North Shore, Christchurch top rate hikes

Barry Curtis

North Shore ratepayers are facing a rates' rise of 7.4 per cent this year, with Christchurch residents not far behind on 7.35 per cent.

The North Shore rise is the biggest rise in percentage terms of the four main cities in Auckland. Waitakere is second with a 6.69 per cent rates rise pencilled in.

Manukau rates will increase 5.9 per cent and Auckland City has trimmed a projected rise of 8 per cent to 3.6 per cent by borrowing $23 million.

The Auckland Regional Council will today raise rates by 4.9 per cent a year for the third consecutive year.

For other main councils outside the Auckland region, Christchurch has the highest proposed rate increase, with the draft annual plan proposing a rise of 7.35 per cent.

Wellington City Council has approved a range of initiatives and changes that will result in a rates increase of 4.37 per cent. Dunedin is facing an overall rates increase of 6.5 per cent - cut back from 10.5 per cent.

Some key rate rises:

North Shore - 7.4 per cent

Christchurch - 7.35 per cent

Whangarei - 7 per cent

Waitakere - 6.69 per cent

Dunedin - 6.5 per cent

Manukau - 5.9 per cent

Hamilton - 5.47 per cent

Auckland Regional Council - 4.9 per cent

Wellington - 4.37 per cent

Tauranga - 3.9 per cent

Rotorua - 3.7 per cent

Auckland City - 3.6 per cent

Manukau Mayor Sir Barry Curtis said the 5.9 per cent increase would apply to all properties where the valuations had not changed from last year. Manukau has adopted an annual value rating system to eliminate big variations of the past.

Sir Barry Curtis said this year's rise played an important part of building for the future while maintaining a responsible financial position. Manukau household and business rates were the lowest in the region.

North Shore and Waitakere councils will confirm their rate rises this week.

North Shore has a proposal for an average rise of 6.9 per cent with an additional 0.5 per cent for museum levies.

The total 7.4 per cent takes an extra $2.28 a week from the average household.

On a property with a land value of $316,000, the rates bill will be $1713.

The council's 10-year budget forecast annual rises of 8 per cent, mainly due to interest costs on loans taken out for transport, wastewater and parks. Lower debt and interest costs and deferring some capital works has allowed the 8 per cent forecast to be trimmed this year.

Waitakere will strike its rates tomorrow. Finance chairwoman Janet Clews was hopeful the 6.69 per cent rise on the table would be pegged back under 6 per cent from extra income from the solid waste unit and fines.

More than 80 per cent of the Waitakere budget is for libraries, parks, roading and stormwater.

Regional museum levies will add 1.36 per cent to whatever rates income the council decides is needed.

The ARC proposes a 4.95 per cent average rate rise. It is planning to increase public transport funding to $150 million, compared with $124 million in the 2006-2007 financial year.

The Employers and Manufacturers Association (Northern) has slammed sky-rocketing spending by councils, particularly in Auckland.

Chief executive Alasdair Thompson said Statistics New Zealand figures showed council spending increased 12 per cent in the year to March.

"Council staff costs went up 11.1 per cent during the year, up 4.1 per cent in the March quarter alone. Rates went up 11.4 per cent on average across the country," Mr Thompson said.

"North Shore city is the worst of Auckland's local councils. Its rates went up last year by 11.92 per cent."

North Shore Mayor George Wood told National Radio the council was up against people being enticed with bigger salaries by the private sector and going overseas.

"It had to compete and pay a premium to get good quality staff."

Mr Wood said the leaky building crisis and private building certifiers going out of business meant the council had to increase staff numbers in the resource consent area considerably.

"It may not look good fleetingly glancing at it but, when you start looking behind the scenes and read into why those numbers have increased, I think you can justify it," Mr Wood said.

- additional reporting: Chloe de Ridder