$60m rates bill despite user-pays collections

The Auckland Council expects that even with its user-pays household rubbish reduction plan, it will need about $60 million from rates to cover the cost of recycling and organic and inorganic collections.

Councillors who yesterday demanded costs for the scheme when it starts in three years were shown a graph showing a net rates cost of $60 million.

But from 2017, the rates requirement dropped to about $50 million in 2022.

"As we go forward we expect these costs will be further refined," said infrastructure and services manager John Dragicevich.

He said the net rates cost did not take into account factors such as growth and inflation, which were distortions and did not reflect growth in revenue sources over the 10 years.

Councillor Noelene Raffills, who led the waste minimisation plan panel, said councillors could take comfort from the fact that costs would be controlled.

The bottom line was that when the plan started in 2015-16 the net cost on rates would be no more than it was the previous year.

She said the panel was aware of vulnerable communities and that time was needed for education on how to cut household waste and so reduce the collection bill.

The panel asked Mayor Len Brown to talk to Housing New Zealand, the Department of Social Welfare, Work and Income and landlords about how tenants could handle their fortnightly rubbish collection when there was a charge every time the bin was emptied.

"There is work to do here," she said.

The council believes there are 130,000 rental homes in Auckland.

Mr Dragicevich said that in Manukau, the switch to paying for the rubbish collection from rates to user-pays would save landlords about $80 a unit a year.

"The idea is to ask Housing NZ to pass on the saving to tenants to make it easier for them."