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Charitable payments to be phased out sooner

Auckland City Council
Media release

25 September 2008

Charitable payments to be phased out sooner than forecast

Auckland City Council is forecasting the removal of the annual charitable payments made by Metrowater to the council over the next three years.

“This council made a commitment to ratepayers to keep water rates affordable by holding the price of water to council’s rate of inflation,” says Councillor Douglas Armstrong, chairperson of the Finance and Strategy Committee.

“People told us over the past year that they are concerned about the rising price of water. We are keeping water prices as affordable as possible by carefully assessing and managing the impact the annual payment the council receives from Metrowater has on people’s water bills.

“Metrowater has also had to absorb wholesale price increases, which it has achieved by reducing the level of annual payments it makes to the council.

“In our Annual Plan 2008/2009 we looked at how we could continue – or stop – this funding in the future. We decided to transition out of these payments by 2012.

“Recent forecasting showed reductions in these annual payments from $22.445 million in 2008/2009 to $1.507 million in 2011/2012.

“We anticipate these payments being completely removed by 2012/2013 which will mean a significant improvement in keeping your water prices affordable.”

ENDS

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