1. Te Karearea Strategic Partnership Forum
Rates Review 15 November 2017

2. 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?

3. 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

4. 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

5. 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

6. 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

7. 2017/2018 Value and Rates

8. 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

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

10. 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

11. Rates on Māori Freehold Land 2016/2017

12. 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

13. 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

14. 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

15. 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.

16. 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

17. Questions/Comments/Feedback