Tasman rates are fourth highest in New Zealand

Residential ratepayers in Tasman district face higher rates bills than their neighbours in Nelson and Marlborough, a new report from the Taxpayers’ Union shows.

At a cost to ratepayers of $3053 per year, Tasman District Council charges the fourth-highest average residential rates in the country, according to Ratepayers’ Report – the Taxpayers’ Union’s 2018 local government league tables. That’s $829 higher than Marlborough District Council, or $170 more than Nelson City Council.

Taxpayers’ Union executive director Jordan Williams said all three councils could be expected to have a higher rates bill than the national average of $2304, because they were unitary authorities, so they also performed the functions of a regional council.

‘‘However, Tasman district ratepayers should question why their rates bills are on average much higher than Nelson city and Marlborough district – all three councils have a mandate to provide similar services,’’ Williams said.

Tasman mayor Richard Kempthorne agreed the rates were high in his district.

However, it was not an apples-toapples comparison to line up the three top-of-the-south councils, he said.

TDC rates were based on the capital value of rateable properties while Nelson City Council rates were based on land values with differentials including one for commercial properties, which he believed helped to offset residential rates.

‘‘I think differentials muddy the water,’’ Kempthorne said.

In Marlborough, the district council had a busy port with ferries and a ‘‘very active commercial portfolio’’, that included the council subdividing its own land for development.

‘‘That helps to offset rates,’’ Kempthorne said.

Tasman district was spread out and included 16 settlements.

‘‘Water, wastewater and stormwater all becomes more expensive with smaller settlements,’’ the mayor said.

By comparison, Marlborough had fewer settlements, while Nelson had a more condensed population base.

However, the big driver for increased debt and rates in Tasman district had been growth, which required new and improved infrastructure.

It was a challenge to ensure rates were affordable and the Tasman council had been following a financial strategy it set in 2015, to keep rates increases under 3 per cent a year, plus an allowance for growth, and stay within a selfimposed net debt cap of $200 million.

Williams said Nelson City Council’s average residential rates bill of $2883 was the seventh-highest of any council in New Zealand.

‘‘Marlborough District Council’s average residential rates bill [of $2224] appears to offer better value for money,’’ he said. Ratepayers’ Report is available online via ratepayersreport.nz for free.