Auckland Council has tabled three options for rate rises in order to bring the FTP to fruition. These rate rises are seen as inevitable. The mayor of Auckland, Wayne Brown, has proposed a staggered household rates increase as part of a long-term budget plan aimed at boosting the city’s coffers, coupled with filling a debt hole by selling or leasing strategic assets. The proposal, known as the Long-Term Plan (LTP) 2024-2034, has the provisional approval of councillors after being adopted by the Budget Committee but still requires public consultation.
The focus of the proposal is the establishment of The Auckland Future Fund, estimated at $3 billion (US$1.9 billion), aimed at boosting the city’s wealth. This also includes a plan to lease some land at Ports of Auckland for development. The mayor stated that Auckland Council has relied on borrowing money to bridge the revenue and expenditure gap. He also highlighted that the council’s strategic assets have not performed as well as expected from a well-managed diversified fund.
Three options for rate rises have been proposed. The first would require average rate increases for residential ratepayers of 7.5 percent, 3.5 percent, and 8 percent, respectively, for the first three years. The second option is for ratepayers to “pay more, get more,” which would see ratepayers take a significant hit in the first year, followed by subsequent increases in the following years. The third option is “pay less, get less,” which would see more modest rate increases.
Water rates are also expected to rise after the controversial Three Waters Proposal was scrapped. The scheme, orchestrated by the former Labour-led central government, intended to take the control of water assets away from local Councils that had historically controlled them. The upgrade of aging infrastructure requires ratepayers to foot the bill, meaning Auckland ratepayers now face an increase of 25.8 percent, according to the city’s provider Watercare.
Public consultation on the long-term plan will open on Feb. 28, and feedback must be received by March 28. At a Council meeting, Mr. Brown stated that he was anticipating a mixed reaction to the rate rises and was looking for a broad view across the whole city on whether they think it’s a good move or not.