ARC facing residents' revolt over rates rise

The Auckland Regional Council is facing a fresh rates revolt from residents who say they are being forced from their homes.

Some rates bills have almost doubled as house prices continue to soar - with more rates demands to arrive in people's mailboxes this week.

Former Auckland mayor John Banks is leading the charge against the ARC's "naked ambition", as he steps back into local politics.

It was just two years ago that the ARC faced a rates rebellion in Auckland after the widespread introduction of its first direct billing system.

This time, the hardest hit areas are in Rodney, North Shore and Waitakere.

But Auckland and Manukau homeowners are not off the hook, as the council warns next year's revaluation will probably mean a "substantial" rates increase for them.

While this year's average rate increase is 4.8 per cent for the region, Rodney has been hardest hit with an average 22.3 per cent increase across the board.

One Orewa resident is furious that the regional council rates for his family home have hit $1120, on top of the $6000-plus he pays to the district council. Some of his neighbours say their ARC bill has almost doubled.

But ARC chairman Mike Lee said the new "smoothing rating system" had actually saved these ratepayers money: property revaluations could have pushed up rates 61 per cent under the old system.

The new system will spread the increase over several years.

"Property values are completely outside the control of the ARC," said Mr Lee.

"Rodney and Waitakere ratepayers have had their properties revalued this year. There will be greater swings in their rates, particularly if property owners have undertaken building work that has resulted in significant capital appreciation and if they live near the coast."

The ARC will glean an extra $9.2 million from Auckland ratepayers in 2005, with the rate take increasing from $108.2 million to $117.4 million. Auckland Regional Holdings will provide it with another $79.7 million and other revenue sources with $32.9 million.

This will be used to fund public transport initiatives, regional parks, environment protection and to help manage the region's rapid growth.

That doesn't ease the fears of St Heliers couple Gerarda and Oliver Bossard, who are waiting for the latest ARC bill to arrive.

"I am scared," says Mrs Bossard, aged 77.

"They say it's an average 5 per cent increase but we live in a big old family home in a nice area and they base it on your house value. What if it's gone up? Maybe they don't understand that our house value may increase, but our income stays the same." 

Don Chapman of Waitakere said he and his wife were surviving on a fixed income and said they would be hard hit by the latest increases.

"I'm not unique, I represent thousands of older people who will find these rates a huge burden. They may have a family home where they have lived for a long time but survive on a benefit and struggle to make ends meet. A double rates bill like this from the district council and the regional council just can't be budgeted for."

Mr Banks said the regional council was "nothing more than an environmental watchdog" that needed to be substantially dismantled - not given even more powers.

He had a 20 per cent increase in his ARC bill this year, which he could afford to pay - but he knew plenty of others could not find the extra money.

Mr Banks predicted a big backlash against the ARC as more people started receiving their rates demands, with many due to arrive this week. "I'm getting calls from people already saying 'Banksie, do you know what's going on' ... It seems like the ratepayers of Auckland are finally waking up."

ARC councillor Robyn Hughes is calling for an increase to the business levy instead, but says hers is a "lone voice".

Marney Ainsworth, who led Wake Up Auckland's protest against big regional council rate rises in 2003, said: "It's not just poorer people that can't afford these bills. Plenty of affluent people also have tight budgets and can't afford them either."

But Mike said his council had responded to public feedback by reducing the average rate increase to 4.8 per cent rather than an original 10.1 per cent target.

It had also resurrected the business differential which mean that sector now contributed approximately 27 per cent of the total rates revenue, in line with what it had paid towards regional rates in the past.

- HERALD ON SUNDAY