Types of rates and how they're used
Rates help pay for services and facilities for the Kāpiti community that are either essential (like wastewater management) or benefit our community – the things that make our district a more desirable place to live.
Not everyone uses every service or facility, and where we can we look at other ways of paying for these, like development contributions and ‘user pays’ – eg, subsidised swimming pool entry fees.
We also collect rates on behalf of the Greater Wellington Regional Council. These rates are set by Greater Wellington to fund the services they provide. For more information see Greater Wellington.
At the beginning of each rating year you'll receive two Rates Assessment Notices with your first property rates invoice: one shows your Kāpiti Coast District Council rates and the other your Greater Wellington rates. Each quarterly property rates invoice includes both district and regional council rates so you don't have to make separate payments to each council. We pass Greater Wellington's portion on to them on your behalf.
Central government requires us to carry out a wide range of territorial authority functions, along with the activities our community wants us to do.
We work hard to keep costs down. As we develop our long-term plan (year 1) or annual plan (years 2 and 3), we have to make hard choices about where we focus our activity and our budget. That’s why we need your community feedback before we finalise each plan.
Each year we look carefully at:
- the services and facilities we need to provide our communities in the year ahead
- what new projects to undertake.
We put these together in a draft plan, with details of the income Council needs to provide them. This income comes from fees and charges, grants and subsidies, and development contributions, which provide nearly a quarter of the money needed to serve our community. The rest is funded by rates.
We then invite our local community to give input on the key decisions being considered. After listening to feedback, Council sets the budget for the year ahead as it adopts its annual plan or, every third year, its long-term plan.
Our rating system sets out how the rates income Council needs to provide services is allocated across the approximately 26,000 ratepayers in our district.
The Kāpiti Coast District Council has two main rating types:
- targeted rates.
Targeted rates are either:
- a fixed charge
- a charge calculated based on your property's land value or capital value
- a usage-based charge.
Legislation limits how councils around Aotearoa New Zealand can assess rates. Each council will have a different rating system and use different proportions for fixed charges and charges related to land value or capital value. Each year we face challenges in how we can keep providing services and projects while keeping our rating system fair, equitable, and affordable.
In the 2023/24 year our rates income was made up of:
- 42 percent from fixed charges
- 37 percent from charges related to land value
- 16 percent from charges related to capital value
- 5 percent usage-based water charges.
To find out more about our rates system, see our Annual Plan 2023/24.
We know some members of our community struggle to pay rates at times. Find out more about the rates assistance available at Help with your rates.
In general your Greater Wellington rates fund public transport (trains and buses), river management and flood protection, possum and predator control, emergency management, environmental education and sustainability, land management, regional parks and forests.
The regional general rate is mainly used to fund ‘public good’ activities that benefit the region as a whole. It funds most of: regional leadership, including mana whenua engagement; emergency management; parks; policy and planning; environmental science; biodiversity; and understanding flood risk. It also funds up to 50 percent of other flood protection activities.
- Public transport: This rate contributes to public transport funding, including services and infrastructure.
- River management: This rate funds flood protection services in local communities.
- Regional economic development: This rate includes funding for the Wellington regional economic development agency.
- Warm Greater Wellington: This rate is for properties that use Greater Wellington assistance for clean heat and insulation.
For more information about Greater Wellington rates, see Your rates – Greater Wellington.