Average Auckland ratepayer could see annual bill increase $613
Tuesday, 20 February 2024
Aucklanders could face a 25.8% rise in Watercare charges from July 1, or $29 per month for the average household.
The “central” rates rise option is a 7.5% rise, which is $270.90 a year for the average value property.
Other rates options going to public consultation are for a 5.5% or 14% rise.
Auckland’s councillors have approved a budget consultation document that includes a 25.8% rise for Watercare fees, and presents options for a rates rise from 5.5% to 14%.
Aucklanders will choose between the “central” option of a 7.5% rates increase for the year beginning July 1, 2024, or the do-less-pay-less option of a 5.5% rise, or the pay-more-get-more option of a 14% rise.
Together with increases to targeted rates, under the central option, the average value residential property would pay $270.90 more rates a year, or $5.21 a week.
That central option comes with a plan for a 3.5% increase the following year, and an 8% rise from July 1, 2026 when the council is due to stump up for the cost of the City Rail Link project.
The government’s announcement last week that it will repeal Three Waters legislation by the end of this week, means that water costs that were previously not to be consulted on, are suddenly included with water and wastewater charges proposed to jump by 25.8% on July 1.
That’s $29 more per month for the average household water bill, a Watercare spokesperson said. This left the average household potentially facing a $613 rates bill hike from the combined cost of the Watercare change and also if the council should select its central option.
The price leap is because Watercare is part of council group finances and its revenue has to be consistent with the debt it carries, Auckland Council’s general manager financial strategy and planning, Ross Tucker, said.
Reducing Watercare’s capital expenditure was “not really acceptable given the demands on Auckland’s water infrastructure”, he said at Tuesday’s meeting of the council’s budget committee.
Manurewa-Papakura councillor, Daniel Newman laid out the financial pressures on the council as it faces the impacts of the CRL, Cyclone Gabrielle, flooding, the demise of Three Waters reform, and the repeal of the regional fuel tax: “The only thing missing is a plague of locusts… there’s things that have happened beyond this council’s control.”
Mayor Wayne Brown said the tricky part was publishing a consultation document when the Watercare charges issue may be solved before the consultation finishes.
“We’re consulting on a 10-year plan in a moving environment.”
Brown has put forward a plan to bundle the region’s airport shareholding with income from leasing its port operation into a managed fund, to be called the Auckland Future Fund.
Councillor Angela Dalton said she is excited to talk to Aucklanders about the future fund.
“In principle, we do need to look at a way forward for our city. But I do regret putting Bledisloe terminal on the table.”
Included in the consultation is the option to return that portion of port land to the council. But Dalton argued that retaining the wharf gives the port a future that includes the cruise industry operating without disrupting ferries.
In a vote, the consultation documents were accepted by all councillors except Ken Turner and Mike Lee.
“My concern is, we don’t have a funding crisis, we have a spending crisis,” said Lee, who is concerned the assets will be sold with the cash put into a fund that “will effectively become a slush fund”.
“It will be cashed up and spent down in no time at all.”
Albany ward councillors John Watson and Wayne Walker voiced their dissatisfaction with wording around consultation on the North Harbour stadium.
Watson took exception to the use of the word deconstruction in stead of demolition.
“It’s an unusual choice of a word. It’s a word used in taking apart a literary composition.”
Both councillors were worried that the future of the stadium had been predetermined before the consultation takes place.
“Frankly Mr Mayor, it’s going to be up to the people of the North Shore to see through this,” said Walker, adding that the plan will elicit a “rallying cry” from North Shore communities .
As the meeting progressed, the mayor’s patience appeared to wane, as he tapped the desk with increasing vigour.
“There’s views for and against all these things. For some people it’s too long, for some people it’s too short… I’m looking forward to hearing about what Aucklanders think about it.”