The council also wants to calculate that roading charge using capital value (CV) rather than land value (LV).<\/p>\n
The logic was that properties with higher capital value (like commercial properties) tended to make more use of, and gain more benefit from, the roading network, the council said.<\/p>\n
\u201cWe want those who put the most wear and tear on our roads to pay more,\u201d Napier Mayor Richard McGrath said, adding that includes the likes of utility companies that sometimes dig up the roads.<\/p>\n
Roading charges are currently based on LV and make up 22.2% of a ratepayer\u2019s general rate in their rates bill.<\/p>\n
That covers roading projects and other transport-related projects, such as footpaths.<\/p>\n
A homeowner with a land value slightly below $400,000, for example, currently pays about $400 a year for roading projects (in their rates bill).<\/p>\n
The change will not result in the council collecting more rates overall for roading projects, but will change the proportion each ratepayer pays.<\/p>\n
McGrath said the proposed change was a fairer way to calculate roading costs.<\/p>\n
Councils manage local roads in their respective area, while the NZ Transport Agency manages highways.<\/p>\n
McGrath said the proposed council\u2019s average rates rise of 8.8% would help cover major water supply projects and stormwater upgrades.<\/p>\n
\u201cIt\u2019s the infrastructure and services that residents depend on.<\/p>\n
\u201cWe know that cost pressures are real for many households right now, and we don\u2019t take that lightly.<\/p>\n
\u201cWe\u2019ve worked hard to keep next year\u2019s rates increase as low as we can, and it\u2019s now lower than what we expected three years ago.\u201d<\/p>\n