Individual Auckland rates rises revealed

Auckland ratepayers can now check what their new rates bill is via the council’s website.

Approximately 80% will face an increase of less than $500 and 51,000 will enjoy a decrease.

An estimated 9000 properties – or 2%, according to the council – will have to contend with a rates rise of $1000 or more.

Yesterday Auckland Council copped flak for spending at least $60,000 – and up to $90,000 – on contacting the ratepayers who will be hardest hit by rises, about 12,000 by phone and 77,000 by letter.

The council was unapologetic about the expense.

In a statement general manager for financial plan, policy and budget Matthew Walker said, “We take our responsibility to communicate with Auckland ratepayers seriously and make no apology for calling those most affected by the changes to this year's rates.

“In this case, the calls were an opportunity to explain a complex set of changes to those affected the most, and to make sure they knew what help and support was available where they may have difficulty paying.”

This morning mayor Len Brown blamed an increasingly antiquated rating system for the sharp rises experienced by some.

"One of the real flaws in our rating system is that ... there is nothing that we can do about those who have extraordinarily high revaluations; that over the three-year period, their increase in house value, in fact their asset value, may have increased by 50%, 60%, 70%, even 80% or 90%," he told Radio New Zealand.

As reported by NBR two weeks ago, later this month Local Government NZ will release its Local Government Funding Review, which seeks to identify funding alternatives to property value rates that disproportionately charge home and landowners on behalf of the whole community.

Individual councils are also independently investigating other options.

Central government doesn’t appear to have any appetite for changing the ratings system, however, with Prime Minister John Key having noted that “wholesale restructuring and reform of the way local government is funded is not something we have on the agenda at this time.”