Revenue and Financing Policy the land value of each property other than Wairau Valley River Works Separate differential categories are utilised for general-type rates and charges, Rates and the Kenepuru Road Rate which are levied on capital value, or and these are specified in each year’s Funding Impact Statement. Council the Southern Valleys’ Irrigation Loan Rate and the Flaxbourne currently has six geographic areas and three categories of land use for each of Community Irrigation Scheme Loan Rate which are based on irrigable these areas. hectares) or the Energy Efficiency rates which are based on the service amount. Separate Targeted Rates and Charges • Separate targeted Charges are charges that are targeted to a particular Targeted rates and charges are levied to meet the full cost of water and area of benefit e.g. Water, Sewerage. sewerage schemes, refuse and recycling collections, defined roading improvements, defined marketing and tourism activities, and for other services • Land values, capital values or rating units refers to rateable land values, where Council has been requested to levy such rates. In these instances rateable capital values or rateable rating units as the case may be. Council believe separate targeted rates are the most equitable funding Residual Rate Funding Percentages refer to the residual amount to be • mechanism based of the benefits assessed for the targeted area. funded, after allowance for sources of funds other than rates. Council has adopted differential land value rates to fund the debt servicing • Funding relationship weightings refer to a methodology for allocating the requirement of the Combined sewerage and water schemes, which takes various general-type rates and charges where the highest weighting is account of the median land values for each scheme; and of funding operating always expressed as 100. costs by way of a common uniform annual charge for the Combined sewerage (Where a weighting shows as zero, there is no contribution from that scheme and a differential uniform annual charge for the Combined Water • Scheme. The most significant benefits derived from these combined single area, but where a weighting shows as a number between zero and 100 sewerage and water funding schemes are a smoothing of rating spikes in (e.g. 85), that area will pay a rate or uniform charge (as the case may smaller schemes and better cash flow management through the timing of be) of 85% of any area that has a weighting of 100. capital works. • If all areas have a weighting of 100, the rate in the dollar or uniform charge (as the case may be) will be the same for all areas). Note: Council has the following definition to determine what constitutes a The combined sewerage and water rates and charges do not include the initial • debt servicing requirements for any new schemes not paid by lump sum “separately used or inhabited part of a rating unit”: contributions. Definition 6. The following explanations will give readers an understanding of terminology used in this policy statement. Unless otherwise specified, the term: • A separately used or inhabited part of a rating unit includes any portion inhabited or used by the owner or a person other than the • Uniform Annual Charge (UAC) or Charge refers to a targeted rate of a owner who has the right to use or inhabit that portion by virtue of a uniform amount calculated on each separately used or inhabited part of tenancy, lease, licence, or other agreement. every rating unit; or for some charges, on every rating unit. For the purposes of this definition: • General-type targeted Rates are rates that are targeted to a particular geographic rating area or a differential rating area group. (These rates • A SUIP includes separately used parts, whether or not actually are based on the land value of each property). occupied at any particular time, which are used by the owner for rental (or other form of occupation) on an occasional or long term • General-type targeted Charges are charges that are targeted to a basis by someone other than the owner. particular geographic rating area. (These charges are set differentially for the six geographic areas as a fixed amount on every separately used • A rating unit that has a single use or occupation is treated as or inhabited part of a rating unit). having one separately used or inhabited part. • Separate targeted Rates are rates that are targeted to a particular area of benefit. e.g. Water, Sewerage. (Separate targeted rates are based on 2018-2028 Long Term Plan Page 300