Part C: Summary of our financial approach

Explaining your rates

Funding rates over the next 10 years

The average rates increase is 3.5 percent over the first 3 years of this plan and an average of 4.0 percent over 10 years. This is after accounting for the following:

Year-on-year rates increase in value ($m) and percentage

Graph: Proposed year-on-year rates increase in value ($m) and percentage

Indicative rates for the first year of this planTop

The table on page 176 shows the indicative residential and commercial property rates (inclusive of GST) for 2018/19.

Making sure rates are kept affordableTop

We have set rates increase limits to make sure rates are kept affordable over time. These limits are:

The increase limit is to stay within the cap of $350 million for years 1-3, and $495 million for each of the 10 years of the plan. This can be calculated by taking the rates limit less the rates funding requirement from the prior financial year. Our forecast rates and rates increases are within these limits each year of the 10-year plan.