Councillor warns Auckland faces risk of rates revolt

Councillor Chris Fletcher says Auckland faces the real risk of a rates revolt. Photo / NZ Herald

Auckland faces the real risk of a rates revolt, says councillor Chris Fletcher.

The Albert-Eden councillor was speaking at a budget committee debate today on providing some relief to the worst hit ratepayers.

A series of factors, including revaluations and the final step to a single rating system for the Super City, means about 30,000 households face a rates increase of more than 20 per cent.

Councillor Denise Krum moved an amendment to cap rates increases at 20 per cent, which would increase rates by 0.6 per cent.

She said there was tremendous pressure on those facing 20 per cent-plus rates increases, many of whom were in poorer suburbs like Pt England and Glen Innes.

Under earlier figures, Ms Krum said, the average dollar increase for this group was $1377.

Mayor Len Brown said he could not support adding 0.6 per cent on rates, saying it would add one inequity with another.

The council has been moving to a single rating system over the past three years. When the final step is taking in this year's budget everyone will pay the same rate for the same valued property across the region.

Mrs Fletcher said people were frightened.

"We are dealing with pockets in the community where there is going to be substantial pain. There are going to be howls of outrage about rates and you run a very real risk of a rates revolt," she said.

The budget committee defeated Ms Krum's proposal by 15 votes to 8.

The committee is discussing a range of budget proposals today before voting on a general rates increase of 2.5 per cent.

Yesterday,the committee voted for a targeted rate of 4.4 per cent to top up spending on transport.

The combined impact of the targeted rate and general rate is 6.9 per cent overall, according to council documents.

Because of valuations and a move to lower business rates the combined impact on households is a rates increase of 9.9 per cent.

Factors, including the latest valuations and final step to a single rating system, mean about 30,000 ratepayers will have rates increases of more than 20 per cent.

Large numbers of ratepayers will also get a rates decrease.