ARC rates will decrease for most ratepayers

29 June 2004

Following the adoption of the Auckland Regional Council’s regional community plan on 28 June, most of the region’s 459,000 ratepayers will see a decrease in their rates this year.

This decrease – to be enjoyed by 86% or 395,000 ratepayers – is assisted by a low average rates increase of 1.9% and the introduction of a 1.5 times business differential.

The ARC dropped its proposed average rates increase of 3.2% to 1.9% due to a funds surplus for the 2003/04 financial year. The 1.9% increase is comparable with the average rate of inflation.

ARC Chairman, Gwen Bull, says the Council carried out significant community consultation prior to adopting the plan and she is confident the Council has addressed many of the concerns raised by ratepayers.

She says the rates reduction will be appreciated by the majority of residents throughout the region. However, due to the introduction of a new transport rating policy and a business differential, and revaluation of properties in Franklin and Papakura, some ratepayers will see increases. This includes properties, including rural, affected by the 20% of the transport rate requirement included in the general rate (previously 12%). They are the exception, not the rule.

Last year the average business ratepayer received a reduction in their ARC rates due to the shift from local council rating policies to the ARC’s rating policy. This year most business ratepayers will face increases.

The majority of these business ratepayers will experience these increases as a result of the introduction of the 1.5 times business differential.

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