The group A Better Budget for Auckland, which published an alternative budget for Auckland Council in March, has released two new alternative budgets for councillors that it says will not “slash and burn” services and assets. A Better Budget for Auckland has campaigned against cuts to community services and the sale of Auckland airport shares.

A Better Budget for Auckland’s new proposed budget alternatives, released today, are updated to meet the $325 million operating shortfall and detail two options. One increases borrowing up to $197 million and lifts rates to 9.9%, keeping rates under a double-digit increase. The second proposal involves more modest borrowing of $135 million with a higher rates increase of 13%, similar to the rates proposal currently mooted in Wellington.

Both proposals, which have been signed off by an independent economic reviewer, would bring in income of $325 million without selling the airport or cutting community services. Wayne Brown’s current proposal suggests a lower borrowing amount of $100 million, though his earlier proposal indicated $75-$140 million in borrowing would be acceptable.

A Better Budget for Auckland spokesperson India Logan-Riley says: “Our solutions-focussed budgets show that Auckland councillors have feasible options, and that cutting services and selling the airport are neither necessary nor inevitable.”

Calculations done by the group show their first proposal would involve ratepayers with a home with an average capital value of $1.4 million paying $1 more a week in general rates compared to Wayne Brown’s original 4.66% rates proposal. The second proposal would involve the average ratepayer paying $2.30 more a week than Brown’s original budget.

India Logan-Riley adds: “Cutting and privatising services just shunts costs from the community onto individuals, so borrowing and lifting rates as a community are the fairest and most affordable options for Auckland as a whole. It’s not the time for a ‘slash and burn’ budget and we want to see councillors support a budget that will build a thriving city.”

Logan-Riley says: “The Mayor’s proposals have not involved any creative or lateral thinking about new sources of income for Council. Using the Council’s strong debt position to help cover the immediate shortfall will buy us time to consider new revenue streams, such as a targeted rate for the airport precinct, increasing parking charges, or a more progressive rating model.”

Auckland-based tax consultant Terry Baucher says: “These alternative budgets are credible and demonstrate that the numbers can add up without selling the airport, cutting community services, or lifting rates significantly.”

The Council will vote on Wayne Brown’s proposals this Thursday 8 June. The Council has until the end of June to agree on a budget for the year ahead.

Notes to Editors

· The alternative budget proposals are online here: https://betterbudgetauckland.co.nz/We-can-do-better.pdf. Details of rates calculations and assumptions are available for discussion.

· The total rates increase (including flat charges) for a 9.9% rates increase would involve an average ratepayer – with a house with a $1.4m CV – paying $3.91 a week more in rates using the Council’s own method. The total rates increase (including flat charges) for a 13% rates increase would involve an average ratepayer paying $5.29 a week more in rates using the Council’s own method.

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