417 18,658 241  
         
Applications of operating funding        
Payments to staff and suppliers 11,170 11,265 95  
Finance costs 16 15 (1)  
Internal charges and overheads applied 7,179 7,309 130  
Other operating funding applications 10 10 -  
Total applications of operating funding (B) 18,375 18,599 224  
Surplus (deficit) of operating funding (A - B) 42 59 17  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt 74 (59) (133)  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 74 (59) (133)  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service - - -  
- to replace existing assets 116 - (116)  
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 116 - (116)  
Surplus (deficit) of capital funding (C - D) (42) (59) (17)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 42 59 17  

Notes:

  1. The revenue cost recovery for elections conducted on behalf of other local athorities and boards, for example Greater Wellington Regional Council and Capital and Coast Health Board is not present in 2017/18.

1.2 MĀORI AND MANA WHENUA PARTNERSHIPS

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 295 300 5  
Targeted rates (other than a targeted rate for water supply) - - -  
Subsidies and grants for operating purposes - - -  
Fees and charges - - -  
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 295 300 5  
         
Applications of operating funding - - -  
Payments to staff and suppliers 267 272 5  
Finance costs 1 1 -  
Internal charges and overheads applied 15 15 -  
Other operating funding applications 10 10 -  
Total applications of operating funding (B) 293 298 5  
Surplus (deficit) of operating funding (A - B) 2 2 -  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt (2) (2) -  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) (2) (2) -  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service - - -  
- to replace existing assets - - -  
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) - - -  
Surplus (deficit) of capital funding (C - D) (2) (2) -  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 2 2 -  

2.1 GARDENS, BEACHES AND GREEN OPEN SPACES

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 33,822 35,994 2,172  
Targeted rates (other than a targeted rate for water supply) - - -  
Subsidies and grants for operating purposes 636 671 35  
Fees and charges 1,465 1,825 360 1
Internal charges and overheads recovered 5,203 5,287 84  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 41,126 43,777 2,651  
         
Applications of operating funding        
Payments to staff and suppliers 19,718 20,806 1,088 2
Finance costs 1,984 2,443 459  
Internal charges and overheads applied 12,410 13,528 1,118  
Other operating funding applications 100 115 15  
Total applications of operating funding (B) 34,212 36,892 2,680  
Surplus (deficit) of operating funding (A - B) 6,914 6,886 (29)  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions 183 183 -  
Increase (decrease) in debt (3,426) (2,932) 495  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) (3,243) (2,749) 495  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service 1,959 50 (1,909) 3
- to replace existing assets 1,712 4,087 2,375 3
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 3,671 4,137 466  
Surplus (deficit) of capital funding (C - D) (6,914) (6,886) 29  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 7,264 7,058 (206)  

Notes:

  1. This is a transfer of the Waterfront public space management revenue from activity statement 10.1 Organisational (page 78).
  2. This variance has a few components - $200k for the demolition of the Kilbirnie Bowls club will and additional costs of $200k for the implementation of Living Wage to increase to $20.20 to staff and the associated relativity along with other inflationary increases.
  3. Major investment in the Lyall Bay resilience programme - stage two will be implemented in 2017/18, which will involve relocating the surfers corner carpark and implementing some erosion preventing measures.

2.2 WASTE REDUCTION AND ENERGY CONSERVATION

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 778 982 204  
Targeted rates (other than a targeted rate for water supply) - - -  
Subsidies and grants for operating purposes - - -  
Fees and charges 13,320 13,632 312 1
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 14,098 14,614 516  
         
Applications of operating funding        
Payments to staff and suppliers 12,492 12,786 294 2
Finance costs 751 665 (86)  
Internal charges and overheads applied 78 544 466 3
Other operating funding applications 383 210 (173)  
Total applications of operating funding (B) 13,704 14,205 501  
Surplus (deficit) of operating funding (A - B) 394 409 15  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt 344 1,662 1,318  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 344 1,662 1,318  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service 65 - (65)  
- to replace existing assets 673 2,071 1,398 4
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 738 2,071 1,333  
Surplus (deficit) of capital funding (C - D) (394) (409) (15)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 394 409 15  

Notes:

  1. This variance is driven out of additional revenue for waste operations.
  2. Inflationary changes associated with the running of waste operations, which includes the southern landfill, domestic recycling and other waste reducing activities.
  3. Organisational overheads change from year to year. There has been an increase to this activity due to a change in methodology which shows a truer cost of delivering our services.
  4. $1.4m additional spend associated with the purchase of additional carbon credits. This is a two fold variance, reflected both in increased volumes and an increased price of the carbon credits.

2.3 WATER

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties - - -  
Targeted rates (other than a targeted rate for water supply) 40,257 41,713 1,456  
Subsidies and grants for operating purposes - - -  
Fees and charges 35 35 -  
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 40,292 41,748 1,456  
         
Applications of operating funding        
Payments to staff and suppliers 23,369 24,257 888 1
Finance costs 2,104 2,039 (65)  
Internal charges and overheads applied 1,952 1,912 (40)  
Other operating funding applications - - -  
Total applications of operating funding (B) 27,425 28,208 783  
Surplus (deficit) of operating funding (A - B) 12,867 13,540 673  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions 671 671 -  
Increase (decrease) in debt 1,377 1,319 (58)  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 2,048 1,990 (58)  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand 538 501 (37)  
- to improve the level of service 3,375 4,747 1,372 2
- to replace existing assets 11,002 10,282 (720) 2
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 14,915 15,530 615  
Surplus (deficit) of capital funding (C - D) (12,867) (13,540) (673)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 12,867 13,540 673  

Notes:

  1. This variance is driven by increases to the bulk water charges from Greater Wellington Regional Council (GWRC) up $460k and property rates up $170k.
  2. Major investment in the city’s resilience will include implementing the Prince of Wales 35 million litre reservoir. $2.1m will be budgeted in 2017/18 with further investment over the three years of the project.

