Putting context around the Additional Unit Rate (AUR)

Council's Long Term Plan proposal to resolve an unequitable anomaly with the Additional Unit Rate (AUR) on commercial properties attracted considerable attention from those commercial properties that would be receiving an increase. For public interest, Council would like to put some context around this:

• This is not a new rate. The change is to apply an existing rate more equitably across the district; where some businesses have been paying less due simply to structure of titles, property design etc.
• There are 9,481 properties in the district that pay either a UAGC* or ADR#, or both.
• There are 688 commercial properties in the district.
• The change proposed affects 140 commercial properties. This could potentially affect 387 individual businesses (this includes current vacant premises).
• 548 commercial and industrial properties are NOT affected.

"It was brought to my notice as Mayor that there was a long standing anomaly in how our Universal Annual General Charge was applied across the district, and I realised that an anomaly, in the name of fairness and equity, had to be addressed," said Mayor Sinclair. "Small single tenanted premises were at a great disadvantage and landlords with several tenants were not meeting their fair share, through no fault of their own.

"At present there are 1,201 additional dwelling rates levied in the district, mainly on farms. Already 648 properties pay the UAGC plus an at least one more additional rate. Fourteen existing properties already pay more than ten ADRs and they are a mixture of farms and residential blocks of flats."

"There are 140 commercial premises affected (71 will only have one UAR added). In total about 240 AURs will be added to these when the anomaly is corrected. It is not a new rate. We are simply applying one rule to all; fairness and equality is our aim."

"I believe that if there is to be any criticism, it should be why we are taking so long to rectify the situation. I believed it was important to recognize the problem first then resolve it. This charge will be incurred by the owner, how the owner (or landlord) handles that will depend on each situation."

"I must emphasise that the anomaly is of Council's making and the landlords were simply paying as Council had invoiced."

The new system ensures that the 80% of properties not affected are no longer supporting the 20% of properties affected. It is important to note that this change does not increase the total rate revenue; funding is redistributed more equitably.

Of the 140 properties affected:

• 5 properties have half a charge added (under legislation have half non-rateable)
• 71 properties have one charge added
• 1 properties will have one and half added (qualifies for non-profit community rate remission)
• 28 properties will have two added
• 21 properties will have three added
• 10 properties will have four added
• 3 properties will have five charges added
• 1 property will have 10 additional charges (Council property)

Council has decided to make this proposed change in the interest of equitable distribution of rates over a five year period to make it easier for those affected to manage the increase.

The total increase over this five year period for properties incurring one additional charge will be within a few dollars of $600, which equates to $120 per year for five years; this equates to $2.30 per week increase per year, for five years.

* UAGC - Uniform Annual General Charge

# ADR - Additional Dwelling Rate

^ AUR - Additional Unit Rate