Te Karearea Strategic Partnership Forum Rates Review 15 November 2017

Purpose of this Meeting Discuss Schedule 11 of the Local Government Act 2002 Provide an overview of rating for Māori freehold land, Council policy and arrears Proposed Te Ture Whenua Māori reforms (should they proceed) Discuss and consider Northland initiative to harmonise policy Questions to consider: Does Whangārei District Council policy meet Schedule 11? How can Council work with Māori to reduce rates arrears?

Local Government Act 2002 Section 108 Section 108 provides for Council to adopt policy for Rates Remission and Postponement on Māori Freehold Land taking in consideration Schedule 11: Policy objectives Criteria Conditions

Local Government Act 2002 Schedule 11 - Objectives Supporting the use of the land by the owners for traditional purposes Recognising and supporting the relationship of Māori and their culture and traditions with their ancestral lands Avoiding further alienation of Māori freehold land Facilitating any wish of the owners to develop the land for economic use Recognising and taking account of the presence of waahi tapu that may affect the use of the land for other purposes

Recognising matters related to the physical accessibility of the land Recognising and taking account of the importance of the land in providing economic and infrastructure support for marae and associated papakainga housing (whether on the land or elsewhere) Recognising and taking account of the importance of the land for community goals relating to— the preservation of the natural character of the coastal environment: the protection of outstanding natural features: the protection of significant indigenous vegetation and significant habitats of indigenous fauna Recognising the level of community services provided to the land and its occupiers Recognising matters related to the physical accessibility of the land

Rates : Funds Council Activities Primary source of funding for many Council activities - Roading Sewerage Refuse management Water Stormwater, flood protection, flood control Libraries, parks, walk and cycle ways, recreational and other community activities, civil defence, governance, etc

2017/2018 Value and Rates

Current Policy Rates Remission on Unoccupied Māori Freehold Land Objectives : To recognise situations where there is no occupier or no economic or financial benefit is derived from the land. Where part only of a block is occupied, to grant remission for the portion of land not occupied. To encourage owners or trustees to use or develop the land. Where the owners cannot be found, to take into account the statutory limitation of time for the recovery of unpaid rates

Rates Remission on Unoccupied Māori Freehold Land Criteria: Multiple ownership Land not used (or portion) Amount remitted 2017/2018 : $300,000

Current Policy Rates Postponement on Māori Freehold Land Objective: To encourage the development and use of Maori freehold land where Council considers the full payment of the rate arrears would be a disincentive following the transfer of ownership or occupation. Criteria: New owners or occupiers must agree to meet all future rates. Amount to write off (6 years old) 2017/2018: $110,000

Rates on Māori Freehold Land 2016/2017

Rates Arrears, Collection and Recovery General land (and MFL) - mortgage Reminders: letters, phone calls, meetings Contact mortgagee 3 months later - If no payment or agreement to pay -> Contact mortgagee for payment General land – no mortgage Reminders: letters, phone calls, meetings File legal proceedings with District Court If no payment or agreement to pay -> Enforce judgment and register charging order -> Possible rating sale No rating sales in recent times

Rates Arrears, Collection and Recovery Māori freehold land – no mortgage Liability for rates: Vested in Trustees - limited to income derived from the land Multiple Ownership - Person actually using land Collection and Recovery Reminders: letters, phone calls, meetings Legal proceedings with Māori Land Court – application for Charging Order on land No Charging Orders in recent times

Arrears on Māori Freehold Land Māori Freehold Land comprises 49 % ($900,000) of the district’s land rates arrears A further 14% ($250,000) have payment arrangements Council encourages to hapu to meet discuss payment arrangements and possible remissions to address historic debt No recovery activity in some time

Te Ture Whenua Māori reforms In the current draft the issues that may be addressed: Review of the valuation of the land to take into account the multiple ownership and other factors Non-rateability of papakainga housing Increasing the marae land from 2 hectares Expanded definition of Whenua Rahui land (reserve land - land set aside for a special purpose), Whenua Tapu (sacred land) and Kawenata Tiaka Whenua (cultural, historic or natural heritage land). Non-rateability of land only occasionally used.

Northland Regional Harmonisation of Rating Policy on Māori Freehold Land Objectives: To ensure cultural interests of the region are preserved To encourage economic development To harmonise and simplify rating remission and postponement policy region-wide where appropriate

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