The assessment did not consider value for money, asset values or non-taxable income such as accommodation supplements.
Gisborne’s last capital value assessment was in 2023. Other councils in the report had used more recent assessments to compare affordability.
Residential rates
Gisborne’s residential rates were “middle of the pack to favourable” compared with 10 other districts.
Median rates for standalone dwellings in Gisborne were around $4389 for the year to June, equivalent to 3.7% of Gisborne’s median household income of $114,700.
Affordability varied significantly across the 27 recorded towns and suburbs.
Rates were generally more affordable in rural areas because of lower property values and reduced access to council services such as wastewater, the report stated.
Median rates in Wharekaka (north of Tolaga Bay), Ruatōria and Tokomaru Bay ranged from about $2100 to $3500, or 2% to 3% of household incomes.
City suburbs including Kaiti, Gisborne Central and Mangapapa had median rates of about $4100 to $5000, equivalent to 3.7% to 5.6% of household income.
Five suburbs were estimated to pay 5% or more of income on rates.
Lytton paid 8.9% of median household income of $56,297 on rates, the highest proportion in the district.
The high proportion of pensioners living there influenced this and did not necessarily reflect total household income, Brunsdon said.
Across the 11 unitary councils, neighbouring districts and councils with similar economic activity used to compare affordability, Gisborne’s median rates bill was the fourth-lowest.
Gisborne’s 3.7% share of household income was the second-lowest, behind Marlborough at 3.2%.
Brunsdon said the comparison was relative and did not mean all residents were happy with their rates.
A council spokesperson said while Gisborne compares favourably overall, affordability differed between communities.
“District-wide averages need to be considered alongside those local differences.”
Non-residential rates
Commercial rates were broadly comparable with other districts, but forestry and vineyard rates were among the least affordable when measured against capital value.
Commercial rates in Gisborne, including accommodation, retail and industrial activity, had a median value of $5481. This was equivalent to 0.8% of the median capital value, placing Gisborne in the middle of the analysed districts.
This was below 2.6% in Wairoa and 1.4% in Ōpōtiki.
Pastoral rates were similar to other districts at 0.26% of median capital value, or $19,522.
However, forestry rates were 1.4% of median capital value, the third-highest proportion among compared districts, behind Wairoa at 1.7% and Far North at 1.5%.
Other regions spent between 0.2% and 0.6%.
The council said the median forestry rate of $2557 was among the lowest in monetary terms.
“The report notes a cluster of median exotic forestry rates about $1,500-$20,000, with Gisborne median rates at the lower end at $2,557.”
Horticultural rates were the highest percentage of capital among comparable regions alongside Ōpōtiki, at 0.32% of the median capital value.
The report did not account for Gisborne District Council’s rates remission policies, and stated Ōpōtiki likely had smaller plots but higher rates.
“The median horticultural rates of $5,959 are the second lowest rates against the other councils compared,” the council said.
Vineyard rates were 0.32% of median capital value, the highest among four comparable wine-producing regions.
Tasman was 0.3%, Hastings 0.24% and Marlborough 0.17%.
“While Gisborne ranked towards the less affordable end of the comparison group using the rates-to-capital-value measure, the actual rates paid were generally comparatively low,” a council spokesperson said.
“For example, Gisborne had the lowest median vineyard rates in the study at $6,773. Conversely, Tasman recorded median vineyard rates of $11,869, reflecting both larger rating units and less affordable vineyard rates.”
Kiwifruit rates were more affordable at 0.22% of median capital value or $12,771, while pip-fruit rates were similar to others with 0.29% of median $10,061 capital value.
Evidence for reviews
The report will provide evidence for a review of the council’s revenue and financing policy and development of its Long Term Plan.
It will help council assess affordability pressures across communities and sectors, alongside actual rates paid, when considering future funding options.
The report provides a baseline for the 2026/27 rates but does not account for the impact of this year’s 8.49% rates increase.
Council said more than 83% of properties received an increase of $400 or less, while 5400 rural properties had increases of less than $150.
In Gisborne City, the average increase was $351 plus GST for 11,446 properties.
LDR is local body journalism co-funded by RNZ and NZ On Air.