Auckland Mayor Phil Goff has today announced plans to raise rates by 5 per cent next year.
In his "mayoral proposal" for a new 10 year budget Goff said the one-off increase of 5 per cent from July next year would be followed by rate rises of 3.5 per cent thereafter.
The Recovery Budget as he is calling it, is a response to a $1 billion hole in the budget over four years from the impact of Covid-19 while trying to maintain and renew community assets and respond to climate change.
In a press statement, Goff was silent on whether households and businesses will also face higher water bills, which sources said could rise by 8 per cent.
"This Recovery Budget aims to meet the challenges posed by Covid-19 and the massive financial impact it has had on the city, while ensuring that the burden on ratepayers is kept as low and fair as possible.
"This not a slash-and-burn budget but it's also not the budget we had hoped to put out at the start of the year. We have to accept that Covid has changed our financial landscape and change our plans accordingly.
"However, we will strive to deliver the essential services that Aucklanders rely on and maintain the critical investments in the infrastructure our city needs, and which will play a vital role in stimulating economic recovery."
Goff said the budget would involve:
• Locking in savings of at least $90 million each year for the next three years