Auckland Council approves 5% rate increase for public consultation

Auckland councilors have voted unanimously in favor of a public consultation on a 5% rate increase next year.

The proposed increase is part of a “recovery budget” drawn up in the context of a $ 1 billion impact from the impact of Covid-19. Rate hikes of 3.5 percent will follow thereafter.

The rate hike was part of Phil Goff’s “mayor’s proposal” published last week, and described as the “middle ground” by finance committee chair Desley Simpson.

Some elected representatives supported higher rate hikes next year, including Councilman Daniel Newman, who was willing to come out with a 7 percent rate.

Two local boards, Rodney and Waitemata, asked questions about higher rate increases of between 8% and 12% next year and ongoing 5% increases in the next two years.

Councilmember Chris Fletcher said a 5 percent rate hike was a step too far and could alienate taxpayers.

Goff said that despite a projected $ 1 billion loss of revenue from the impact of Covid-19 over four years, it was the responsibility of councilors to move forward and deal with the situation.

Despite the loss of revenue, he said, the council will make great strides for the city with an investment of $ 31 billion over the next 10 years, up from $ 26 billion in the budget of the last 10 years.

Goff said council officials believed the budget proposal would maintain critical service levels, but that doesn’t mean the council could do all the renovations.

The council’s renewal program is under extreme pressure. Regional and local parks, holiday parks, sports fields, libraries, coastal assets like boardwalks and cemeteries are in the spotlight.

Local boards will be asked to close or sell old community assets to pay for the new assets.

Other proposals in the budget are to sell $ 70 million of assets and find savings of $ 90 million a year for three years. There is a $ 150 million package to address climate change, which includes only buying carbon-neutral buses starting in July next year.

The council also plans to temporarily increase its debt limit from 270 percent of debt to income to 290 percent for three years before returning to the current level.

Councilwoman Cathy Casey said this is the toughest budget she has been involved in in 27 years as a councilor.

She said there was no “joy” in the budget, but a great sense of relief that it keeps Auckland moving and valuable services running.

Councilor Pippa Coom was delighted with the climate action package in response to the council’s declaration of a climate emergency that sets a 50 percent target to reduce carbon emissions by 2030.

“It’s just a starting point and I think we’re going to do a great job getting that message across.

“There will be much more important decisions that we will have to make where we change priorities and where we place our investment,” he said.

Said Council Member Chris Darby: “Prepare for the tough road ahead.”

Maori Statutory Board Chairman David Taipari, a member of the finance committee that approved the budget proposal today, praised Goff and the councilors for taking charge of the fate of Tāmaki Makaurau and bringing the budget to the people.