We are facing the single-biggest challenge for the new Auckland Council – merging the former rates systems into one – and I want to make sure that everyone understands the changes.
Rates notices arrived this month, and for the first time your rates are being calculated on a single, region-wide system based on capital value, rather than land value or annual value used by most former Councils.
The move to the capital value basis and a single system are direct and inescapable consequences of the government merging the former councils and the legislation passed to do so.
The difficulty with amalgamating different systems is that some people’s rates will go down and some will go up. It is important you understand why.
I am writing and speaking to as many Aucklanders as I can about this.
We have a lot of information on the Council website and increased numbers of call centre staff available to help you understand the changes, how they affect you and how you can seek assistance. If you have questions, please call us.
For new Aucklanders from non-English-speaking background, our call centres have access to an interpretation service.
Modest increase
The thing to know is that this Council has delivered an average rates rise of just 3.6%, compared to 9% rise that we faced after the amalgamation and an average 5.7% rise per annum over the past seven years of the former Councils.
The Council has taken a number of steps to lessen the impact of amalgamation.
Through prudent financial management, we found $1.7 billion in savings and put a transition proposal to government in order to smoothen the impact of amalgamation on Auckland households and businesses.
International ratings agencies and the Auditor-General have commended Auckland Council’s financial prudence.
Even so, many Aucklanders still face substantial increases or decreases.
These changes are not the result of reckless spending, and they would have happened even if we produced a zero budget.
Prudent spending
Before putting the transition cap in place, more than 133,000 residential ratepayers faced a double-digit increase in the first year as a result of the amalgamation. That was not fair and is no longer the case.
In fact, more than 187,000 households will notice their rates have decreased.
While there is some confusion about how the amalgamation has affected the rating system, we have to contend with other changes as well.
Every ratepayer in New Zealand pays wastewater charges for processing used water, which goes down the drain when you flush the toilet, pull the plug from your kitchen sink or bath, or have a shower.
Waste Water
For many Aucklanders, wastewater charges were included in their rates bill.
From now on, wastewater will be the responsibility of ‘Watercare’ or ‘Veolia Water,’ and you will receive your bill directly from them.
In other words, the wastewater levy has been removed from Auckland Council’s bill and will henceforth appear on the bill from your water supplier.
If you have any questions about these changes, I encourage you to contact the Auckland Council.
We also want to make sure that people who are eligible for rates postponement, rebates and remissions can access them, including the newly introduced remission scheme for residents of license to occupy retirement villages.
If you think that you may be eligible, please phone the call centre or visit the Auckland Council website for details.
I know times are tough, which is why we have tried to be as fair and prudent as possible, find every possible saving, and reduce the impacts of transition.
Len Brown is Mayor of Auckland. The above article is exclusive to Indian Newslink.
Readers may respond to editor@indiannewslink.co.nz
Auckland Council Website: www.aucklandcouncil.govt.nz
