Shore couple hit with 657pc rates rise

By STUART DYE and WAYNE THOMPSON

An accountant yesterday revealed he is facing what is thought to be the highest rate increase on an ARC levy - a 657 per cent rise in charges.

Ray Tibbits was stunned when he received the invoice this week.

The 60-year-old, who lives with his wife in a North Shore apartment, has seen his fee shoot up from $53.32 to $403.48.

He could not believe it was correct.

"My first reaction was to contact everyone I know to see what their rates were and if a mistake had been made," said Mr Tibbits.

The three-bedroom apartment, above an office block in Anzac Rd, Browns Bay, has a capital value of $585,000.

But as it has just a small "footprint" the land value is just $84,000.

Mr Tibbits, who is semi-retired but does occasional contract work, said he planned to pay the smallest amount possible before seeing if there was a way round paying the full cost.

"It's the size of the increase that stuns me.

"As an accountant, I know that if someone is on a fixed income they must have a fair bit of investment to meet an extra $400 or so a year."

Another North Shore resident, Colin Mindel, faces a 356 per cent increase on last year's bill.

The bill is for $477.22 compared with $104.73 last year.

He said he was a victim of the regional council's choice of a capital value-based rating system as opposed to the land value system used to calculate the ARC levy previously.

Mr Mindel and his wife, Patricia, bought their home in city fringe Torbay three years ago.

It was revalued last September at $680,000 capital value and land value $140,000.

"All our street had low land value and houses are quite nice and highly valued so, of course, our capital value has just shot through the roof ... "

"I'm writing to the ARC as a protest. But apart from that I'll pay on drip feed and they can wait for their money ...

Other possibilities were getting together with neighbours to mount a bigger protest, and inquire whether the ARC went through the right process in its rating decision.

The accountant said he used his car for business so he did not use bus services. Occasionally, Mrs Mindel took a bus into Auckland City.

"Where we are, we are miles away and the bus service at Torbay is not terrific.

"I don't begrudge ARC for the good things that they do with parks and the water and biosecurity, but I do for the transport system, which is what we are paying more for."

Devonport resident Warwick Squire is taking a harder line in his protest at his rates bill rising from $300 to $766.

"It's outrageous - $362 of it is for public transport, which we don't use.

Mr Squire said he was going to pay last year's rate plus 5 per cent - "and they can take me to court for the rest."

In Rodney, Whangaparaoa Peninsula residents Don and Gill Menley reported their ARC rates rose from $131.82 to $400.55.

"It is totally unacceptable. The capital value system is wrong in principle for a number of reasons," the couple said in a letter to the ARC.

"We are retired and on a fixed income so this savage increase has motivated us for the first time in our lives to object in writing to a public body.

"Our objections will not stop at this: we will be joining with like-minded folks to continue to get you to charge a reasonable levy."

A Birkenhead couple, John and Tania McDonald, said their ARC rates have risen from $71 to $343 for their home worth $490,000.

"We are a single-income family with three children, aged 9, 8 and 4," said Mr McDonald. "Where do they think this money will come from?

"Our choice to have one parent at home for our children is fast becoming impossible."