Auckland councillors today approved a 7.9% rates rise for households next year, to go out for public consultation in February.
The steep increase is primarily to fund an annual bill of $235 million to operate the $5.5 billion City Rail Link, once it opens to passengers next year, and pay the interest and depreciation costs of the mega project.
The 7.9% rate increase is contained in Auckland Mayor Wayne Brown’s “mayoral proposal” for next year’s budget and is in line with the rate increase in the council’s Long-Term Plan.
For the average household, already strained by the cost‑of‑living crisis, rates will climb from $4023 to $4341, a weekly total of $83.
The decision to put the budget out for public consultation was made by the budget and performance committee.
In a foreword to the draft annual plan, Brown said he was continuing his work to “Fix Auckland”. In the last term, he noted, strong progress was made in strengthening financial discipline, improving value for money and delivering the major reforms Auckland needed.
“Now we finish the job.”
The mayor has acknowledged the 7.9% average household rates rise was higher than he would have liked, but said it reflected the costs of the City Rail Link, a project he has criticised for blowouts and delays, but now sees as vital to reinvigorating Auckland and driving economic growth.
Councillor Christine Fletcher said a 7.9% rates increase would be a struggle for many people, and it would be good to have a breakdown of the 7.9% figure.
A motion from North Shore councillor John Gillon to consult ratepayers on covering a $15.2m shortfall in local board budgets for next year was voted down. Gillon argued the council had misjudged its “fairer funding” model for local boards and said the issue should be addressed in next year’s budget.
Brown told councillors not to even think of supporting the motion, saying pressure needed to be put on local boards to find savings.
“We have got to have pressure at all levels to find money to save. I hope you [committee members] are rational enough not to be sucked into this nonsense,” he said.
Councillors also agreed on high-level policy objectives for the break-up of Auckland Transport, which will involve the council-controlled organisation being stripped of its planning and road-controlling functions and becoming a public transport entity.
Brown said Auckland Transport reform would be the “absolute focus” of the council’s governing body over the first six months of next year.
Councillor Shane Henderson said transport reform was the biggest change by the council since it was formed in 2010.
“We are making the transport system more democratic and allowing communities to have more of a say in how they get around their city,” Henderson said.
Councillor Mike Lee said: “It is important we are not creating Auckland Transport lite, but something more significant.”
Public consultation on the budget runs from February 27 to March 29.
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