The assessment did not consider value for money, asset values or non-taxable income such as accommodation supplements.<\/p>\n
Gisborne\u2019s last capital value assessment was in 2023. Other councils in the report had used more recent assessments to compare affordability.<\/p>\n
Residential rates<\/p>\n
Gisborne\u2019s residential rates were \u201cmiddle of the pack to favourable\u201d compared with 10 other districts.<\/p>\n
Median rates for standalone dwellings in Gisborne were around $4389 for the year to June, equivalent to 3.7% of Gisborne\u2019s median household income of $114,700.<\/p>\n
Affordability varied significantly across the 27 recorded towns and suburbs.<\/p>\n
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.<\/p>\n
Median rates in Wharekaka (north of Tolaga Bay), Ruat\u014dria and Tokomaru Bay ranged from about $2100 to $3500, or 2% to 3% of household incomes.<\/p>\n
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.<\/p>\n
Five suburbs were estimated to pay 5% or more of income on rates.<\/p>\n
Lytton paid 8.9% of median household income of $56,297 on rates, the highest proportion in the district.<\/p>\n
The high proportion of pensioners living there influenced this and did not necessarily reflect total household income, Brunsdon said.<\/p>\n
Across the 11 unitary councils, neighbouring districts and councils with similar economic activity used to compare affordability, Gisborne\u2019s median rates bill was the fourth-lowest.<\/p>\n
Gisborne\u2019s 3.7% share of household income was the second-lowest, behind Marlborough at 3.2%.<\/p>\n
Brunsdon said the comparison was relative and did not mean all residents were happy with their rates.<\/p>\n
A council spokesperson said while Gisborne compares favourably overall, affordability differed between communities.<\/p>\n
\u201cDistrict-wide averages need to be considered alongside those local differences.\u201d<\/p>\n
Non-residential rates<\/p>\n
Commercial rates were broadly comparable with other districts, but forestry and vineyard rates were among the least affordable when measured against capital value.<\/p>\n
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.<\/p>\n
This was below 2.6% in Wairoa and 1.4% in \u014cp\u014dtiki.<\/p>\n
Pastoral rates were similar to other districts at 0.26% of median capital value, or $19,522.<\/p>\n
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%.<\/p>\n
Other regions spent between 0.2% and 0.6%.<\/p>\n
The council said the median forestry rate of $2557 was among the lowest in monetary terms.<\/p>\n
\u201cThe 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.\u201d<\/p>\n
Horticultural rates were the highest percentage of capital among comparable regions alongside \u014cp\u014dtiki, at 0.32% of the median capital value.<\/p>\n
The report did not account for Gisborne District Council\u2019s rates remission policies, and stated \u014cp\u014dtiki likely had smaller plots but higher rates.<\/p>\n
\u201cThe median horticultural rates of $5,959 are the second lowest rates against the other councils compared,\u201d the council said.<\/p>\n
Vineyard rates were 0.32% of median capital value, the highest among four comparable wine-producing regions.<\/p>\n
Tasman was 0.3%, Hastings 0.24% and Marlborough 0.17%.<\/p>\n
\u201cWhile 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,\u201d a council spokesperson said.<\/p>\n
\u201cFor 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.\u201d<\/p>\n
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.<\/p>\n
Evidence for reviews<\/p>\n
The report will provide evidence for a review of the council\u2019s revenue and financing policy and development of its Long Term Plan.<\/p>\n
It will help council assess affordability pressures across communities and sectors, alongside actual rates paid, when considering future funding options.<\/p>\n