- By Laura Kvigstad, Auckland Council reporter funded by New Zealand on Air
Auckland Council has signalled potential rates increases beyond the planned 5.8 per cent, citing a $10 million budget gap and mounting financial pressures.
At the council’s Governing Body meeting on November 28, the chief financial officer suggested rates rises could exceed the long-term plan’s (LTP) proposed 5.8 per cent rates increase for the next financial year starting on July 1, 2025.
Chief financial officer Ross Tucker said preliminary work for the council’s annual plan had identified a $10m budget hole and it was still unclear how some financial pressures would impact the annual plan.
“We have got some challenges to work through. We might need to adjust some services, some [capital expenditure] and the last cab off the ranks as always is do we need to adjust rates,” Tucker said.
At a previous council meeting, the council’s recovery office signalled buyouts for storm affected properties had been underestimated.
“It’s going to mean more property buyouts, we have already seen that,” said Tucker.
“That means potentially moving money from some of the longer-term infrastructure [projects] into buying properties now, which means more money going out earlier which means higher interest costs.
“There will be impacts on the annual budget.”
Tucker cautioned suggestions for small rates increases for things like events funding or transport projects.
“If you add up a bunch of small increases, it could add up to a number where we are suddenly heading towards a double-digit rate increase.”
Councillor Julie Fairey said she wanted to understand the costs tied to the buyouts.
“We are likely to have increased maintenance of these sites purely because there are more of them and also because it will take more time to clear more sites,” she said.
Council chief executive Phil Wilson said: “We’re on a February timeline to report back on how we’re going to treat the residual land post the buyouts.
“[Answers] might come in two parts.”
