Auckland household rates and water bills could rise to $5000 a year if airport shares are not sold

The average Auckland household is facing a double-digit rate increase this year, taking the cost of council and water services to $5000 a year.

The real-life impact of Mayor Wayne Brown’s first budget is becoming clear two days out from the crucial vote on the sale of href="https://www.nzherald.co.nz/nz/auckland-mayor-wayne-brown-making-last-minute-bid-to-build-support-for-sale-of-council-airport-shares/GRDIL27PO5HLZKOU7OFX76GECY/" target="_blank">the council’s airport shares, which will shape how much extra ratepayers have to stump up during the cost-of-living crisis.

If Brown can offload the airport shares, which is looking unlikely at this point, household rates will raise by 6.7 per cent. If not, they could rise by 9.8 per cent.

However, council officers have said the figure of 9.8 per cent could be higher, but not “materially higher”.

Auckland Mayor Wayne Brown says he would rather reinstate cuts to the arts and social services than increase rates. Photo / Michael Craig

“There is not a precise definition of ‘materially higher’, as this involves a degree of judgment,” a council spokeswoman said.

“Staff have not given advice on any specific proposals to exceed a 13.5 per cent increase. Materiality would be assessed based on the particular circumstances.”

The proposed 6.7 per cent and 9.8 per cent figures for residential rates are less than the overall rates increases of 9.8 per cent and 13.5 per cent respectively because businesses pay higher rates than households.

If household rates were to increase by 10 per cent, coupled with Watercare locking in a 9.5 per cent rise in water bills from next month, the combined cost for the average household would rise from $4530 to $4970, or an extra $440 a year.

Business rates would rise by 7 per cent or 10.5 per cent under the two scenarios, but six times the household increases in dollar terms.

Watercare is raising water bills by 9.5 per cent from July.

Brown has said he is trying to keep rates down by selling the airport shares and accused opponents of the sale of “dramatically” wanting to put rates up.

“No one wants higher rates bills in this cost of living crisis hurting households when they can least afford it,” he said.

Figures provided to the Herald show a 9.8 per cent rate rise would contribute $121m towards closing the council’s $325m budget hole, and $194m under a 13.5 per cent increase.

Last week, Brown told the Herald he would reinstate deep cuts to arts and social services ahead of putting up rates, and later in the week accused councillors of being “financially illiterate” over the sale, and then denied sending them abusive emails under his name, saying they were sent by staff “in a fit of excitement”.

Councillors opposed to the sale have called Brown’s action “a sign of desperation” and “highly inappropriate”.