Auckland rates hike – Brown explains

Auckland Council’s Annual Plan 2026/2027 has been agreed and approved. However, some dissent remains regarding a 7.9 per cent rates increase.

While the target of returning to average increases of less than 3.5 per cent per year over the medium term remains achievable, council says, the annual budget’s 7.9 per cent rates increase will:

“[Keep] Auckland significantly below double-digit hikes facing communities across the rest of New Zealand,” council contends.

Franklin Ward Councillor Andrew Baker is in favour of the increase.

“I am, because there was no [other] viable option. Going below 7.9 per cent and, in particular, where that decrease was based on an unknown ability to make a total of $166 million would place council in the likely position of having its credit rating cut,” he told the Times.

“It would significantly reduce levels of service, [and] the ability to manage shocks, such as high fuel prices and rates caps. That would lead to a slowdown of our capital programme and more severe reductions in service.

“With no rates cap, we wouldn’t attain the 3.5 per cent increases if we dropped below 7.9 per cent. We must make well-informed but tough decisions.”

While the budget is tough, sudden global shocks made holding the line incredibly challenging, Mayor Wayne Brown says.

“Global fuel pressures [and] existing financial challenges added a massive $213 million risk to our budget. Without our $106 million savings plan, and before added fuel pressure of $25–50 million, that volatility could have forced a 15 per cent rates hike.

“Instead of taking the easy way out and passing that straight onto ratepayers, we are choosing strict discipline and large operating savings,” he says.

The 7.9 per cent increase is a far cry from the double-digit increases crippling the rest of the country who are working ‘business as usual,’ he says. “This year isn’t business-as-usual for Auckland.”

Council’s budget includes $3.6 billion for infrastructure, community services and regional assets. It focuses on transport renewals, the City Rail Link (CRL) online, housing growth compliance, the ‘Making Space for Water’ flood programme, activating the Central Interceptor’s second half, and funding physical spaces and assets.

“You can’t defer a funding gap,” says Brown. “There’s nothing to defer when it comes to major event funding and scrapping the food waste collections would cost in break fees,” says Brown.

“Our $106 million annual savings target is the largest ever and is already larger than the rates revenues of 54 other councils. A $166 million in savings would set our chief executive up to fail.”

Howick Ward Councillor Bo Burns is among those who voted against the increase.

“I’m disappointed the vote did not go the way I, and many in our community, hoped. I believed it was the right thing to do for the people I represent,” she says.

“This was never about politics or personalities. It was about listening to residents, common sense and making sure the community’s voice was heard.

“While we missed out this time, I don’t regret my stand. My job is not to sit quietly when I believe the people deserve better, it’s to speak up, ask hard questions and push for decisions that reflect the concerns of local families, ratepayers and businesses.

“The community has every right to feel disappointed when its views are not reflected. This is not the end – I will continue to advocate strongly, constructively and factually for the people who put their trust in me.”

See times.co.nz to read more.

Bo Burns is the owner of Times Media, publisher of Franklin Times and Eastern Times.