18 November 2014

Council agrees same rates for same value properties

Auckland Council’s Budget Committee has rejected capping rates increases or decreases as part of its proposed rates policy for 2015/16, resulting in a fairer rates distribution among residential ratepayers.

For the past three years, council has capped rates increases at 10 per cent for Auckland households. This was funded by limiting decreases.

The cap was put in place to limit what would have been large increases for some people as council transitioned from eight inherited rating policies to one.

Today’s decision now means that all ratepayers who own similar value properties would pay the same rates. Many of those ratepayers facing the largest changes are yet to fully move from legacy council rating policies or have seen major increases in their property values.

The decision means the average rates increase for residential ratepayers is 5.6 per cent as a result of recent changes to the ratings policy, which include:
• Average rates increase of 3.5 percent from 2015/2016
• Plus 1 per cent transfer from business to residential rate payers
• Plus 1.1 per cent arising from revaluation adjustment for farm/lifestyle to residential ratepayers

The majority of ratepayers, around 85 per cent, will have rates increases of less than $7 per week or, in some cases, rates decreases.

Please note: A report on NZ Herald’s website this afternoon incorrectly creates the impression that either all, or a significant group of ratepayers will face a 40%-plus rates increase, when in fact this relates to less than 1 percent of ratepayers.

Committee chair Mayor Len Brown said today’s decision was about ensuring fairness to ratepayers.

“Today’s decision not to include a rates cap both on increases or decreases is to ensure ratepayers with similar value properties are paying the same rates no matter where in Auckland they live – I think Aucklanders will agree that’s the fairest move.”

The Governing Body will be asked to adopt the budget committee decision next week.

Aucklanders will have the opportunity to have their say on this policy during consultation on council’s 10-year budget early next year.

The budget committee agenda is online at http://infocouncil.aucklandcouncil.govt.nz/Open/2014/11/BUD_20141118_AGN_5544_AT_SUP_WEB.HTM

ENDS

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