Auckland City sets tighter rates payments deadline

Retired academic Brian Earnshaw used to look forward to having a bit more in his pocket in July and August from not having to make his first rates payment until September. Not now.

His first payment is due on August 21 because of the Auckland City Council's decision to bring forward the first payment by one month and reduce the number of payments from five to four.

Ratepayers who - like Mr Earnshaw - pay by direct debit can still make 10 monthly payments.

But the first payment of $111.83 on his 50-year-old weatherboard home in Mt Roskill has been brought forward by one month.

"From a budgetary point of view, I was looking forward to a holiday in July and August from paying the rates. But they are hitting me earlier and I object to that," said Mr Earnshaw.

He finished paying last year's 10 instalments in June, and now has to pay this year's first instalment this month.

"The council has transferred its cashflow problems to me," he said.

"It just seems to me some kind of skulduggery or scurrilous financial practice to suddenly change the date at which they start charging the rates."

The council looked at several instalment options for "increasing the cashflow benefits".

One was to have three instalments, but this idea was rejected because one-third of rates would have been payable in the week before Christmas.

Instead, the council opted to reduce the number of payments from five to four and bring forward the first payment to August 21.

The other instalment dates are November 20, February 20 and May 21.

Finance committee chairman Vern Walsh said last night the new system would create a $1.37 million cashflow benefit to the council and ratepayers.

"Instead of nine months, ratepayers pay over 10 months, the dates have changed and there is now not a requirement to make a payment directly after Christmas - the first payment in the new year is February."

He said ratepayers could still spread their payments and make them by direct debit, either monthly or fortnightly.

"We fully considered all aspects of this change and felt the $1.37 million benefit to ratepayers justified the change."

Mr Walsh said any ratepayers having difficulty paying should contact the council as there were several ways it could assist.

* A campaign has started to replace the present system with an alternative which will include restraints on councils' ability to increase expenditure without community approval.

In a weekend newsletter to supporters, NoMorerates.com organiser David Thornton suggested, in response to supporters' calls for action, that ratepayers pay only the same rates as last year, plus 4 per cent for inflation.


HOW THEY VOTED

For the rates increase:

Mayor Dick Hubbard (Independent).
Deputy Mayor Bruce Hucker (City Vision).
Neil Abel (City Vision).
Leila Boyle (Labour).
Cathy Casey (City Vision).
Christine Caughey (Action Hobson).
Bill Christian (Independent).
Glenda Fryer (City Vision).
John Hinchcliff (Labour).
Richard Northey (Labour).
Penny Sefuiva (City Vision).
Richard Simpson (Action Hobson).
Faye Storer (Independent).
Vern Walsh (City Vision).

Against the increase:

* Doug Armstrong (C&R Now).
* Linda Leighton (C&R Now).
* Toni Millar (C&R Now).
* Scott Milne (C&R Now).
* Graeme Mulholland (C&R Now).
* Noelene Raffills (C&R Now).

WHEN THE RATES MUST BE PAID

Auckland City Council
Four instalments
First instalment: August 21

Manukau City Council
Four instalments
First instalment: August 25

North Shore City Council
Six instalments
First instalment: August 15

Waitakere City Council
Four instalments
First instalment: August 21

Auckland Regional Council
Single instalment due on August 28, September 11, September 25, October 9 depending on where you live.

* Councils have different early discounts and direct-debit options.

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