Mayor proposes balanced rates policy

Mayor Len Brown has today proposed a change to Auckland Council’s rating policy for its upcoming Long-term Plan 2015-2025, in light of recent changes in property values across Auckland.

The latest revaluation figures in Auckland have altered the balance between business and residential ratepayers. While the average capital value in the business sector rose 15.8 percent, residential properties rose by an average of 34.8 percent.

“The increase in the value of Auckland properties makes no difference to how much money council receives in rates, but the resulting distribution of the payment of rates would mean business pays 8 per cent less, while residential ratepayers face an average 5 percent increase – this doesn’t seem fair to me,” says Mayor Brown.

The Mayor is proposing to offset the impact of revaluations by holding the business sector contribution to rates at the same proportion as 2014/2015 (33.3% of $1.4 billion), this will prevent additional rates being transferred to residents.

From 2016/17 this proportion will start to decline again until it reaches 25.8 percent in 2025/2026.

The Mayor is also proposing that the Uniform Annual General Charge (UAGC) – the single fixed rates charge that every ratepayer pays – remains at the current level, adjusted for the 2.5 per cent rate increase, of $381.

“Differences to the UAGC have an impact on how rates are distributed across our communities and is always hotly debated.

“In the revaluation many of the most affected properties were likely to be owned by middle to low income households. Keeping the UAGC as it is will lessen the impact on these families.

“If we were to look at minimising the number of ratepayers facing significant changes we would reduce the UAGC to $250. Like three years ago, I am not proposing to go entirely to the least change position.”

Council will consult the public early next year on the draft Long-term Plan 2015-2025, and final adoption is due in June 2015.

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