KEY POINTS:
Local authorities want Government permission to try extra ways of raising money so they can afford $30.8 billion needed for capital projects in the next decade.
In a submission yesterday to the Inquiry into Local Government rating, Local Government New Zealand and the Society of Local Government Managers warn of a substantial rise in rates in the next decade.
"One of the major drivers in rates rises is the need to upgrade and expand infrastructure, or reduce levels of service," say Basil Morrison, president of Local Government New Zealand, and Phillippa Wilson, president of the managers society.
"Investment in infrastructure is a must for economic growth and also carries significant national benefits.
"The pressure on rates means that supplementary tools are needed to ensure our cities, districts and towns are world class." City and district councils had about $29.5 billion worth of projects planned and the figure for regional councils was $1.3 billion.
This was about double the level of capital spending in 1994-2003.
Property taxes accelerated over the 1990s but the organisations' latest forecast was that for the next decade the average increase in the total rates take per household would be 60 per cent - from $2250 to $3600.
In the cities, the increase would be 67 per cent.
Concerned about peoples' willingness to pay such higher rates, the organisations recommended to the inquiry a range of policy and legislation moves for the Government to urgently investigate.
They noted that Government funding for local projects that had a "national good" element would come from GST and income tax revenue.
The councils asked for a review of road toll restrictions.