\u201cThis year isn\u2019t business-as-usual; we are funding the country\u2019s biggest transport infrastructure project ever in the City Rail Link [CRL].<\/p>\n
\u201cWhile other councils are falling into double-digits just to maintain basic services, Auckland is holding the line.<\/p>\n
\u201cBasically, we have a 0% rates rise, plus a new train called the CRL.\u201d<\/p>\n
On the Auckland Council website it states the 7.9% increase in general rates is \u201cmainly due\u201d to the $235 million it will cost each year to run and own the CRL, which is set to open in the second half of 2026. <\/p>\n
However, an amendment to cut the proposed rates increase back to 5.9% has been submitted today by Auckland councillor John Gillon. <\/p>\n
\u201cI think 7.9% is too high when you consider the cost increases everywhere at the moment, and lots of households are really struggling,\u201d Gillon said.<\/p>\n
\u201cIt\u2019s difficult just to make ends meet so now\u2019s not a good time to be increasing rates by the biggest increase that the Super City has had.\u201d <\/p>\n
The North Shore ward councillor said a \u201csignificant number\u201d of councillors have been discussing their concerns with the 7.9% rates increase and have come to an agreement over the wording of the amendment. <\/p>\n
\u201cI don\u2019t want to jinx it at this point. We\u2019ve got a good number of councillors but we\u2019ll just have to see how it goes on the day,\u201d Gillon said.<\/p>\n
The amendment has been seconded by councillor Bo Burns and has also been openly backed by councillor Mike Lee. <\/p>\n
\u201cClearly 7.9% is over the top and unacceptable given the state of the economy and ratepayers being squeezed by the cost of living,\u201d Lee said. <\/p>\n
The Waitemat\u0101 and Gulf ward councillor described the lack of budge from the draft proposal\u2019s 7.9% increase, despite significant opposition in the public consultation process, as \u201cpretty insulting\u201d. <\/p>\n
\u201cThe council hasn\u2019t changed its demand by one dollar. So much for consultation. It\u2019s the old story \u2018Have your say\u2019 and the council has its way,\u201d Lee said. <\/p>\n
Auckland Mayor Wayne Brown released a draft proposal of a 7.9% rates increase for 2026\/2027. Photo \/ Michael Craig<\/p>\n
Public feedback on the mayor\u2019s draft proposal occurred from February 27 to March 29.<\/p>\n
Deputy Mayor Desley Simpson has also expressed reservations about the 7.9% increase, despite earlier supporting the draft proposal, in light of the compounding cost of living impacts from the Iran war. <\/p>\n
\u201cIt\u2019s the first time I\u2019ve been as concerned as I am \u2026 I\u2019d sit in the camp where I\u2019d like to see some give from us,\u201d Simpson told Newsroom today. <\/p>\n
Auckland Council\u2019s Long Term Plan 2024 -2034 (LTP) aimed to reset the council\u2019s financial position after a period of higher inflation, costly storm events, and completion of the CRL.<\/p>\n
The LTP had projected a rates increase for 2026\/2027 of about 11% might be required to fund the $235m annual operating and ownership costs of the CRL. <\/p>\n
However, the LTP set an additional savings target of $106m for 2026\/2027 to achieve a planned rates increase of 7.9%.<\/p>\n
Brown said new inflation forecasts and global fuel pressures \u201cadded a massive $213m risk to our budget\u201d.<\/p>\n
\u201cWithout our $106m savings plan, that volatility could have forced a 15% rates hike on Aucklanders. Instead of taking the easy way out and passing that straight on to ratepayers, we are choosing strict discipline and internal savings.\u201d<\/p>\n
Gillon\u2019s rates amendment suggests increasing the operational savings target of $106m up to $166m for 2026\/2027.<\/p>\n
In order to fund these savings, Gillon\u2019s amendment requests Auckland Council chief executive Phil Wilson report back on several options. <\/p>\n
These include a freeze on: filling non-essential staff vacancies for one year, non-essential travelling, advertising, subscriptions and ceremonies.<\/p>\n
Other cost-saving options include: capping external consultancy and professional services, ceasing the food scrap collection, and lowering or removing the Green Star certification requirement on new builds which aims to minimise energy and water consumption. <\/p>\n
All decisions on the final 2026\/2027 annual plan will be made by the mayor and the 20 Auckland councillors who make up the Governing Body by the end of May. <\/p>\n
North Shore councillor John Gillon.<\/p>\n
Whatever rates increase passes at tomorrow\u2019s budget committee will then be voted on by the Governing Body again at a later date.<\/p>\n
The annual plan will then be adopted in June. <\/p>\n
General rates are based on the capital value of a property and fund a range of services available to all Aucklanders including libraries, pools, parks, roads, footpaths, stormwater services and public transport.<\/p>\n
For the average-value residential property in Auckland, the 7.9% rates increase will equate to $320 a year, or $6.16 a week.<\/p>\n
Brown was critical of the Government\u2019s 2% to 4% 2027 rates cap and questioned how the city would continue to pay for the CRL.<\/p>\n
\u201cPutting a cap on rates isn\u2019t going to solve anything. It will just defer it for a couple of years then ratepayers will be paying even more,\u201d Brown said.<\/p>\n
\u201cCouncils are faced with making decisions that involve significant investment and should not be restricted by Government telling us what we can and can\u2019t do.\u201d<\/p>\n
Separately from the proposed rate rise, Watercare is expecting to increase water bills by 7.2% from July.<\/p>\n