Calculating an 'apples to apples' figure for residential rates is difficult because councils use various mixes of rates, levies, and user charges. Our approach is based on work by Napier City Council to find an average residential rate. We sent an official information request to all councils requesting average residential rates using the formula below: 

Average residential rates   

The average residential costs of rates and other Council charges, where average residential costs = (X + Y) / Z.  

X is the total of all rates (general and targeted) charged by the Council to residential rating units;  

Y is the total amount of user charges or levies applicable to residential rating units (for example charges relating to metered water, infrastructure contributions, refuse collection, fire protection etc.); and  

 Z is the number of residential rating units (however defined by the Council) within the Council’s district or city. If the Council does not have a classification for residential, please use the closest definition (such as urban).  

Does not include Council charges that are not part of the rates demand (for example retail sales of Council rubbish bags). 

Average non-residential rates  

The average non-residential costs of rates and other Council charges, where average non-residential costs = (X + Y) / Z.   

• •          Please ensure that the figures used (X, Y, and Z) are disclosed in the response, where: 

X is the total of all rates (general and targeted) charged by the Council to rating units except those defined as residential*;  

Y is the total amount of user charges or levies applicable to rating units except those defined as residential* (for example, charges related to metered water, infrastructure contributions, refuse collection, fire protection etc); and   

Z is the number of rating units except those defined as residential* (however defined by the Council) within the Council’s district or city. If the Council does not have a classification for non-residential, please use the closest definition (such as commercial).  

Does not include Council charges that are not part of the rates demand (for example, retail sales of Council rubbish bags).   

While we think this approach is useful and fair, the average residential rates figure should be a guide only. It does not, for example, factor in councils' reliance on commercial rates. It also puts unitary authorities at a disadvantage. Unitary authorities (Auckland Council, Nelson City Council, Gisborne, Tasman, and Marlborough District Councils, and the Chatham Islands Council) perform the functions of a regional council and therefore can be expected to have higher rates than other territorial authorities.