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Albert-Eden
Local Board
10 June 2015
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Local board
feedback on amending the licence to occupy remission scheme to include proposed
the Transport Levy
File No.: CP2015/11071
Purpose
1. This report seeks feedback from
local boards on the proposal to amend the remission scheme for residents of
licence to occupy (LTO) retirement villages and/or Papakāinga housing to
remit the proposed Interim Transport Levy (targeted rate) in addition to the
Uniform Annual General Charge (UAGC).
Executive
Summary
2. On 21 May 2015 the Finance and
Performance Committee agreed to consult on the proposal to amend the remission
scheme for residents of licence to occupy retirement villages and/or
Papakāinga housing to remit the proposed Interim Transport Levy in
addition to the UAGC.
3. This amendment was proposed to
address concerns regarding the affordability of the Interim Transport Levy for
residents of licence to occupy retirement villages.
4. Attached to this report is the
Proposal to amend Auckland Council’s Rates remission and postponement policy
(remission scheme for residents of licence to occupy retirement villages and/or
Papakāinga housing). This document forms the basis for consultation with
the public. It includes the proposed text for the amended rates remission
scheme.
5. Staff will report back to the
Governing Body on the results of consultation and the proposed changes to the
Rates remission and postponement policy on 25 June 2015.
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Recommendation/s
That the Albert-Eden Local
Board:
a) provides feedback on the
proposal to amend the remission scheme in the Rates remission and postponement
policy for residents of licence to occupy retirement villages and/or
Papakāinga housing to remit the proposed Interim Transport Levy
(targeted rate) in addition to the Uniform Annual General Charge.
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Comments
Background
6. Residents of licence to occupy
villages are usually responsible for paying the rates associated with their
unit. However, they are unable to apply for assistance under the central
government’s rates rebate scheme as they are not the ratepayer.
7. The Auckland Council offers a rates
remissions for residents of licence to occupy retirement villages and
papakainga. The current scheme remits the UAGC for those residents who would
otherwise qualify for a rate rebate based on their level of household income
and amount of rates. The value of this remission is just over 60 per cent of
the maximum rebate available under the government’s scheme.
8. The remission applies to the
rates of the retirement village in which the applicant resides. It is a
requirement of the remission scheme that an agreement exists between the
village operator/papakainga and Auckland Council. This agreement requires that
the benefit of the rates remission be passed to the resident.
9. There are more than 6500 units
across 67 retirement villages that use license to occupy agreements. Of these,
60 villages have an agreement with Auckland Council that enables their
residents to apply for the rates remission scheme for licence to occupy
retirement villages. For the 2013/2014 year, 1,156 applicants qualified for remission,
at a total cost of $420,000.
Analysis
10. Amending the LTO
remission scheme to remit the Interim Transport Levy in addition to the UAGC
will increase the value of the remission per qualifying residence to $500 in
2015/2016. This is equivalent to 83 per cent of the maximum rebate available
under the government’s scheme. This compares to Auckland Council applicants for
the rates rebate, who on average qualify for 90 per cent of the maximum
available rebate.
11. Assuming growth
of ten per cent over 2013/2014, the total cost of the LTO remission scheme if
the Interim Transport Levy is also remitted will be $635,000 in 2015/2016. This
is an increase of $146,000 over the estimated cost of retaining the existing
LTO remission scheme. This is 0.01 per cent of the 2015/2016 total rates
budget. This cost will be met through the council’s existing allowance for
remissions, so will have no impact on other ratepayers.
Consultation
12. Public consultation on the
proposal ends 8 June 2015. Consultation has been advertised via public notices
and the Shape Auckland website. Details of the proposal have also been sent to
all licence to occupy retirement villages, papakainga and marae seeking
feedback. To date 25 responses have been received, all supporting the proposal.
Consideration
Local
Board views and implications
13. This report seeks feedback on the
proposal from local boards.
Māori
impact statement
14. To date, the council has not
identified any papakainga housing developments that are using licence to occupy
agreements. The council has not received any applications for remission from
such developments.
15. The council has sent consultation
material to Mana Whenua contacts, Papakāinga and marae seeking feedback on
the proposal.
Implementation
16. There are no implementation costs
to amend the LTO remission scheme as proposed in this report. The recommended
proposal does not require any changes to application process for the rates
remission scheme, and as such it does not place any increased burden either on
applicants, or the management of retirement villages who help administer the
scheme.
Attachments
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No.
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Title
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Page
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aView
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Proposal to amend Auckland Council’s Rates remission
and postponement policy
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9
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Signatories
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Author
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Beth Sullivan - Principal Advisor, Financial Planning,
Policy and Budgeting
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Authorisers
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Matthew Walker – General Manager, Financial Planning,
Policy & Budget
Karen Lyons – Manager, Local Board Services Department
Adam Milina - Relationship Manager - Albert-Eden &
Orakei Local Boards
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