Decisions from today’s DCC committee meeting

Rates changes proposed to support those facing financial hardship

Proposed changes to the Dunedin City Council’s Rates Remission and Postponement Policy – which provides financial relief to those experiencing hardship – are being recommended for public consultation as part of the Long Term Plan process.

Under the Local Government Act 2002, councils are required to have a policy on the remission or postponement of rates, or both.

They are also required to review their policy, and consult the public on changes, every six years.

The DCC’s existing policy covers rates remission and postponement for financial hardship, including in cases of natural disaster, calamity and unexpected events, as well as the remission of targeted rates relating to family flats.

The DCC receives several hundred applications for rates remissions every year, the majority of which relate to remission of penalties and for remission of certain targeted rates for a family flat, a staff report considered at today’s Finance and Performance Committee meeting said.

The DCC’s proposed changes include replacing sections covering rates remission following a natural disaster, calamity or other unexpected events with a new section.

The new wording would provide more flexibility for the DCC to provide support “where Council has deemed it is fair and equitable to do so”, as the existing policy was too restrictive and not fit for purpose, the report said.

Other changes include requiring applicants to provide evidence of financial hardship from a recognised budgetary advisor, and removing a condition requiring applicants not to already be in arrears.

Councillors voted to recommend that Council approve the proposed policy for the purposes of consultation as part of the Long Term Plan process.

Councillors support new Ratepayers Assistance Scheme

The scheme would be a national shared service providing low-cost loans to ratepayers to pay for home improvements such as solar panels, batteries, insulation, and electrification upgrades.

It will also pay for development contributions and levies, and rates postponement.
Under the new scheme, a successful application would see the RAS – administered by LGFA - would pay the upfront cost to the relevant council or directly to an approved supplier.

A staff report considered today said the scheme aimed to help ratepayers struggling with rising rates and other costs by spreading payments over many years.

The report also outlined a range of potential risks and benefits.
Councillors voted to provide in-principle support for the scheme. A report with further details and covering next steps will follow.

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