Auckland Mayor Wayne Brown says he has "no intention" of proposing double-digit rate increases as details emerge of what could lead to a rise of 13 percent over two years.
Last week the Auckland Council agreed on Brown's amended annual budget, which will see average residential rates rise by 7.7 percent and the sale of about 7 percent of the council's 18.9 percent shares in Auckland Airport.
But the NZ Herald reports household budgets could tighten as water bills might rise 19 percent - as much as $1000 over two years.
While the journey to the council's annual budget was a rocky one this year, a report by the Herald reveals next year's budget could be just as challenging.
Council finance officers outlined to the newspaper the contributors of what could lead to a large hike in rates next year. They did stress the 13 percent potential figure is "very preliminary" and many factors need to be worked through during the development of a new 10-year budget.
It's reported the 13 percent figure is made up of:
- 3.5 percent figure set in the 2021-2031 budget
- 3.5 percent increase to take into account high inflation
- 4.25 percent to cover $85 million of the budget hole that was temporarily covered by borrowings in 2023's budget
- 1.75 percent reinstating cuts this year to targeted rates and the plan to gradually reduce business rates.
But, in a statement to Newshub, a spokesperson for Brown said he has "no intention of proposing a double-digit rates increase".
"A key focus of the long-term plan will be on ensuring household rates are affordable by making Auckland Council run more efficiently and productively, as well as funding other revenue sources."
