KEY POINTS:
The Auckland Regional Council has a $34 million surplus after lifting household rates by an average of 4.9 per cent last year.
Auckland City Mayor John Banks last night reacted to the news by urging the council to put $20 million of the windfall into upgrading Eden Park for the 2011 Rugby World Cup.
But No More Rates campaigner David Thornton described the surplus as staggering, after the public outrage of the "rates revolt" four years ago.
"I'm staggered that the council would have anything like that amount, and I hope it will translate to a lesser rates increase when councillors sit down in the next month to set the new rates requirement," he said.
"All large councils should look at how accurate their forecasting is and heed a criticism of last year's rates inquiry team that said councils were over-taxing people."
ARC chairman Mike Lee said the surplus was not expected when the rates rise was settled.
The council tried to match its income and its spending, but sometimes the amount budgeted for was underspent.
"A $34 million surplus is a lot, but every penny of it is going to be needed if we are going to complete ambitious public transport plans including electrification of the urban rail system and increased services," Mr Lee said.
Mr Banks said a local authority with a surplus was an event of historical significance.
He hoped the "surprising windfall" would give the ARC an opportunity to put $20 million towards Eden Park's World Cup upgrade.
"The cup will be great for all of us and this is one way of sharing the cost equitably," the mayor said.
The average ARC rates bill is about $220.
The average increase in that bill for 2007-08 is again 4.95 per cent.
Auckland City homeowners will pay 0.38 per cent more and businesses 9.04 per cent. For North Shore homeowners it is a 5.06 per cent rise, for Manukau 6.61 per cent and for Waitakere 6.6 per cent.
Mr Lee said the ARC had spent more than $100 million on improving public transport last year.
An ARC spokesman said the budget forecast was not wrong.
There was a variance with the actual figure because of a one-off $21.3 million payment from the Government for work on the western line double-tracking project. The ARC had not expected to receive the money as early as it did.
The spokesman said underspending on transport projects also contributed to the surplus, but that money would be needed for when the projects were carried out.
The ARC's report for 2006-07 says its total income was $229.1 million.
Of this, 55 per cent came from rates and 20 per cent from its subsidiary Auckland Regional Holdings, steward of $1.4 billion of assets including Ports of Auckland. The rest came from service fees, grants and facilities income.
The council spent $199.7 million.
Of this, 51 per cent went to public transport, 24 per cent to natural environment and heritage and 14 per cent to regional parks.
Auckland Regional Council
* Average rates bill: $220
* This year's rate increase: 4.9 per cent
* This year's surplus: $34 million
