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Auckland Mayor Len Brown - Source: ONE News -
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The new Auckland Council is likely to come at a significant cost to ratepayers and it appears that cost will hit sooner rather than later.
The council today unveiled its first rates proposal - a 4.9% rates rise.
The news is likely to hit many Auckland families hard as they count the cost of Christmas and nurse the hangover from the global economic recession.
The council's Strategy and Finance Committee met this afternoon to discuss the idea of streamlined rates for the entire region with the 4.9% increase to get the ball rolling.
Auckland mayor Len Brown said the council is "working hard to understand the extent and nature of the structure it inherited" when the councils merged on November 1 this year.
He said the rise was higher than he had hoped.
"This, for me, is a starting point and I expect [the council] to go down from here, not up," he said.
Brown said the cost of setting up the new council format is likely to hit ratepayers in the pocket for years to come.
"We still have not got a firm and clear view of the cost of transition and I suspect that cost will continue to impact for many years ahead," he said.
The proposal has yet to be agreed and sparked vigorous debate around the council table.
But the new council realises that more money needs to be found if the mayor's expensive transport infrastructure and waterfront development projects are to go ahead.
"I believe that 4.9% is a figure that we can justify and sustain at this time," Brown said.
Auckland central's last rates rise was just over 5%, while Manukau's ratepayers had to cover a 4.9% rise.
There is some good news though - with the Auckland Regional Council ceasing to exist, there will be no additional rates bill from them.
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