2.4 WASTEWATER

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties - - -  
Targeted rates (other than a targeted rate for water supply) 39,112 39,540 428  
Subsidies and grants for operating purposes - - -  
Fees and charges 1,244 1,293 49  
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 40,356 40,833 477  
         
Applications of operating funding        
Payments to staff and suppliers 20,623 21,123 500 1
Finance costs 3,833 3,427 (406)  
Internal charges and overheads applied 5,254 5,166 (88)  
Other operating funding applications - - -  
Total applications of operating funding (B) 29,710 29,716 6  
Surplus (deficit) of operating funding (A - B) 10,646 11,117 471  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions 549 549 -  
Increase (decrease) in debt 40 3,826 3,786  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 589 4,375 3,786  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand 228 375 147  
- to improve the level of service 316 2,801 2,485 2
- to replace existing assets 10,691 12,316 1,625 2
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 11,235 15,492 4,257  
Surplus (deficit) of capital funding (C - D) (10,646) (11,117) (471)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 13,887 14,470 583  

Notes:

  1. A reduction in wastewater treatment plant running costs of $500k has been reprioritised to network maintenance of $340k. The remaining difference is driven by increases to property rates $400k and general inflationary changes.
  2. Investment in the wastewater network including increased capacity for projects on Taranaki Street of $4.2m, Dixon Street of $800k and the Karori western treatment plant outfall pipeline upgrade of $830k.

2.5 STORMWATER

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties - - -  
Targeted rates (other than a targeted rate for water supply) 18,012 17,986 (26)  
Subsidies and grants for operating purposes 125 131 6  
Fees and charges 10 10 -  
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 18,147 18,127 (20)  
         
Applications of operating funding        
Payments to staff and suppliers 7,018 6,993 (25)  
Finance costs 2,890 2,707 (183)  
Internal charges and overheads applied 2,000 1,938 (62)  
Other operating funding applications - - -  
Total applications of operating funding (B) 11,908 11,638 (270)  
Surplus (deficit) of operating funding (A - B) 6,239 6,489 250  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions 58 58 -  
Increase (decrease) in debt 723 874 151  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 781 932 151  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand 237 236 (1)  
- to improve the level of service 4,550 4,524 (26)  
- to replace existing assets 2,233 2,661 428 1
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 7,020 7,421 401  
Surplus (deficit) of capital funding (C - D) (6,239) (6,489) (250)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 6,239 6,489 250  

Notes:

  1. A stormwater upgrade of $2.2m is being carried out in Kilbirnie. Stage 1 to be completed in 2017/18 is the detailed design and construction of the pipeline.

2.6 CONSERVATION ATTRACTIONS

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 6,989 6,970 (19)  
Targeted rates (other than a targeted rate for water supply) - - -  
Subsidies and grants for operating purposes - - -  
Fees and charges - - -  
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 6,989 6,970 (19)  
         
Applications of operating funding        
Payments to staff and suppliers 216 187 (29)  
Finance costs 787 721 (66)  
Internal charges and overheads applied 275 - (275)  
Other operating funding applications 3,919 4,303 384  
Total applications of operating funding (B) 5,197 5,211 14  
Surplus (deficit) of operating funding (A - B) 1,792 1,759 (33)  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt (975) (918) 57  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) (975) (918) 57  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service - - -  
- to replace existing assets 817 841 24  
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 817 841 24  
Surplus (deficit) of capital funding (C - D) (1,792) (1,759) 33  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 1,792 1,759 (33)  

3.1 CITY PROMOTIONS AND BUSINESS SUPPORT

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 4,377 4,982 605  
Targeted rates (other than a targeted rate for water supply) 14,713 15,253 540  
Subsidies and grants for operating purposes 1,051 2,090 1,039 1
Fees and charges 14,369 13,587 (782) 2
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 34,510 35,912 1,402  
         
Applications of operating funding        
Payments to staff and suppliers 21,216 18,870 (2,346) 3
Finance costs 1,565 1,771 206  
Internal charges and overheads applied 754 1,230 476  
Other operating funding applications 16,763 20,013 3,250 3
Total applications of operating funding (B) 40,298 41,884 1,586  
Surplus (deficit) of operating funding (A - B) (5,788) (5,972) (184)  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt 12,799 10,988 (1,811)  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 12,799 10,988 (1,811)  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service 5,252 2,777 (2,475) 4
- to replace existing assets 1,759 2,239 480 4
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 7,011 5,016 (1,995)  
Surplus (deficit) of capital funding (C - D) 5,788 5,972 184  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 1,787 1,628 (159)  

Notes:

  1. Increased internal grants for the Wellington Convention Centre project, which is planned to commence construction in 2017/18.
  2. Shifting Convention Centre grants from Fees and Charges to Subsidies and Grants for operating purposes offset by increases to Wellington Convention Centre and Venues revenue increase.
  3. Recoding the $3m City Growth Fund from Payments to staff and suppliers to Other operating funding applications.
  4. There has been a delay to the Convention Centre project, this project is now planned to commence in 2017/18 utilising previous years underspends and 2017/18 budget.

4.1 ARTS AND CULTURE ACTIVITIES

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 14,090 14,272 182  
Targeted rates (other than a targeted rate for water supply) 5,540 5,599 59  
Subsidies and grants for operating purposes 494 924 430 1
Fees and charges 588 599 11  
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 20,712 21,394 682  
         
Applications of operating funding        
Payments to staff and suppliers 4,723 5,195 472 2
Finance costs 368 260 (108)  
Internal charges and overheads applied 1,180 1,208 28  
Other operating funding applications 13,607 14,030 423 2
Total applications of operating funding (B) 19,878 20,693 815  
Surplus (deficit) of operating funding (A - B) 834 701 (133)  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt 8,440 557 (7,883)  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 8,440 557 (7,883)  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service 9,272 1,247 (8,025) 3
- to replace existing assets 2 11 9  
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 9,274 1,258 (8,016)  
Surplus (deficit) of capital funding (C - D) (834) (701) 133  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 834 867 33  

Notes:

  1. Additional funding of $500k for a major winter cultural event has been offset by grants and revenue to make it rates neutral.
  2. Increased funding of $170k for the Royal New Zealand Ballet for temporary accommodation at Te Whaea while the St James Theatre is earthquake strengthened as well as $250k additional funding for the Wellington Museums Trust to help with inflation and Living Wage increases.
  3. There has been a delay to the Movie Museum project, this project is now planned to commence in 2017/18 utilising previous years underspends and 2017/18 budget.

