No rise in council's fixed charge on Auckland properties

Auckland Mayor Len Brown. Photo / Janna Dixon

A fixed charge applied to all properties in Auckland will stay the same next year after the council's budget committee voted down two attempts to raise it.

Right-leaning councillors failed to raise the annual charge of $373.35 to either $550 or $473.35, a rise of $100.

The charge is applied to every rateable property to make sure all ratepayers contribute a minimum towards council services.

It has divided the council along political lines, with right-leaning charges seeking to increase it to shift the rates burden from the wealthy to the poor. Left-leaning councillors support a lower charge because it helps lower income ratepayers.

Orakei councillor Cameron Brewer said people living in higher value properties had been shouldering the biggest dollar increases in rates bills -- up to 10 per cent a year for the past three years -- and a $550 uniform charge would give them a break.

Franklin councillor Bill Cashmore sought a $100 lift to the uniform charge, based on an earlier recommendation from officers that this level would lead to the least change for all ratepayers.

But Mayor Len Brown, who was looking for the 'sweet spot', said he could not support an increase because of the effect of new property valuations.

Mid to low-value property owners had seen a big increase in property valuations -- leading to higher rates increases -- and a higher uniform charge would be a "double whammy", he said.

The budget committee voted 18-5 to retain the existing charge. The councillors who voted against the status quo were Cameron Brewer, Chris Fletcher, Dick Quax, Sharon Stewart and George Wood.

The uniform charge is one factor in setting household rates next year. Other factors include the overall rates rise (3.5 per cent proposed), new property valuations and a new formula for business rates.