'Cold turkey' plan for rates bill rises

Chris Fletcher, who has won a seat on the new Super City council, congratulates former Auckland City Mayor John Banks on all his hard work as Auckland City mayor. Photo / Natalie Slade

Councillors split on move to finalise Super City shift

About 4000 households face rates increases of 40 per cent or more next year under a "cold turkey" proposal causing deep divisions among city councillors.

The budget committee yesterday voted 10-7 to implement big rates rises in one hit next year.

The decision will be felt hardest north of the harbour bridge, where 2122 of the 3738 households facing a 40 per cent-plus rates increase are located.

The big rises are at the extreme end of the latest property valuations and the end to implementing a single rating system for the Super City.

About 126,000 households face rates rises of more than 10 per cent and 25,000 more than 20 per cent.

Under a complicated rate-setting formula, rates for about 160,000 ratepayers, including businesses, will decrease.

This month, the council voted to increase the overall rates rise from 2.5 per cent to 3.5 per cent next year. The average household increase is 5.6 per cent; inflation is running at 1 per cent.

Mayor Len Brown led the case for adjusting rates in one hit next year, saying the time had come to stop tinkering after three years of transition to a new rating system.

Councillor Chris Fletcher argued against the "cold turkey" plan, which she said would inflict pain on the community.

Moves to cap next year's rates increases at 20 per cent and talk to the Government about continuing an annual rates cap of 10 per cent were narrowly defeated.

Labour councillor Ross Clow accused colleagues of indulging the rich and socking the poor, while Deputy Mayor Penny Hulse said the council could not go running to the Government every time things got tough.

In the pipeline
Auckland Council rates proposal from July next year:
126,000 households face 10%+ increase
25,000 households face 20%+ increase
3738 households face 40%+ increase
160,000 ratepayers will get rates decrease