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Ratepayers in Auckland face significant increases from July 1 if proposals in a budget consultation document, which is currently out for public feedback, are adopted.
Auckland’s Long-Term Plan (2024-2034) covers everything from transport, drinking water and stormwater to parks and community, city and local development, environmental management and economic development.
It also suggests establishing an Auckland Future Fund to create a more diverse set of investments that can be used to manage future challenges such as global pandemics, extreme weather and environmental challenges.
For ratepayers, it will mean a general rate increase of between 5.5 percent (do-less-pay-less) or 14 percent (pay-more-get-more), or a central option of 7.5 percent, which would add $271 to the average annual rates bill.
But the big increase will be in water charges which are recommended to rise by nearly 26 percent – adding a further $348 to the average household bill annually.
Watercare is also proposing to increase infrastructure growth charges (development contributions) by 25.8 percent.
Watercare’s Board of Directors chair, Margaret Devlin, says the board had to balance the vital need to invest in new water and wastewater infrastructure – ensuring safe and reliable water and wastewater services for Auckland – with council’s directives to maintain a debt-to-revenue ratio of 340 percent and to ensure that growth funds growth.
“We know many Aucklanders are struggling with the cost of living, and we understand the news of this projected price rise will not be welcome,” Devlin says. “We want to reassure them that central and local government are working together to achieve a financially sustainable water model, and we understand their initial conversations have been positive.”
Watercare chief executive, Dave Chambers, says funds raised will help deliver hundreds of projects for Auckland, including the Waiwera water and wastewater servicing project.
“We have already reviewed our infrastructure programme and identified projects that we can safely defer in the short term,” Chambers says. “However, to ensure we keep providing reliable services now and into the future, it’s still vital to invest $1.257 billion in the coming year, which equates to a daily spend of around $3.44 million.”
Chambers says Watercare is on target to achieve around $14 million in operational efficiencies this year, which will be replicated next year.
The draft Long-Term Plan’s central proposal includes a $13.4 billion investment by Auckland Transport to make public transport faster, more reliable and easier to use. It also includes strengthening Auckland’s resilience to flooding with the new Making Space for Water Programme of more than $1 billion of investment, which includes government co-funding.
The draft budget is out for feedback until March 28 and final decisions will be made in June.
Have your say
Online: visit akhaveyoursay.nz/ourplan for information, webinars and consultation documents • Phone: 09 301 0101 • Auckland Council’s social media pages • Local libraries
Local LTP concerns
Cr John Watson says more detail is needed on a number of proposals in the LTP, but he notes issues that may be of particular local concern:
Transport: A $50 weekly cap for public transport covering bus, trains and inner harbour ferries is proposed. At the same time there is a proposal to “…introduce premium fares for some ferry services that are expensive to operate”. Cr Watson’s view is that the cap should apply to all public transport services, including outer harbour ferry services like Gulf Harbour. • There is a proposal to “… charge for park and rides with a focus on those that are generally full and well served by connecting bus services”. • The development of a ‘time-of-use charge’ pricing scheme is proposed to help manage traffic congestion.
Hibiscus Coast Youth Centre: Council has signalled its intention to remove its $100,000 contribution to the funding of this centre.
North Harbour Stadium: This stadium serves the Hibiscus Coast as well as the North Shore. Council is considering demolishing it and selling the land. This would leave the region without a stadium. Alternative options are available, Cr Watson says, to keep the stadium and change the operational management so more events can be attracted for people on the Coast and elsewhere, as used to happen with the North Harbour Stadium Trust.
