Your Wellington City Council rates, explained

These services include essential ones like ensuring people have access to drinking water, recycling, roading, social housing and safety, as well things that make our city a great place to live like parks, recreation centres, pools, libraries, and community centres. 

As people will be receiving their first rates notices for the new financial year (1 July 2024 – 30 June 2025) in early August, we have put together a list of commonly asked questions about rates. 

What do rates pay for?

The 2024-34 Long-term Plan outlines how the Council intends to invest for the next 10 years. More than 4,000 people made a submission when we consulted on the Long-term Plan earlier this year. As part of the Long-term Plan process, the Council set its annual budget, the rates funded component of which is collected from property owners.

This year’s budget includes average rate increases of 16.9 percent, (excluding an additional sludge levy of 1.6 percent on average).

Key investments in the Long-term Plan, which came into force on 1 July, include:

• A record $4.8 billion set aside for water infrastructure including $1.8 billion of Wellington Water Ltd funding covering upgrades, renewals, services and repairs; 
• New waste collection services from 2027 including a rates-funded rubbish wheelie bin, a rates-funded weekly organics service and a bigger fortnightly recycling bin; 
• A new Perpetual Investment Fund to be created using proceeds from the sale of the Council’s minority shares in Wellington Airport Limited;  
• Over $42 million spent on upgrading and renewing the city’s Coastal, Town Belt and Reserves infrastructure; 
• $106 million of funding for recreation facilities and services; 
• More than $325 million on operational costs for social housing;
• Nearly $593 million on renewing and upgrading social housing units; 
• Over $104 million for the completion of the Te Matapihi Central Library;
• $1.1 billion for the transport network; 
• $500,000 extra each year on social grants for safety initiatives in the CBD.

What is the additional sludge levy?

The sludge levy is to cover the approximately $400 million required to pay for the  construction of Te Whare Wai Para Nuku, the Moa Point sludge minimisation facility.

This facility, a critical piece of infrastructure for the city, will reduce the volume of treated sludge, a byproduct of the wastewater treatment process, by up to 80 percent. It will also reduce emissions generated through the treatment process by up to 60 percent. It will remove the need to pipe more than a million litres of sludge across the city and bury 40–50 tonnes of it in the landfill each day. 

How are rates set? 

Rates are calculated using your property's capital value, land use and whether it receives targeted rates, a rates remission or is non-rateable.

Rates are based on the needs of the community, the demand for services and affordability in rates. These factors are assessed and considered during the formation of the Long-term Plan. Our rates revenue is split between targeted rates and general rates. 

General rates are paid by all ratepayers and applied to services which benefit the whole community, e.g. emergency management; cleaning and waste; maintaining parks, walkways, roads and footpaths; operating libraries and community centres. 

Targeted rates are paid by a specific group of ratepayers who receive a specific service – for example water, and wastewater services in rural areas, and funding for business improvement districts (BIDs).

How do I find out what my rates will be this year? 

You can look up a property’s rates using our property search tool: Property search - Wellington City Council  

The total figure includes both Wellington City Council and Greater Wellington Regional Council rates. 

The Council say average rates increases will be around 16.9 percent, plus an additional sludge levy of around 1.6 percent on average. But my rates have a higher percentage increase. Why?  

The total number you see in your rates bill or by looking up your property includes Greater Wellington Regional Council rates, as well as Wellington City Council rates and the sludge levy. 
 
Wellington City Council’s 16.9% average increase (18.5% when the sludge levy is included), reflects the total increase in the overall rates requirement of WCC. The rates increase an individual property received may differ from the average. The share you pay depends on your property’s capital value, land use and whether it receives targeted rates, a rates remission or is non-rateable.  
 
Wellington City Council also collects Greater Wellington Regional Council rates on their behalf. The average increase in Greater Wellington rates for Wellington City residential properties is 24.5%. Find information about Greater Wellington rates or you can contact them on 0800 496 734 or info@gw.govt.nz.  

What help is there for people who are experiencing financial hardship? 

There are options available to spread payments into more affordable amounts over the course of a year. You can spread your rates over weekly, fortnightly or monthly payments using direct debit. We may be able to enter a payment arrangement for a period of time. For assistance or options contact the rates team on 499 4444 or email rates@wcc.govt.nz. 

If you are on a low income, you may be eligible for up to $1590 off your rates – a govt rates rebate of up to $790 and a further Council rates remission of up to $800.  

You can apply for a Government rates rebate on their website. You will automatically receive the Council rates remission if you receive the Government rebate. 

This year there is a rating valuation – what is that?

Rating valuations are usually carried out on all New Zealand properties every three years to help local councils set rates for the following three-year period. They reflect the likely selling price of a property at the effective revaluation date (not including chattels). The new revaluation date will be as at 1 September 2024. The new revaluation won’t come into effect until the 1 July 2025 so it has no impact on the rates payable for the current financial year.  

Wellington City Council will use these valuations as a guide for setting your rates — but it’s important to keep in mind that a change in the rateable value of your property does not necessarily mean rates will change by a similar percentage. 

Rating valuations are not intended to be used for any other purpose, or as sales data. 

How do revaluations affect rates?

Changes to the rateable capital value of a property do not mean rates will change by a similar percentage. The Council uses property values to allocate the rates it needs to collect between all ratepayers — it doesn’t collect more rates just because capital values have increased and it doesn’t collect less rates if capital values have decreased.

Changing values don’t directly affect rates, however if a home’s value changes disproportionately to others the homeowner can find themselves with lower or higher changes. If you think of the Council’s rates income as a pie, the size of the pie does not get any bigger because of the revaluation. However, a ratepayer’s slice of pie might get bigger or smaller depending on how their property value has changed in relation to the average change of the city. Any effect of the revaluation on the rates you pay will not take effect until 1 July 2025.

The actual rates increase for each property will depend on a range of factors, including:

• the Council’s overall rates ‘budget’ calculated each year in the Annual Plan.
• the capital value change for your property compared to the average change.
• any change in the mix of services the Council provides.
• any change in targeted rates or the Council’s rating differential.

I objected to my current valuation so can I hold off paying rates until this is sorted?

No. Council is obliged under legislation to set the rates on the values that are on the District Valuation Roll and rates are still payable regardless of any outstanding objections. Once your objection is settled, and if the values change, an amended rates assessment reflecting the change in valuation will be sent out. If your rates decreased, we could then refund any overpayment, or the credit can be applied to your next instalment.