5.1 RECREATION PROMOTION AND SUPPORT

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 25,994 27,963 1,969  
Targeted rates (other than a targeted rate for water supply) 1,107 1,325 218  
Subsidies and grants for operating purposes 204 187 (17)  
Fees and charges 11,599 11,523 (76)  
Internal charges and overheads recovered 1,136 1,192 56  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 40,040 42,190 2,150  
         
Applications of operating funding        
Payments to staff and suppliers 18,870 19,955 1,085 1
Finance costs 3,795 3,330 (465)  
Internal charges and overheads applied 9,058 10,336 1,278  
Other operating funding applications 678 696 18  
Total applications of operating funding (B) 32,401 34,317 1,916  
Surplus (deficit) of operating funding (A - B) 7,639 7,873 234  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - 50 50  
Development and financial contributions - - -  
Increase (decrease) in debt (822) 672 1,494  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) (822) 722 1,544  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service 2,541 2,502 (39)  
- to replace existing assets 4,276 6,093 1,817 2
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 6,817 8,595 1,778  
Surplus (deficit) of capital funding (C - D) (7,639) (7,873) (234)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 7,639 7,873 234  

Notes:

  1. There has been a $500k increase to the cost to running our swimming pools, as well as a $480k increase for the implementation of the Living Wage incresase to $20.20 to staff and the associated relativity.
  2. $4.5m for the refresh of the RA Vance stand at the Basin Reserve along with $2.2m for the renewal and upgrade of the Karori swimming pool in 2017/18, plus $530k for playground renewals, including the new Wakefield Park Playground.

5.2 COMMUNITY SUPPORT

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 24,737 24,653 (84)  
Targeted rates (other than a targeted rate for water supply) 4,457 4,624 167  
Subsidies and grants for operating purposes 934 937 3  
Fees and charges 19,432 24,042 4,610 1
Internal charges and overheads recovered 1,125 917 (208)  
Local authorities fuel tax, fines, infringement fees, and other receipts 547 516 (31)  
Total operating funding (A) 51,232 55,689 4,457  
         
Applications of operating funding        
Payments to staff and suppliers 26,236 26,821 585 2
Finance costs (1,600) (1,983) (383)  
Internal charges and overheads applied 12,967 11,592 (1,375)  
Other operating funding applications 4,632 4,902 270 3
Total applications of operating funding (B) 42,235 41,332 (903)  
Surplus (deficit) of operating funding (A - B) 8,997 14,357 5,360  
         
Sources of capital funding        
Subsidies and grants for capital expenditure 18,082 11,790 (6,292)  
Development and financial contributions - - -  
Increase (decrease) in debt 24,647 (397) (25,044)  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 42,729 11,393 (31,336)  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand 919 694 (225)  
- to improve the level of service 25,706 7,641 (18,065) 4
- to replace existing assets 7,019 5,625 (1,394) 4
Increase (decrease) in reserves 18,082 11,790 (6,292)  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 51,726 25,750 (25,976)  
Surplus (deficit) of capital funding (C - D) (8,997) (14,357) (5,360)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 15,504 17,259 1,755  

Notes:

  1. Additional revenue for City Housing - the revenue from the City Housing will change year to year while the Housing Upgrade programme is being completed and stock comes on and offline.
  2. This variance is driven out of $290k additional costs for the implementation of the Living Wage increase to $20.20, the associated relativity and an increase in property rates of $220k.
  3. This variance is a result of a $750k one off grant to Toitu Poneke for a sports hub at Kilbirnie park in 2016/17 and a $870k one off grant for the Karori Events Centre in 2017/18.
  4. The large reduction in capital expenditure is associated with the reduction in spend for both the Arlington City Housing stage two and for the Johnsonville Library upgrade, both of these projects will look to utilise underspends from prior years to complete the required work in 2017/18.

5.3 PUBLIC HEALTH AND SAFETY

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 10,099 11,765 1,666  
Targeted rates (other than a targeted rate for water supply) - - -  
Subsidies and grants for operating purposes - - -  
Fees and charges 4,082 4,151 69  
Internal charges and overheads recovered 676 687 11  
Local authorities fuel tax, fines, infringement fees, and other receipts 39 39 -  
Total operating funding (A) 14,896 16,642 1,746  
         
Applications of operating funding        
Payments to staff and suppliers 9,011 9,917 906 1
Finance costs 93 128 35  
Internal charges and overheads applied 4,988 5,767 779  
Other operating funding applications 109 54 (55)  
Total applications of operating funding (B) 14,201 15,866 1,665  
Surplus (deficit) of operating funding (A - B) 695 776 81  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt 1,315 1,354 39  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 1,315 1,354 39  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service 739 44 (695) 2
- to replace existing assets 1,271 2,086 815 2
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 2,010 2,130 120  
Surplus (deficit) of capital funding (C - D) (695) (776) (81)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 695 776 81  

Notes:

  1. Additional funding of $350k for the Wellington Regional Emergency Management Office has been included in the 2017/18 Annual Plan as well as $240k of additional costs to deliver on the changes brought about by the Food Act 2014 which were implemented in the 2016/17 Annual Plan.
  2. Variance driven out of changes to the facilities management contract and changes to the facilities renewal programme. 

