ARC votes to keep last year's rating system

By WAYNE THOMPSON

The Auckland Regional Council proposes the same rating system this year as that which brought households increases as high as 657 per cent last year.

But the outcry over last year's rates bills has created an opening for change - to a system that promises to ease the ratepayer's burden.

Councillors last month voted 7-5 to keep the present system, which indicates an average 3.2 per cent increase in rates for the region's 460,000 rateable properties.

But councillors face an election in six months and preference for the status quo will be severely tested by the time they meet late next month to approve the annual plan and strike the final rate for the year.

All councillors are happy that four rating system choices are put up for public comment as part of the draft annual plan consultation.

Property owners are invited to comment by May 3.

Last year's overall rate increase was 34 per cent. But it was far greater for some because its impact depended on different property types and those within the rateable passenger transport area.

This year's choices include introducing a business differential rate to lower rates on homes, and ways to spread the controversial public transport rate. There are winners and losers in all options.

Residential

Under the present system, the total transport rate, general rate and biosecurity rate are divided among seven local council areas and rates will rise an average 3.2 per cent. Papakura and Franklin residents may pay more because of recent property revaluations.

Variation One introduces a 1.5 times differential to business properties. This would result in a drop of 3- 7 per cent for most home-owners. It would save 300,000 home-owners between $5 and $500.

Variation Two proposes that all ratepayers pay 20 per cent of transport costs instead of the present 12 per cent. The remaining 80 per cent would be spread across four rating areas and include differentials related to the levels of public transport in each area.

The inner urban area differential would be 1.25, metropolitan 1.0 and settlements 0.5, while rural ratepayers pay nothing.

Most ratepayers would get either a drop or increase over 3.2 per cent.

But residents of Waiheke Island and Waiuku would be brought into the settlements transport rating area because they have rates-subsidised bus services.

They were exempt last year and this idea could hit Waiheke's 4200 ratepayers with a 62 per cent increase. That rate, though, could be phased in over three years.

Variation Three is the same as Variation Two, but also includes a 1.5 times business differential. This would ease rates for most home owners by up to 34 per cent, though 17,700 North Shore residents in the inner urban area would pay 9 per cent more and Waiheke and Waiuku residents 50 per cent more.

Settlements

Pukekohe, Beachlands-Maraetai, Riverhead, Kumeu and Helensville are losers under the status quo. Last year, they paid full transport rates like the city areas, despite a lower level of service.

In response to petitions, the council is proposing a boundary change to the transport rate area this year, which drops these places to "settlement" area rate.

It will be half that paid in the greater metropolitan area. The boundary change also means inner urban ratepayers would pay a quarter more than those in the greater Auckland area.

Business

If differential rating came in, businesses would pay a higher rate in the dollar on their property value than homes. Last year, home-owners paid more to ARC rates than before. Promoters of differential rating say it recognises the extra cost of providing services to business. Business groups say a differential cannot be justified under the capital rating system used by the ARC and will add to costs that cannot be passed on to customers. No regional council has a differential rate for business, but city councils like Auckland and North Shore do.

The Variation One differential means a rates rise of about 48 per cent for 28,000 businesses. Variation Three, however, would give businesses increases of 26 per cent up to 63 per cent if they were in the inner transport area. In the settlement area, business on Waiheke and in Waiuku would pay 125 per cent more.

Rural

These properties do not pay a target transport rate.

Rates Rebellion spokesman David Thornton said ratepayers needed to be aware that although the ARC was proposing only a 3.2 per cent increase for this year starting July 1, it was also planning a further 13.2 per cent rise the following year. He urged ratepayers to attend any meetings in their area on the rates issue and to make submissions.

Have your say

The ARC has a website questionnaire. It outlines four options on how rates could be spread and also asks whether ratepayers want a $10 charge to buy more regional parks.

The questionnaire is printed in the ARC newsletter, RegionWide, which was delivered before Easter. People can also fill out the questionnaire over the phone, 968-3254 (or 0508 968-7729 if outside the calling area) or request a printed copy.

Formal submissions are welcome and will be heard by the council next month. The questionnaire and submissions close on May 3.

To find out your approximate rates under each option, go to Auckland Regional Council

Herald Feature: Rates shock

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