KEY POINTS:
Auckland City rates are forecast to rise by 4.8 per cent next year, but the contentious issue of water rates has been put off.
After three years of soaring rates, the new John Banks-led council yesterday took the first step to holding next year's rates to 4.8 per cent, which is the council's rate of inflation.
Household rates will go up by about 6.4 per cent as the council continues with a programme of reducing higher rates paid by business.
Mr Banks told yesterday's preliminary budget meeting that ratepayers wanted affordable progress following the perception that the previous council was reckless with its spending.
In order to cut next year's planned rates increase of 10.2 per cent to 4.8 per cent, officers have recommended modest savings and higher user charges for things such as parking, but the biggest saving will be made from cuts to capital spending.
This will be achieved by axing some projects altogether.
On the preliminary hitlist are a new swimming pool in Avondale costing about $10 million, big cuts to improving community facilities such as libraries, and a $2 million programme to improve stormwater quality.
Smaller items, such as plans to create a climate change position at a cost of $100,000, have also been axed.
Other projects have been deferred. It is proposed that the Pt Erin pool not be redeveloped for three years.
However, an officer's recommendation to put back a $9.2 million contribution towards the Q Theatre for three years will be reviewed after fears that would sink the new performing arts theatre project just up from the Town Hall in Queen St.
City Vision leader Richard Northey criticised the Citizens & Ratepayers majority for axing many projects yesterday before being provided with enough information to take a decision.
One item the council did defer for more information was a proposal by officers to spend nearly $3.2 million on running expenses for the 2011 rugby World Cup.
The bill to ratepayers for the cup is approaching $43 million. This includes $20 million Mr Banks has promised for infrastructure work around Eden Park. Officers have initially set aside a further $20 million for transport projects in the wider area.
Mr Banks said ratepayers opposed the policy of taking "charitable payments" from the council-owned water company, Metrowater.
"People see these charitable payments are at worst immoral and at least reprehensible, or somewhere in between," he said.
But he urged the council to take a cautious line and not commit itself to any course of action until the level of council savings was known.
This is because the council has yet to decide how to deal with the lost revenue of about $24 million-plus a year from doing away with the charitable payments.
Deputy Mayor David Hay said the council could keep taking the charitable payments, phase them out over two or three years, or do away with them in one hit.
LIKELY TO GO
* A new swimming pool in Avondale costing about $10 million.
* Some improvements to community facilities such as libraries.
* A $2 million programme to improve stormwater quality.
