KEY POINTS:
Owners of average value homes in Waitakere can expect a rates rise of nearly 3 per cent, or about $61 for 2009-2010.
This is the result city councillors were seeking when draft budget talks began yesterday.
They are mindful of the tighter economy and a bitter reaction to last year's 6.95 per cent increase for homes and an average 28 per cent rise for 1200 businesses.
Yesterday, they knocked 1 per cent off the officers' recommendation that council costs go up by 3.95 per cent.
On an average home in the city with a land value of $280,000, this would have cost $1.30 more a week.
The proposed 2.93 per cent rise compares with increases flagged by Auckland City Council of 2 per cent and North Shore City of 5.9 per cent.
Waitakere's budget plan chairman Janet Clews said that tightening budgets in an economic recession must be balanced by the need to maintain basic services.
"To do that we are going to have to delete or defer some projects."
Cuts are unlikely to affect the council's share of the big infrastructure projects at New Lynn, Westgate and Hobsonville, which Mayor Bob Harvey told Prime Minister John Key were part of the city's recovery package to boost the local economy and jobs.
Chief executive Vijaya Vaidyanath said the timing of infrastructure works to support growth in those places placed considerable pressure on the council's cash flow and presented increasing loan repayment costs.
The council's net debt at June 30 would be $471.2 million.
On the bright side, new properties would bring in an extra $400,000 in rates next year.
Mrs Vaidyanath said external levies would add 3 per cent to rates bills. For example, Waitakere's levy for the new Auckland Regional Amenities Funding Board was $970,000.
Businesses and owners of high-valued land, are unlikely to get a decision on changing from a rating system based on land value to a capital value one.
That debate will go on hold until after the report of the Royal Commission of Inquiry into Auckland Governance.