6.1 URBAN PLANNING, HERITAGE AND PUBLIC SPACES DEVELOPMENT

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 7,622 7,632 10  
Targeted rates (other than a targeted rate for water supply) - - -  
Subsidies and grants for operating purposes - - -  
Fees and charges 20 21 1  
Internal charges and overheads recovered 408 42 (366)  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 8,050 7,695 (355)  
         
Applications of operating funding        
Payments to staff and suppliers 4,524 4,137 (387) 1
Finance costs 14 14 -  
Internal charges and overheads applied 2,201 2,483 282  
Other operating funding applications 1,300 1,050 (250) 2
Total applications of operating funding (B) 8,039 7,684 (355)  
Surplus (deficit) of operating funding (A - B) 11 11 -  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt 7,942 141 (7,801)  
Gross proceeds from sales of assets 2,600 3,250 650  
Lump sum contributions - - -  
Total sources of capital funding (C) 10,542 3,391 (7,151)  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service 9,349 1,683 (7,666) 3
- to replace existing assets 1,204 1,719 515 3
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 10,553 3,402 (7,151)  
Surplus (deficit) of capital funding (C - D) (11) (11) -  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 11 11 -  

Notes:

  1. Reduction as a result of planning work for Te Aro regeneration and Kent and Cambridge Terraces along with an increases to the Urban Activation Fund were all included in 2016/17 these increases will not be ongoing into 2017/18.
  2. Built Heritage Incentive Grant was increased to a higher level in 2016/17. This increase was not carried into 2017/18, however an underspend in this fund in 2016/17 may be utilised in 2017/18.
  3. Projects including Lombard Lane, Site 10 public space (Waterfront),  funding for Cable Car Lane and Karori town centre upgrade were all planned for 2016/17, Garrett/Swan Lane,  Lukes Lane and the Plimmer Steps are planned for upgrade in 2017/18.

6.2 BUILDING AND DEVELOPMENT CONTROL

  2017/18
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 8,685 8,705 20  
Targeted rates (other than a targeted rate for water supply) - - -  
Subsidies and grants for operating purposes - - -  
Fees and charges 11,942 12,922 980 1
Internal charges and overheads recovered 342 - (342)  
Local authorities fuel tax, fines, infringement fees, and other receipts 24 24 -  
Total operating funding (A) 20,993 21,651 658  
         
Applications of operating funding        
Payments to staff and suppliers 12,481 13,254 773 1
Finance costs 3 3 -  
Internal charges and overheads applied 8,224 8,114 (110)  
Other operating funding applications 135 135 -  
Total applications of operating funding (B) 20,843 21,506 663  
Surplus (deficit) of operating funding (A - B) 150 145 (5)  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt 2,891 17,227 14,336  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 2,891 17,227 14,336  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service 3,041 17,372 14,331 2
- to replace existing assets - - -  
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 3,041 17,372 14,331  
Surplus (deficit) of capital funding (C - D) (150) (145) 5  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 150 145 (5)  

Notes:

  1. There have been changes that have resulted in increased cost and revenue in the Building Control and Facilitiation (building consents), these are mainly driven by providing consenting service to Auckland Council and changes to the Swimming Pool act requiring more inspections.
  2. Resilience projects commencing in 2017/18 included the Earthquake strengthening of the Town Hall $13.4m and St James Theatre $500k, both of these projects will be utilising underspends from prior years.

7.1 TRANSPORT

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 35,761 37,626 1,865  
Targeted rates (other than a targeted rate for water supply) 33 95 62  
Subsidies and grants for operating purposes 4,442 4,576 134  
Fees and charges 1,960 1,996 36  
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - -  
Total operating funding (A) 42,196 44,293 2,097  
         
Applications of operating funding        
Payments to staff and suppliers 13,409 13,842 433 1
Finance costs 5,288 5,232 (56)  
Internal charges and overheads applied 7,106 6,742 (364)  
Other operating funding applications 1,260 260 (1,000) 2
Total applications of operating funding (B) 27,063 26,076 (987)  
Surplus (deficit) of operating funding (A - B) 15,133 18,217 3,084  
         
Sources of capital funding        
Subsidies and grants for capital expenditure 14,868 34,473 19,605  
Development and financial contributions 539 539 -  
Increase (decrease) in debt 10,017 6,721 (3,296)  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 25,424 41,733 16,309  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - 4 4  
- to improve the level of service 15,602 18,793 3,191 3
- to replace existing assets 24,955 41,153 16,198 3
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 40,557 59,950 19,393  
Surplus (deficit) of capital funding (C - D) (15,133) (18,217) (3,084)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 24,453 26,600 2,147  

Notes:

  1. Additional costs associated with the Road Maintenance and Street Lighting activities along with general inflationary increases.
  2. Funding for the Wellington Cable Car was paid out in 2016/17 and this is not an ongoing expenditure item.
  3. NZTA funding associated with the one off access to LED street light funding for 2017/18 makes up the majority of this variance.

7.2 PARKING

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties (14,370) (14,875) (505)  
Targeted rates (other than a targeted rate for water supply) - - -  
Subsidies and grants for operating purposes - - -  
Fees and charges 20,777 21,385 608 1
Internal charges and overheads recovered - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts 7,518 7,334 (184)  
Total operating funding (A) 13,925 13,844 (81)  
         
Applications of operating funding        
Payments to staff and suppliers 10,765 10,970 205  
Finance costs 584 4 (580)  
Internal charges and overheads applied 2,523 2,816 293  
Other operating funding applications 1 1 -  
Total applications of operating funding (B) 13,873 13,791 (82)  
Surplus (deficit) of operating funding (A - B) 52 53 1  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt 444 244 (200)  
Gross proceeds from sales of assets - - -  
Lump sum contributions - - -  
Total sources of capital funding (C) 444 244 (200)  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service 496 113 (383) 2
- to replace existing assets - 184 184  
Increase (decrease) in reserves - - -  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 496 297 (199)  
Surplus (deficit) of capital funding (C - D) (52) (53) (1)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 52 53 1  

Notes:

  1. Increased revenue is a result of the new central city parking zone, updating parking fees from $4.00 per hour to $4.50 per hour. This has been implemented to reduce pressure on these prime parking locations.
  2. The finalisation of the parking sensors roll out was completed in 2016/17 and this project does not continue into 2017/18.

