Auckland household rates increase to be approved today

Photo / Chris Gorman

Plans to raise household rates in Auckland by 5.6 per cent next year and 4.5 per cent a year thereafter are due to approved for public consultation on a new 10-year budget today.

Mayor Len Brown has proposed an average rates increase of 3.5 per cent a year, but new revaluations and a gradual lowering of business rates will lead to higher rates for households.

About 126,000 households - more than one in four - face rate increases of more than 10 per cent next year, 25,000 households face increases of more than 20 per cent and 3738 households a 40 per cent-plus increases.

About 160,000 ratepayers will get a rates decrease.

Mr Brown promised to hold rates to 2.5 per cent this term, but after a Local Board revolt at plans to slash $800 million for parks, community services, town upgrades and other core services he reneged and won backing for a 3.5 per cent annual rise.

The $800 million of cuts were reversed, but the 10-year budget still contains a number of reductions in services, including reductions in parks maintenance, such as less mowing and removal of streets gardens that are expensive to maintain; standardisation of library hours across the region and reduced spending on community development.

The budget also contains a proposed $2 motorway toll or a mix of higher rates and a regional fuel tax to plug a $12 billion-plus transport funding gap over the next 30 years.

If Aucklanders - and the Government which must approve any new transport taxes - do not accept the alternative funding sources, the council will have to slash capital spending on transport by nearly $3 billion to $6.9 billion over the next decade.

Funding for walking and cycling will virtually come to a halt until 2021, as will other key public transport projects like the Otahuhu, Te Atatu and Manukau interchanges. There will no money for a North-Western busway.

The budget does lock in funding for the $2.5 billion city rail link, with work due to start late next year or in 2016.

The draft budget will go out for public consultation on January 23. Submissions close on March 16.