Auckland region to be rocked by rates rises

A rates shockwave is about to hit cities in the Auckland region, with average bills for 2006-07 topping $1500.

Auckland City home owners will pay on average $1540 for 2006-07 after the council settled on a 13.3 per cent rise to pay for a raft of new capital projects, including $800 million on revised plans for the eastern transport corridor to upgrade local and arterial roads and improved public transport.

But their neighbours to the west and across the Waitemata Harbour will share the burden of costs to keep up with growth.

On the North Shore, the average rates rise by 9.49 per cent to $1594 and in Waitakere, a 6.8 per cent rise takes the mark to $1581. Manukau City rates lift by an average of 5.9 per cent and the average bill will be $1480.

High public interest in getting a fairer system of rates and charges has forced the North Shore and Waitakere City Councils to promise a decision next year on whether to follow Manukau City in switching from the land value basis of rating.

After hearing public views on the complex question this month, the city councils of Auckland's north and west have decided they need more details on the merits and costs of changing.

Choices include capital value - the full value of land and improvements - or the annual value or rental value of the property which is used by Auckland City and, from 2006-07, by Manukau.

Councils hold elections late next year so North Shore and Waitakere will seek further public feedback to avoid adopting something new that is unpopular.

In the meantime, these councils have just framed 10-year budgets which warn ratepayers to expect annual rises of about 7- 8 per cent a year.

Waitakere finance chairman Janet Clews said 530 submissions were considered on the capital value system and 428 spoke against it.

"However, land value is not the most equitable system for the city and we need to continue to do the work to find the system that is," she said.

"If we had chosen capital value, 32 per cent of our ratepayers would have a decrease in their rates and a further 17 per cent would have had an increase of less than the average [8.5 per cent]."

Opposition was strongest from those who faced the largest rises.

A West Harbour resident said his rates would go up from $1973 to $2511 or 27. 2 per cent, while a Kelston apartment owner faced a 45.2 per cent rise from $795 to $1155.

But councillors believe that many people were only opposed to capital value being introduced this month because they wanted more time to adjust their budgets to cope with the rates rise.

Henderson home owner Russell Thomson said he hoped his submission about the burden of rates on a one-income family "does not fall on deaf ears".

The new rates bill on his four-bedroom house would be about $1700 which was $350 more than the 2004-05 bill.

"It is ridiculous when you also have six-monthly water bills of $260 and $8 a month for rubbish bags collection."

North Shore City Mayor George Wood said this year's public consultation came out in favour of greater equity and fairness for all ratepayers in rates and other charges.

The council needed to do more work on how to get a fairer deal and would look at the basis of rating, charging wastewater by volume and residential and rural rating differentials.

Under the present land value basis, the average rate for a North Shore home is $1594. If the council sticks to its long-term spending plan the average will be $3151 in 10 years.

Albany home owner Marion Wadham said she was dreading her next rates bill.

Her bill is $1235 for her three-bedroom home and the council says homes of a similar value will pay about $80 more, including compulsory museum levies.

"I'm a single parent and to try and get ahead and provide a decent roof over my son's head I'm penalised.

"Rates cripple me every quarter and it's extra money you have to find.

"On top of that we pay $1.30 for rubbish bags and about $120 for water - depending on how many times I water the vege garden and fill the paddling pool."