10.1 ORGANISATIONAL

  2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes
Sources of operating funding        
General rates, uniform annual general charges, rates penalties (15,494) (14,420) 1,074  
Targeted rates (other than a targeted rate for water supply) - - -  
Subsidies and grants for operating purposes 200 85 (115)  
Fees and charges 32,564 37,740 5,176 1
Internal charges and overheads recovered 33,829 31,528 (2,301)  
Local authorities fuel tax, fines, infringement fees, and other receipts 1,050 1,050 -  
Total operating funding (A) 52,149 55,983 3,834  
         
Applications of operating funding        
Payments to staff and suppliers 75,809 81,951 6,142 2
Finance costs 3,141 4,643 1,502  
Internal charges and overheads applied (35,445) (41,047) (5,602)  
Other operating funding applications 100 100 -  
Total applications of operating funding (B) 43,605 45,647 2,042  
Surplus (deficit) of operating funding (A - B) 8,544 10,336 1,792  
         
Sources of capital funding        
Subsidies and grants for capital expenditure - - -  
Development and financial contributions - - -  
Increase (decrease) in debt 5,435 46,767 41,332  
Gross proceeds from sales of assets 2,000 7,100 5,100 3
Lump sum contributions - - -  
Total sources of capital funding (C) 7,435 53,867 46,432  
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - -  
- to improve the level of service 4,861 15,151 10,290 4
- to replace existing assets 24,006 9,849 (14,157) 4
Increase (decrease) in reserves (12,888) 39,203 52,091  
Increase (decrease) in investments - - -  
Total applications of capital funding (D) 15,979 64,203 48,224  
Surplus (deficit) of capital funding (C - D) (8,544) (10,336) (1,792)  
Funding balance ((A - B) + (C - D)) - - -  
Expenses for this activity grouping include the following depreciation/amortisation charge 8,363 7,419 (944)  

Notes:

  1. The majority of this variance is the recognition of 3rd party revenue related to the contract with Dimension Data to delivery our ICT infrastructure.
  2. This variance is related to one above and is recognising the full contract cost with Dimension Data to delivery our ICT infrastructure.
  3. Proceeds from the sale of assets includes Civic Campus asset sales to partially fund the earthquake strengthening of the Town Hall.<
  4. Investment in the Civic Campus refresh continues in 2017/18 along with a number of commercial property renewals.

Funding Impact Statement – Rating Mechanisms

Rates

Rates are a property tax to fund local government activities. Rates are assessed under the Local Government (Rating) Act 2002 (the Act) on rating units in the Rating Information Database. Where rates requirements are allocated based on property value, the capital value of the property as assessed by the Council’s valuation services provider will apply. The latest city-wide revaluation was carried out as at 1 September 2015. This revaluation remains effective for the 2017/18 rating year, except where subsequent maintenance valuations have been required under valuation rules or the Council’s rating policies.

City-wide revaluations are performed every three years. The next city-wide revaluation will be carried out as at 1 September 2018 and will be effective for the 2019/20 rating year and the two consecutive rating years (subject again to subsequent maintenance valuations).

Policy objective:

General Rates

General rates are set under section 13 of the Act on all rateable rating units in the City of Wellington.

The Council proposes to set a general rate based on the capital value of each rating unit within the city.

The general rate will be set on a differential basis, based on land use. All rating units (or part thereof) will be classified for the purposes of general rates within one of the following rating differentials.

Differential Rating Categories

Base differential

This includes:

a) Separately rateable land used solely for one or more household units; excluding those properties that provide short stay (28 days or less) commercial accommodation for which a tariff is charged
b) Vacant land zoned residential
c) Rural land (including farmland and lifestyle blocks) under the District Plan that is administered by the Council, but excluding any rating unit that is used for rural industrial purposes
​d) Separately-rateable land occupied by a charitable organisation, which is deemed by the Council to be used exclusively or principally for sporting, recreation or community purposes and that does not generate any private pecuniary profit.

This category has a general rate differential rating factor of 1.0.

Commercial, Industrial and Business differential

This includes:

a) Separately-rateable land used for a commercial or industrial purpose
b) Vacant land zoned commercial, industrial or rural industrial under the District Plan administered by the Council
c) Land used for offices, administrative and/or associated functions
d) Land used for commercial accommodation for which a tariff is charged and where the principal purpose is the provision of short stay (28 days or less) accommodation
e) Business-related premises used principally for private pecuniary benefit
f) Utility networks
g) Any property not otherwise categorised within the Base Differential.

This category has a general rate differential rating factor of 2.8.

Differential rating category conditions

Differential rating 2.8:1 Commercial: Base

In any other case, the General rate differential is determined by principal use.

Uniform Annual General Charge

The Council does not assess a uniform annual general charge.

NON-RATEABLE LAND

Non-Rateable

Includes any land referred to in Part 1, Schedule 1 of the Act. This land is non-rateable with the exception of targeted rates solely for sewerage and water where the service is provided.

50 Percent Non-Rateable

Includes all land referred to in Part 2, Schedule 1 of the Act. This land is 50 percent non-rateable in respect of the rates that apply, with the exception of targeted rates for sewerage and water for which the land is fully rateable if the service is provided.

Targeted Rates

Targeted rates are set under section 16 of the Act. The Council has not adopted any lump sum contribution schemes under part 4A of the Act in respect of its targeted rates, and will not accept lump sum contributions in respect of any targeted rate.

Sewerage rate

Targeted sewerage rates are to be apportioned 60 percent:40 percent of rates between properties incorporated under the Base differential and the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy. This rate pays for the cost of the provision of the sewerage treatment facilities for the city.

