Huge swings in rates to be clearly shown

Rates and water bills will continue on the basis set by existing councils until 2012. Photo / Northern Advocate

Aucklanders will be told in dollar terms how much their rates will go up or down when a single rating system is introduced for the Super City.

Rates and water bills will continue as set by existing councils until 2012.

After that, many of the region's 500,000-plus ratepayers can expect huge rises or falls.

This is because the eight councils have different rating systems based on valuation methods, uniform charges, business differentials and other mechanisms that will have to be melded into a single system.

The Cabinet has acknowledged the move to a single rating system "may involve significant changes in rating liability for individual ratepayers" and approved phasing in the new system over three years "to manage and smooth these impacts".

When the Auckland Regional Council tried to introduce a single rating system in 2003, increases of up to 467 per cent caused a rates revolt.

The third and final piece of Super City legislation, setting out how the Auckland Council must introduce a single rating system, provided for ratepayers to be told of any rise or fall in rates on a percentage basis.

But in changes reported back to Parliament on Monday, the special Auckland governance select committee has recommended the figures be provided in dollar terms.

Committee chairman John Carter yesterday said percentages did not mean much to people whereas dollar terms would be easy to understand.

It would also make the council more accountable to ratepayers.

The Local Government (Auckland Law Reform) Bill, due to be passed in the next fortnight, also provides for a single water and wastewater pricing system to be introduced by the council-controlled organisation Watercare Services.

Because of political sensitivities over water, Watercare must comply with directions from the Auckland Council when setting water and wastewater prices.

The hot potato will be wastewater charges. User-pays for water and wastewater by Metrowater, owned by the present Auckland City Council, has resulted in water bills of more than $1000 a year for many families.

Under new powers, the Auckland mayor will propose the rating and water charging system. The two heavyweight candidates, Auckland City Mayor John Banks and Manukau Mayor Len Brown, have yet to unveil their policies.

But Mr Brown will today outline a governance policy for the seven council-controlled organisations that will run more than 75 per cent of services under the Super City.

He said he would require the CCOs to hold public meetings and publish minutes. He would also call for a review of the mega-transport CCO after two years if it was not working well.

Mr Banks has also promised to require CCOs to hold public meetings.

Taking it slowly

* A single rating system will be introduced for the Super City.

* Rates and water bills will continue on the basis set by existing councils until 2012.

* As the region's eight councils have different rating systems, the move to a single rating system will be phased in over three years.