Auckland Council has set a rates increase of 5.8% from July.
- Auckland households face a $324 rise in rates and water bills from July after a 5.8% rates increase.
- New property valuations will redistribute rates, affecting properties differently based on value changes.
- Mayor Wayne Brown highlighted savings measures and a $7 million shortfall for events funding.
The average Auckland household faces a $324 rise in rates and water bills from July after councillors approved a 5.8% rates rise today.
The $324 figure comprises the 5.8% rates increase and a 7.2% rise in water bills from July.
However, the bills for many ratepayers will be skewed this year with the release of new property valuations used to set rates.
The new valuations do not change the amount of money the council collects from rates, but they help redistribute rates across the city.
Under an allocation mechanism, owners of properties where the value has risen by more than the overall average increase will pay more in rates.
The opposite is true for valuations below the overall average. Their rates will fall relative to the general rates increase.
The budget committee today approved the rates rise, which will be formally ratified later in the day by the governing body.
Mayor Wayne Brown said: “It’s a good budget, I’m proud of it, and it’s mostly what Aucklanders have asked for.”
He said the council was working on the 10-year budget with a 5.8% rates rise in year two, and had no intention of wandering from it.
Brown cited issues such as improving shared services between the council and council-controlled organisations (CCOs), and an increased dividend from the council-owned Port of Auckland, as measures creating savings for ratepayers.
“Overall, we’ve done a lot of problem-solving already, and my main direction for this annual plan is to stay the course.”
After the Government’s unwillingness to introduce a bed tax for visitors, the council voted to plug a $7 million shortfall for major events and destination marketing.
The shortfall will be filled by $2.5m from the city centre targeted rate, $500,000 from the mayoral budget, voluntary contributions from the industry, and the council’s events body Tātaki Auckland Unlimited, using reserves to bridge the remaining gap.
Deputy Mayor Desley Simpson said the council spent $16.5m on events, yet Adelaide spent 10 times that amount.
She said the council needed to take the issue seriously and up its game in future years if it wanted to be seen as a major hub for events.
Meanwhile, the Reserve Bank cut the Official Cash Rate today to 3.25%, with major banks also dropping mortgage interest rates.
Lower mortgage costs will give homeowners more money in their back pockets, though some economists fear lowering the OCR could also contribute to inflation.
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