Auckland's 2.9 per cent rates increase could go lower

Rates in Auckland will go up by an average of 2.9 per cent if the Mayoral proposal for the 2013/14 Annual Plan is adopted.

However Len Brown has made it clear he sees the 2.9 per cent figure as a starting point rather than the end of the debate.

The Mayor presented his proposal to the Governing Body this morning.

"I have consistently indicated that I saw the rate increases in the Long Term Plan as a starting point and that each year I would expect us to review costs and reduce the rates requirement.

Investment in local communities remains a key priority for Auckland Council, as is continuing its transition policy to mitigate the impact of the government-imposed move to a single rating system based on capital value..

“I am particularly pleased that the proposed rates increase does not impact on local board budgets or compromise local communities’ aspirations,” says Len Brown.

As well as keeping the proposed average rates increases to no more than 2.9 per cent, the Annual Plan will see the continuation of the largest ever investment in our local communities including new libraries, roading upgrades and water infrastructure.

The proposed 2.9 per cent average rates increase for the 2013/14 financial year is significantly lower than the 4.8 per cent proposed in the council's 10-year Long Term Plan (LTP) and the 5.3 per cent increase that would have been required if the Mayor had not asked for savings and efficiencies across the council.

The council and its council-controlled organisations (CCOs) identified more than $20million in savings and efficiencies across the region.

It is also lower than the first two average rates increases set by Auckland Council - 3.6 per cent this year and 3.9 per cent last year.