Shore rate rise region's biggest

The Auckland Regional Council was challenged last night over its new "rates smoothing" move which has landed North Shore homeowners with a rate rise that is more than twice the regional average for 2005-2006.

The regional council proposes an overall average residential increase of 4.8 per cent.

However, this is not the case if you live on the North Shore, say Mayor George Wood and management chairman Gary Holmes.

North Shore people, in fact, face a 10.7 per cent average rates rise, as calculated using the ARC's new concept to smooth the impact on rates bills of the three-yearly cycle of property revaluations by councils for rating purposes.

The ARC says that in order to smooth the differences between districts which have recently undergone revaluations and those which have not, it will get "estimates of projected valuation".

It will predict a current valuation based on last year's value and market trends.

This means that for those districts which did not have a general revaluation as at last September, the council has obtained an estimate of projected valuation from a registered valuer showing changes to rateable value.

The ARC calculates its rates on the capital or improved value of a property, unlike other local councils.

North Shore, Auckland City and Manukau City take their turn for the usual three-yearly revaluations this year.

However, what has sparked North Shore councillors' concern is that the ARC reckons valuations for North Shore homes have increased faster than any other district since the last full valuation in 2002.

North Shore homeowners were among the leaders of the "rates revolt" against the ARC's rates rise of 2003.

This rise was three times the increase of Auckland City ratepayers to the regional council.

Mr Wood and Mr Holmes said their council opposed the proposed average rates increase because of "pronounced inequities in rates increases between local authorities within the region for similar services from the regional council".

They said the ARC should instead introduce a package of reduced general rates and a uniform annual general charge to make a "smoothed" general rate increase more reasonable for North Shore citizens.

This would also go some way to softening the blow of significant rates increases faced by Waitakere City and Rodney District, which will be rated on fresh property valuations this year.

ARC chairman Michael Lee told the North Shore council meeting that the rates decision was based on maintaining the most equitable allocation of rating burden across businesses and residents.

"We have been trying to equalise or smooth out the differences in rates rise between the area."

Mr Lee said that without the smoothing device, North Shore would have a significant increase next year because of rapid increases in property valuation.

"We have worked hard to bring our projected rates increase of 12 per cent down to 4.8 per cent across the region."

ARC rates proposal

* Average 4.8 per cent increase for homes across region.

* This means $7-$36 increase for most in 2005-06.

* Smaller than expected increase for Rodney ($35)and Waitakere ($15) because of new estimate of projected property valuation.

* North Shore property values have risen faster than any other since the last full valuation so will receive a greater than expected increase ($24).

* Many homes will be hit by phasing in of metropolitan transport rate this year.

* Auckland City increase $10 and Manukau City $4 and Franklin $6 while Papakura pays $16 less.

* A business rate differential of 1.6 will apply to the general rate to soften the increase for home owners.