Uniform Annual General Charge (UAGC)

There has been a lot of publicity lately about the raising of the Uniform Annual General Charge part of the rates from $200 to $400. The Palmerston North Residents Association has been very outspoken against the increased charge and claims it is unfair and inequitable.

Councillors spent several months investigating the impact of the city-wide revaluation of property and the implications of this. We are charged with setting rates ” in a manner which is fair and equatable as between various ratepayers…” (see page 30 of the LTCCP for our rating objectives). Due to the variations in the 2003 property revaluation leaving the UAGC as it was would have resulted in some sections of the city, most notably Ashhurst, having an across-the-board decrease in rates from the previous year, while other areas of the city would have had the greater burden. This would not have been fair or equitable.

After months of workshops and discussion it was concluded that the only fair way of dealing with these inequities was to set a UAGC which took into account the fact that all households use the same basic share of basic services. The proposal went forward that until such time as a complete review of the rating system could be undertaken, the UAGC should be set at $400. Many other councils around the country took a similar approach.

When this came to the vote, a few councillors attempted to mitigate the effect of the increase on lower valued properties by having it reduced to $350. We were defeated by majority vote. The relevant section of the minutes is reproduced on the next page.

The following is contained in the minutes of the Extraordinary Council Meeting of 22 June.

93-04 ADOPTION OF THE 2004/05 - 2013/14 LONG TERM COUNCIL COMMUNITY PLAN

(Report of the Committee of Council meeting of 15 June 2004.)

The Mayor separated the parts of the clauses and put each part separately as follows:

Clause 51.2.1

A MOTION to amend the increase in the Uniform Annual General Charge to $350 for the 2004/05 financial year was PUT and LOST.

(NOTE: On the amendment that the Uniform Annual General Charge be increased to $350 for the 2004/05 financial year, a division was called, and Councillors Marilyn Brown, Peter Claridge, Vaughan Dennison, Lew Findlay, Pat Kelly, Lynne Pope and Heather Tanguay voted in support of the motion, and

The Mayor (Mark Bell-Booth) and Councillors Marilyn Craig, Gordon Cruden, John Hornblow, David Ireland, Jim Jefferies, Jono Naylor, Anne Podd and Alison Wall voted in opposition.

The Chairperson declared the amendment lost 9 votes to 7.)

The substantive motion that the Uniform Annual General Charge be increased to $400 for the 2004/05 financial year, was PUT and CARRIED.

(NOTE: Councillors Peter Claridge, Pat Kelly, Vaughan Dennison and Lynne Pope requested their dissent be recorded.)