Aucklanders' rates bills to rise by 7.9 percent on average after council vote

Aucklanders' rates bills will rise by an average of nearly eight percent this year.

Auckland councillors voted on Tuesday, 14 to seven, to accept an annual budget proposed by Mayor Wayne Brown.

It comes with an ambitious target to cut operating costs by $106 million in the next financial year.

Balancing spiking fuel costs, with the reality of funding the City Rail Link build, as well as running costs of the enhanced rail services, the budget lands on an average rates rise of 7.9 percent.

But the budget didn't pass smoothly. Before councillors voted to accept the proposed budget, an ammendment was put up by North Shore councillor John Gillon, seeking a lower rates rise of 5.9 percent, supported by Bo Burns, councillor for the Howick ward.

Burns pointed out that the average rise hits some ratepayers harder: "In many parts of Auckland, particularly areas that have experienced significant property value shifts, residents are facing effective increases closer to 12 to 15 percent, which amazingly just under a thousand Aucklanders are facing 50 percent or more, due to the valuation redistribution."

Gillon and Burns sought an extra $60m in cuts from the council to reduce the rates rise.

Deputy mayor Desley Simpson put into perspective the target for spending cuts already planned.

"The mayor's budget already absorbs well in excess of $200m in financial pressure, probably about $230m, now that's close to the entire rates revenue of Hamilton City Council which is the fifth biggest council in New Zealand."

She said adding another $60m of savings to that was "more than a mammoth hill to climb", and would take the amount of savings the council would need to find to nearly three-quarters of a million dollars a day, every day, for a year.

With the council's credit rating at risk of being down graded, she said "the risks and consequences of not achieving that target for me is simply too great".

Councillor for Waitākere, Shane Henderson, was irked by the suggestion of slashing regional events to find extra savings: "We have a suggestion to cut regional events such as Diwali. The Santa parade isn't safe according to this resolution. How many Aucklanders want us to cut something like that?"

This year's budget includes the $235m-cost of funding and running the long-awaited City Rail Link train stations, and upgraded rail service.

Mayor Wayne Brown wasn't accepting that some costs, including those for the rail upgrade, be pushed out for a year and potentially derail plans for smaller rates rises in coming years.

"We've got this railway, if you don't pay for it this year it's just going to be more next year."

The budget councillors agreed to for the year from 1 July includes $3.6 billion of capital spending on transport and water infrastructure, community servies and regional assets.

It includes the Making Space for Water flood programme, and funding the second half of the Central Interceptor wastewater pipe.

Auckland councillors will give the budget, and the rates rise, the final sign off in late June.

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