Councils are required by the Local Government Act 2002 to adopt a Revenue and Financing Policy, in order to provide predictability and certainty about sources and levels of funding. Funding sources include rates, fees and charges and borrowings. The Revenue and Finance Policy is developed during the preparation of each Long Term Plan. The revenue and financing policy was reviewed and adopted as part of the 2018-28 Long Term Plan and will next be reviewed under the 2021-31 LTP. Frequently Asked Questions What is revenue? Revenue is income that an organisation receives from its normal activities, usually from the sale of goods and services to customers. For Councils, income is from things like rates and fees and charges as well as loans for major projects. What is a rateable unit? The land comprised in a Certificate of Title (CT) constitutes a rating unit. Where a property has two CT's, one for the dwelling and one for the tennis court, the owner will receive two rate accounts. This is a legal requirement and the two accounts cannot be amalgamated. A block of shops on one CT is a rating unit and will receive one rate account from 1 July 2003, even though each shop may have had a separate rate account in the past. In the case of ownership flats, townhouses, etc, where there are two or more, each on their own CT, even if they are owned by the same person they are each a rating unit and will receive a separate rate account. What is a targeted rate? Targeted rates are for a particular activity or project that benefits specific ratepayers, for example our targeted rates for storm water for different communities. What is a uniform annual charge (UAGC)? The UAGC funds a large range of activities from which every ratepayer benefits equally. It is a fixed rate applied to every separately used or inhabited part (SUIP) of every rateable property in the region, e.g. one property with 6 shops will be charged 6 UAGC's. We use the UAGC to part fund things like Emergency Management and Economic Development. What is a general rate? This is a rate charged based on a rating unit's land value. The general rate part funds things like district roading. What is land value? Land value means how much the land is worth (without improvements or things like mortgages) if it was sold to a bona-fide buyer. What is capital value? Capital value means how much the land is worth (with improvements and without things like a mortgage) if it was sold to a bona-fide buyer. Capital value does not include chattels, stock, plant or machinery which may be normally included in the sales of properties.