For the purposes of these rates the sewerage collection and disposal service is treated as being provided if the rating unit is connected to a public sewerage drain (either directly or indirectly), irrespective of whether the property is considered fully rateable or is mandatory non-rateable or 50 percent non-rateable under Schedule 1 of the Act.

The targeted Sewerage rate is calculated as follows:

For rating units incorporated in the Commercial, Industrial and Business differential:

A rate per dollar of capital value on all rating units connected to a public sewerage drain, to collect 40 percent of the required rates funding, after having deducted the total dollar amount budgeted to be collected through Trade Waste Charges (excluding consent fees).

For rating units incorporated in the Base differential:

A fixed amount per annum per rating unit for administration, plus a rate per dollar of capital value on all rating units connected to a public sewerage drain, to collect 60 percent of the required rate funding.

Water rate

A targeted rate for water is to be apportioned with the aim of achieving a 60 percent:40 percent split between properties incorporated under the Base differential and the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy.

This rate pays for water collection and treatment facilities, the water distribution network and water conservation for the city.

This rate is set on all rating units serviced by a water connection.

For the purposes of these rates, the water service is treated as being provided if the rating unit is connected to the public water supply (either directly or indirectly), irrespective of whether the property is considered fully rateable or is mandatorily non-rateable or 50 percent non-rateable under Schedule 1 or 2 of the Local Government (rating) Act 2002 (the Act).

The targeted Water rate is calculated as follows:

For rating units incorporated in the Commercial, Industrial and Business differential, either:

a) a consumption unit rate per cubic metre of water used for all rating units connected to the public water supply with a water meter installed, plus a fixed amount per annum per rating unit.

Or

b) a rate per dollar of capital value on all rating units connected to the public water supply, without a water meter installed.

For rating units rated incorporated in the Base differential, either:

a) a consumption unit rate per cubic metre of water used for all rating units connected to the public water supply with a water meter installed, plus a fixed amount per annum per rating unit.

Or

b) a fixed amount per annum per rating unit for administration, plus a rate per dollar of capital value on all rating units connected to the public water supply without a water meter installed, to collect the required Base differential contribution.

Stormwater Network rate

A targeted stormwater rate is to be apportioned 77.5 percent to the non-rural rating units incorporated under the Base differential and 22.5 percent to the non-rural rating units incorporated under the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy.

This rate pays for the cost of the provision of the stormwater collection/disposal network for the city.

Properties classified as rural under the Council’s District Plan are excluded from the liability of this rate.

The targeted Stormwater network rate is calculated as follows:

For non-rural rating units incorporated in the Commercial, Industrial and Business differential:

For non-rural rating units incorporated in the Base differential:

Commercial, Industrial and Business Sector targeted rate

This rate pays for activities where the Council’s Revenue and Financing Policy identifies that the benefit can be attributed to the commercial, industrial and business sector and where the activity is not incorporated in other service related targeted rates. This incorporates the following:

This rate is assessed on all properties incorporated in the commercial, industrial and business sector and is calculated on a rate per dollar of rateable capital value.

Base Sector targeted rate

This rate pays for activities where the Council’s Revenue and Financing Policy identifies that the benefit can be attributed to properties incorporated under the Base differential rating category (incorporating residential ratepayers). This incorporates the following activities:

This rate is assessed on all properties incorporated under the Base differential rating category and is calculated on a rate per dollar of rateable capital value.

Downtown targeted rate

This rate pays for tourism promotion and retail support (free weekend parking). It also pays for:

This rate is assessed on all commercial, industrial and business properties in the downtown area and is calculated on a rate per dollar of rateable capital value. For the purposes of this rate, the downtown area refers to the area as described by the Downtown Area map as follows:

Downtown targeted rate map.

Tawa Driveways targeted rate

This rate pays for the maintenance of a specified group of residential access driveways in the suburb of Tawa, overseen by the Council. This rate is assessed on a specific group of rating units that have shared access driveway that are maintained by Council in the former Tawa Borough at a fixed amount per annum per rating unit.

Marsden Village targeted rate

This rate is collected by the Council on behalf of the Marsden Village Association on all commercial, industrial and business properties in the Marsden shopping village (see map below) and is calculated on a rate per dollar of capital value to fund the maintenance of the area.

Marsden Village targeted rate map.

Miramar Business Improvement District targeted rate

This rate is set by Council to fund the Business Improvement District activities of Enterprise Miramar Peninsula Incorporated.

The category of land for which this rate is set is on all rating units within the Miramar Business Improvement District (see map) that are subject to the “commercial, industrial and business” differential, but excluding any rating unit that is a substation or used by local or central government for a non-business purpose.

Liability for this rate is calculated as a fixed amount per rating unit, plus a rate per dollar of capital value for any capital value over $1 million per rating unit.

Miramar Business Improvement District targeted rate map.

Khandallah Business Improvement District targeted rate

This rate is set by the Council to fund the Business Improvement District activities of the Khandallah Business Association Incorporated.

The category of land for which this rate is set is on all rating units within the Khandallah Business Improvement District (see map) that are subject to the “commercial, industrial and business” differential, but excluding any rating unit that is a substation.

Liability for this rate is calculated as a rate per dollar of rateable capital value.

Khandallah Business Improvement District targeted rate map.

Kilbirnie Business Improvement District targeted rate

This rate is set by the Council to fund the Business Improvement District activities of the Kilbirnie Business Network.

The category of land for which this rate is set is on all rating units within the Kilbirnie Business Improvement District (see map) that are subject to the “commercial, industrial and business” differential, but excluding any rating unit that is a substation.

Liability for this rate is calculated as a fixed amount per rating unit, plus a rate per dollar of rateable capital value of any capital value over $1,000,000.

Kilbirnie Business Improvement District targeted rate map.

