[ad_1]
Auckland Mayor Phil Goff is proposing a one-time rate increase of around $ 36 per household next year to allow the city to “address the challenges posed by Covid-19.”
Auckland Mayor Phil Goff. Source: 1 NEWS
Dubbed the “Recovery Budget,” the 10-year budget wants to increase average overhead rates by 5 percent by fiscal 2021, which would represent $ 36 a year on a residential property valued at $ 1 million, the median price. of housing in Auckland.
Sales of “surplus property” and a prolonged period of high debt levels are also on the Auckland City Council’s letters.
Goff said he wanted to go back to a 3.5 percent annual increase in rates for the financial year, from 2022 to 2030.
He said that the proposal “focused on [Auckland’s] Reconstruction of Covid ”.
“While not all Auckland residents will be delighted with a one-time rate increase of $ 36, it is a one-time measure that equates to less than 70 cents a week for the average property,” he said.
“This increase will allow us to do more in transportation infrastructure, including addressing road safety, making our city more resistant to drought, continuing our response to climate change, protecting our kauri trees and maintaining our parks and sports fields.”
The rate hike would cause the council to keep its $ 31 billion infrastructure spending program, Goff said. This represents an increase from the $ 26 billion set aside in the 2018 10-year budget, with proposed spending increases for transportation, water, and parks.
“While we are facing the impact of the loss of revenue from Covid-19, it is important that we maintain investment in infrastructure to help the city recover from the current recession,” Goff said in his proposal.
“This not only stimulates the economy, but creates valuable long-term assets for future generations.”
The proposal also predicts that the council’s debt-to-income ratio will remain above the 270 percent limit set in its financial strategy for longer than expected.
Earlier in the Emergency Budget, the ratio was predicted to return to the “sustainable” figure of 270% in June next year.
Auckland City Council was temporarily allowed to borrow up to 290 percent earlier this year in response to Covid-19 and Auckland’s drought.
Goff said he wanted debt levels to return to their current level after the first three years of the 10-year budget.
Meanwhile, the sale of Auckland Council properties worth $ 191 million has so far been approved.
Goff said he supported a goal of raising $ 70 million per year over the next three years from asset sales or other business deals, such as long-term leases.
The plan is expected to go up for public consultation early next year.
It is the continuation of the July “Emergency Budget”, which increased general rates by 3.5 percent to help cover the $ 1 billion in revenue lost over the next three years caused by the Covid pandemic. 19.
Most of those who participated in the council’s consultation for the emergency budget said they preferred a rate increase of 2.5 percent or less. Only 28 percent opted for a 3.5 percent rate hike and 25 percent wanted a zero increase.
The Auckland Council publishes a 10-year long-term budget every three years, with annual budgets published every year in between.
