A decade of distress for Auckland ratepayers.

Rates increases of 3.5% for each of the next 10 years is only half of the story that Auckland Council ratepayers will discover when they receive a summary of the Council’s proposed 10-year Long Term Plan[LTP] due for delivery next week.

Over the same period the Council is proposing to reduce business rates by 21% and transfer that cost directly to residential ratepayers.

Also being proposed is a new ‘targeted rate’ commencing on 1st July to fund the Council’s transport programme until new funding arrangements can be implemented.

Residents are also likely to be faced with a direct charge for collecting the household rubbish and recycling materiel – without any compensating reduction in the general rates bill.

These new and increased charges will affect all ratepayers, and many are wondering when it will all stop.

Ratepayers who are also motorists are also in the firing line, with proposals for additional fuel taxes or the introduction of a motorway charge – although the Government will need to approve new legislation for these.
The fuel tax option would also require an additional 1% rates increases each year.

Without these new forms of income Auckland Transport admits that maintenance of the existing roading and footpath networks will reduce dramatically to the extent that at the end of the 10-year plan there will be a deferred maintenance obligation of $1.25 billion.

The overall prospect for ratepayers over the next ten years is for annual ‘average’ rates increases of between 5.6% and 9%, new transport taxes, new user charges plus additional charges to motorist and a deteriorating roading system.

The 10-year plan presents a grim picture of a decade of distress for residential ratepayers and for their tenants.

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