Tawa Business Improvement District targeted rate

This rate is set by the Council to fund the Business Improvement District activities of the Tawa Business Network. The rate is set on all commercially rated properties in the Tawa Business Improvement District area (see map) that are subject to the “commercial, industrial and business” differential, but excluding any rating unit that is not connected to a service.

Liability for this rate will be calculated as a fixed amount per rating unit, plus a rate per dollar of rateable capital value for any capital value over $350,000 per rating unit.

Tawa Business Improvement District targeted rate map.

Indicative rates

The following table shows the indicative residential and commercial property rates inclusive of GST for a selection of billing categories, based on the 2017/18 budget.

Indicative residential property rates (for properties without a water meter)   Indicative suburban commercial property rates (for properties with a water meter). This excludes water by consumption which is charged on actual usage.   Indicative downtown commercial property rates (for properties with a water meter). This excludes water by consumption which is charged on actual usage.
Capital Values

$
2017/18 Rates

$
Increase
over
2016/17
%*
  Capital
Values

$
2017/18
Rates

$
Increase
over
2016/17
%*
  Capital
Values

$
2017/18
Rates

$
Increase
over
2016/17
%*
200,000 1,156 3.05%   1,000,000 10,291 3.73%   1,000,000 12,418 3.49%
300,000 1,588 3.14%   1,250,000 12,829 3.73%   1,250,000 15,488 3.49%
400,000 2,019 3.19%   1,500,000 15,367 3.73%   1,500,000 18,558 3.49%
500,000 2,451 3.23%   1,750,000 17,906 3.73%   1,750,000 21,628 3.49%
600,000 2,882 3.25%   2,000,000 20,444 3.73%   2,000,000 24,698 3.49%
700,000 3,314 3.27%   2,250,000 22,982 3.73%   2,250,000 27,768 3.49%
800,000 3,745 3.28%   2,500,000 25,520 3.73%   2,500,000 30,838 3.49%
900,000 4,176 3.29%   2,750,000 28,058 3.73%   2,750,000 33,908 3.49%
1,000,000 4,608 3.30%   3,000,000 30,596 3.73%   3,000,000 36,978 3.49%
1,100,000 5,039 3.31%   3,250,000 33,134 3.73%   3,250,000 40,048 3.49%
1,200,000 5,471 3.31%   3,500,000 35,672 3.73%   3,500,000 43,118 3.49%
1,300,000 5,902 3.32%   3,750,000 38,210 3.73%   3,750,000 46,188 3.49%
1,400,000 6,334 3.32%   4,000,000 40,749 3.73%   4,000,000 49,258 3.49%
1,500,000 6,765 3.33%   4,250,000 43,287 3.73%   4,250,000 52,328 3.49%
1,600,000 7,197 3.33%   4,500,000 45,825 3.73%   4,500,000 55,398 3.49%
1,700,000 7,628 3.33%   4,750,000 48,363 3.73%   4,750,000 58,467 3.49%
1,800,000 8,060 3.34%   5,000,000 50,901 3.73%   5,000,000 61,537 3.49%

*This is the indicative percentage rates increase, taking into account average increases in property valuations for the relevant billing category.

2017/18 Funding Impact Statement – Rates Funding Statement (excluding GST)Top

Rate Category Factor Differential Charge Type Total Value of Factor* Rate/charge* Rates yield GST Exclusive $000
General Rate Base (Residential) Capital Value Base differential use $39,804,777,000 ¢0.234013 $93,148,353
Commercial, Industrial & Business Capital Value Commercial, industrial & business use $11,650,092,000 ¢0.655222 $76,333,966
TOTAL         $169,482,319
Sewerage targeted rate Base (Residential) Fixed amount / rating unit Base differential use per connection status 68042 properties $106.60 $7,253,277
Capital Value Base differential use per connection status $42,278,651,000 ¢0.042899 $18,137,118
Commercial, Industrial & Business Capital Value Commercial, industrial and business use per connection status $9,820,082,000 ¢0.144092 $14,149,953
TOTAL         $39,540,348
Water targeted rate Base (Residential)
(without water meter)
Fixed amount / rating unit Base differential use per connection status without a water meter 59989 properties $148.38 $8,901,175
Capital Value Base differential use per connection status without a water meter $34,420,954,000 ¢0.044964 $15,477,038
Base (Residential)
(with water meter)
Consumption unit charge Base differential use per connection status with a water meter n/a $2.064 / m3 $570,302
Fixed amount / rating unit Base differential use per connection status with a water meter n/a $120.60 $79,596
Commercial, Industrial & Business
(without water meter)
Capital Value Commercial, industrial and business use per connection status without a water meter $650,873,000 ¢0.402076 $2,617,004
Commercial, Industrial & Business
(with water meter)
Consumption unit charge Commercial, industrial and business use per connection status with a water meter n/a $2.064 / m3 $13,687,243
Fixed amount / rating unit Commercial, industrial and business use per connection status with a water meter n/a $120.60 $381,217
TOTAL         $41,713,574
Stormwater targeted rate Base (Residential excluding rural) Capital Value Base differential use (excluding rural) $39,264,223,000 ¢0.035501 $13,939,192
Commercial, Industrial & Business (excluding rural) Capital Value Commercial, industrial and business use (excluding rural) $10,124,299,000 ¢0.039973 $4,046,986
TOTAL         $17,986,178
Base sector targeted rate Base (Residential) Capital Value Residential use $39,741,312,000 ¢0.017818 $7,081,107
Commercial sector targeted rate Commercial, Industrial & Business Capital Value Commercial, industrial & business use $11,620,092,000 ¢0.043537 $5,059,039
Downtown targeted rate Commercial, Industrial & Business Capital Value Commercial, industrial & business use located in the downtown area $7,769,469,000 ¢0.184980 $14,371,964
Tawa driveways targeted rate Base (Residential) Fixed amount / rating unit Shared residential access driveways in maintained by Council in the suburb of Tawa (extent of provision of service) 251 properties $133.33 $33,467
Marsden Village targeted rate Commercial, Industrial & Business Capital Value Commercial, industrial & business use located in Marsden shopping village area $11,895,000 ¢0.121538 $14,457
Khandallah Business Improvement District targeted rate Commercial, Industrial & Business Capital Value Commercial, industrial & business use located in the Khandallah Business Improvement District area $12,235,000 ¢0.163465 $20,000
Kilbirnie Business Improvement District targeted rate Commercial, Industrial & Business Fixed amount / rating unit Commercial, industrial & business use located in the Kilbirnie Business Improvement District area 106 properties $500.00 $53,000
Capital Value over $1,000,000 per rating unit Commercial, industrial & business use located in the Kilbirnie Business Improvement District area for all capital value over $1,000,000 CV per rating unit $82,070,000 ¢0.032899 $27,000
TOTAL         $80,000
Tawa Business Improvement District targeted rate Commercial, Industrial & Business Fixed amount / rating unit Commercial, industrial & business use located in the Tawa Business Improvement District area 72 properties $520.00 $37,440
Capital Value over $350,000 per rating unit Commercial, industrial & business use located in the Tawa Business Improvement District area for all capital value over $350,000 CV per rating unit $75,540,000 ¢0.076198 $57,560
TOTAL         $95,000
Miramar Business Improvement District targeted rate Commercial, Industrial & Business Fixed amount / rating unit Commercial, industrial & business use located in the Miramar Business Improvement District area 125 properties $365.00 $45,625
Capital Value over $1,000,000 per rating unit Commercial, industrial & business use located in the Miramar Business Improvement District area for all capital value over $1,000,000 CV per rating unit $93,420,000 ¢0.036796 $34,375
TOTAL         $80,000
TOTAL RATES REQUIREMENT (excluding GST)     $295,557,453

