Sign In / Register
Hot on the heels of the Auckland Mayor’s CCO-reform proposal, Auckland Council has signaled potential rates increases.
Council chief financial officer Ross Tucker said preliminary work for Council’s annual plan had identified a $10 million budget gap and it was still unclear how some financial pressures would impact the annual plan.
Tucker said rates increases could exceed the 5.8 per cent increase planned for the next financial year. He cautioned suggestions for small rates increases for things such as events funding or transport projects.
“We have got some challenges to work through. We might need to adjust some services, some capital expenditure and as always, the question is do we need to adjust rates?
“If you add up a bunch of small increases, it could add up to a number where we are suddenly heading towards a double digit rate increase,” Tucker said.
At a previous meeting, Council’s recovery office signaled that buyouts for storm affected properties had been under-estimated (Hibiscus Matters, November 18).
“That means potentially moving money from some of the longer-term infrastructure [projects] into buying properties now. This means more money going out earlier, which means higher interest costs. There will be impacts on the annual budget,” Tucker said.
Cr Julie Fairey wanted to understand the costs tied to the buyouts.
“We are likely to have increased maintenance of these sites because there are more of them. It will also cost more to clear more sites,” Fairey said.
Chief executive officer Phil Wilson said the council would receive an update on the buyout costs by the end of this year but would not have a fuller answer until February.
