The proposed tariff review comes after commercial property values in high-density areas increased by an average of 100 per cent when the new valuation roll took effect in January, resulting in rates charges rising by more than 200 per cent in some cases.
According to a council report, the increases prompted concerns from business owners who argued that the higher charges were making it difficult to sustain operations and increasing the cost of doing business.
Council acknowledged that the new valuations had significantly increased commercial rates and said a review was necessary to ensure charges remained reasonable while supporting the viability of businesses.
As part of the proposed changes, commercial properties with land values of up to US$40 000 would receive a 58 per cent reduction in rates, while those with land values above US$40 000 would receive a 49 per cent reduction.
The review will benefit 1 083 commercial accounts but will reduce council’s monthly billed revenue by an estimated US$90 094.
Despite the anticipated loss in revenue, council believes the lower tariffs will make rates more affordable and encourage businesses to pay their accounts regularly.
“It was envisaged that due to the review of the tariff, the charges would be affordable to the business community, resulting in regular monthly payment of rates,” the report states.
Meanwhile, council says it billed approximately US$11 million to 186 152 accounts as of September 2026. However, the local authority was carrying an opening debt of US$149.1 million as at 31 August 2026.
During September, council collected about US$1.1 million through various debt recovery initiatives, targeting both current bills and outstanding arrears.
The report, however, highlighted resource constraints affecting debt collection efforts. Council said its credit control section has only four vehicles available to serve notices, issue final demands, and enforce service restrictions, a situation it described as inadequate for a growing city.
According to the report, the shortage of vehicles is limiting the full implementation of council’s credit control and debt collection policies, making it more difficult to recover outstanding debts.