Note:

When rates for 2017/18 are assessed, GST will be applied to the final rates. The total rates requirement includes rates remissions of but excludes rates penalties which are budgeted separately

The total rates requirement (excluding GST) differs from the revenue from rates in the Prospective Statement of Comprehensive Revenue and Expense as the revenue from rates includes rates penalties not included in this statement.

Rates Remission and Postponement Policies

A rates remission up to a maximum of $5,000 (including GST) is being proposed to be offered to property owners who build their first home in Wellington. The objective of this remission is to assist first home builders and promote the supply of housing in Wellington city. The policy for this remission is included below. Refer to the Council Rates Remission Policy for all other rates remissions.

(Note: the Rates Remission Policy was adopted by Council as part of the 2015-25 Long-term Plan and will be amended as part of the 2017/18 Annual Plan)

Rates Remission Policy for First Home Builders:

REMISSION STATEMENT

The Council may grant a rate remission on a new residential dwelling (including apartments) on a separate rating unit, where construction is completed after 01 July 2017 within the boundaries of Wellington City Council.

The remission will be up to a maximum of $5,000 (including GST). To qualify for this remission, the property owner must be:

The earliest the remission can be applied for is after a building code compliance certificate has been issued by the Council for the rating unit. The remission will end once the $5,000 (including GST) has been remitted or when the rating unit is sold (whichever is the sooner).

The remission shall apply to all Wellington City Council rates assessed on the rating unit. Note that Greater Wellington Regional Council rates will still apply.

Applications must be received prior to the commencement of the rating year the remission is being applied for (1 July).

POLICY OBJECTIVE

The objective of this remission policy is to assist new first home builders and promote the supply of housing in Wellington city.

CONDITIONS AND CRITERIA

A remission of rates may apply under the following conditions and criteria:

I. the new residential dwelling must be within the Wellington City Council boundary
II. the new residential dwelling must be on a separate rating unit
III. the property owner(s) must be a New Zealand Permanent Resident or citizen and provide evidence of this
IV. the property must be the first home owned by the applicant
V. the property must be a new residential dwelling (including apartments)
VI. the property owner intends to use the property as their primary residence
VII. the property must be either built for the first owner or purchased within six months of construction
VIII. the property owner must provide evidence that they own the property
IX. application can be made by the ratepayer after a building code compliance certificate has been issued by the Council for the rating unit.
X. the remission will not be available retrospectively for residential dwellings (including apartments) that are already completed before 1 July 2017
XI. once granted, the remission will apply for a set period; commencing from the start of the following rating year and ending when the total amount of Wellington City Council rates remitted on the property reaches the $5,000 (including GST) limit or when the rating unit is sold (whichever is the sooner)
XII. Trusts, businesses and companies are not eligible for the remission

APPLYING FOR A RATES REMISSION

All applications must be in writing and set out the reasons for the request using the Wellington City Council ‘Application for Remission’ form.

Each remission application is applicable to a single rating year, except the Remission of Rates for Buildings Removed from the Earthquake Prone Buildings List, the Remission for New Greenfield Developments and the Remission for First Home Builders, which may apply to multiple rating years.

Applications must be received prior to the commencement of the rating year the remission is being applied for (1 July), with the exception of the following remission applications which may be received after the start of a rating year:

I. the Special Circumstances Remission,
II. the Metered Water Rates Remission,
III. the Remission of Rates for Buildings Removed from the Earthquake Prone Buildings List,
IV. and the Remission for New Greenfield Developments.

No applications will be backdated beyond the current rating year.

All applications for a remission on a rating unit that has previously received a remission or remissions, must be re-submitted annually for consideration of further remissions prior to the commencement of the rating year (1 July), with the exception of the Remission of Rates for Buildings Removed from the Earthquake Prone Buildings List, the Remission for New Greenfield Developments and the Remission for First Home Builders

The determination of eligibility and approval of any remission is at the absolute discretion of the Wellington City Council or its delegated officer.

Applications made for a remission will be considered on their own merits and any previous decisions of the Council will not be regarded as creating a precedent or expectations.

Rates Postponement Policy:

There are no changes to the rates postponement policy.