Herald NOW speaks with newly elected Auckland Mayor Wayne Brown about the city’s biggest challenges, from public transport to storm recovery and council spending.
Aucklanders are being asked to have their say on this year’s annual plan, which comes with a 7.9% rates increase to fund the running costs of the City Rail Link.
The increase will mainly cover the annual $235 million bill for interest and depreciation on the $5.5 billion project onceit opens to passengers this year.
It is the largest rates rise since the Auckland Council was formed in 2010.
Rates for the average household, already strained by the cost-of-living crisis, will climb from $4055 last year to $4375. This is an increase of $320, or $6.16 more a week.
Mayor Wayne Brown has acknowledged the 7.9% average household increase was higher than he would have liked. He said it reflected the costs of the rail link, a project he has criticised for blowouts and delays but now sees as vital to reinvigorating Auckland and driving economic growth.
Continued investment in water and wastewater projects.
Continued work on urban development programmes, including Drury, while reassessing priority locations such as Northcote, Henderson, Avondale and Manukau.
This year's rate rise for Auckland residents will cover the City Rail Link's operating costs.
Brown said this year’s budget, which comes into effect on July 1, was about continuing to do things better, faster and cheaper, while continuing to boost performance across the council.
“My expectation is simple: deliver smarter services, maintain what we have, and get more from every asset. A major focus for the coming year is transport reform. There will be a new public transport service provider, with all other transport functions brought into the council so decisions are simpler, faster, making us more accountable,” he said.
“We are also progressing with other CCO [council-controlled organisation] reform, including a more commercial approach to urban regeneration, better property management, and stronger economic development.
“My expectation is that we keep working on bringing our costs down to avoid further burden on ratepayers, while providing appropriate and accessible support for those experiencing financial hardship.”
Consultation on the budget closes at midnight on March 29.
Auckland Council’s annual rates revenue has nearly doubled from $1.57 billion to $3b since 2010. Photo / Jason Oxenham
A Herald investigation in October last year found the council’s annual rates revenue has nearly doubled from $1.57 billion to $3b since it was formed in 2010.
Over that period, the typical household’s yearly rates rose by 85.4%, from an initial $2025 to $3800 in the 2024-2025 financial year. The average rate increase was 4.52%.
While the hefty rise in rates may surprise many, it coincided with 34% inflation, a 22% population increase, and major boosts in the council’s other revenue streams and infrastructure investment.
Council financial strategy manager Michael Burns said rate increases have averaged 2.16% a year above inflation, helping fund key priorities such as public transport, water quality, storm recovery and resilience, environmental initiatives and the response to Covid-19.
To keep rates as low as possible, he said, the council has reduced its reliance on rates revenue, from 49% of total income at the start of the Super City to about 35% today.
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