Sign In / Register
Auckland Council may have saved $60.2 million in the last financial year, but ratepayers won’t be seeing any relief on their rates bill anytime soon.
A report to council’s Revenue, Expenditure and Value Committee on August 20 said council savings were $10 million above forecast and had come from moves such as the removal of rubbish bins and less garden maintenance.
Cr Greg Sayers asked if the savings could mean a reduction in rates for Aucklanders.
“Next year our projected rating increase is an average of 5.8 per cent,” Sayers said. “If we are ahead of the budget by $10 million, and a one per cent rate increase equals about $20 million, can that be passed on as a lower rate increase because we are ahead of target?” Sayers asked.
Financial advisory general manager Nicola Mills said rates were already set for the year so it would not have any immediate relief for Aucklanders.
“What it does mean is that council debt will be a bit lower,” Mills said.
She said a one per cent rate increase was now closer to $25 million.
Council’s group chief financial officer Ross Tucker said it would be possible to see rates reduce in future if council continued to exceed its savings targets, but it might be difficult.
“This financial year we have to find a $28 million increase in savings, but next year that grows to $48 million,” Tucker said.
