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You’re 7 ticks away from deciding the future of Auckland 10-YEAR BUDGET THE HOUSEHOLD SUMMARY Have your say by 4pm on Monday 16 March 2015
You’re 7 ticks away from deciding the future of Auckland
10-YEAR BUDGETTHE
HOUSEHOLD SUMMARY
Have your say by 4pm on Monday 16 March 2015
The 10-year Budget 2015-2025 summary document2
Last year’s rates brought you a better Auckland Improved public transport – our first all-electric trains went into service and we rolled out the AT HOP card across all train, bus and ferry services.
More housing – in an agreement with the Government, we set up a Special Housing Office to fast track thousands more sections to be developed and thousands more homes to be built.
Guaranteeing future water services – we progressed a $173 million upgrade of the Mangere wastewater treatment plant, to increase capacity and cope with future demand.
More vibrant city streets – we created new shared spaces in the city centre and new cycleways such as in Beach Road.
More libraries – three new library buildings opened their doors at Waiheke Island, Rānui and Te Atatū Peninsula and work started on the new Devonport library.
New and upgraded parks – we improved parks, sports fields and facilities throughout Auckland including Riverton reserve in Manurewa, reserves in the new Long Bay subdivision, and sports parks, cycleways and walkways in Howick and Rodney. We also purchased 86 hectares of land on the west coast between Karekare and Piha and this has been added to the Waitākere Ranges Regional Park.
Great facilities for swimming – Aucklanders aged 16 years and under now have free access to all council pools across the region during standard operating hours. The new recreation precinct in Mason Avenue, Ōtāhuhu is well underway and will create a new aquatic centre next to the existing recreation centre. Massey Park Pool is getting an exciting new look.
Providing a music centre for youth – a music and arts centre for youth in Glen Innes will be ready in early 2015. This will provide a multi-purpose space where young people and the local community can gather to perform, practice and learn the arts, express their creativity and celebrate their cultures.
Transforming South Auckland – Auckland Council and partners are working on the development of Flat Bush. By 2025 it will be home to at least 36,000 people. The development includes five neighbourhood centres and has a strong focus on open space, high urban design standards and environmental sustainability.
Your rates also paid for hundreds of services for over 1.5 million Aucklanders. Everything from rubbish and recycling, park maintenance, local and major events, civil defence, dog control, planting trees, street lights, alcohol licensing, pest management, pollution response, food safety, harbourmaster services, upkeep of sportsfields, repairing walkways, cleaning up graffiti and many more.
The 10-year Budget 2015-2025 summary document 3
Looking ahead at the next ten years
Every day Auckland’s population grows by around 100 people – mainly births but also new arrivals from across the country and the world. We’re a great city and lots of people want to live here. But we have to cope with that growth.
Auckland Council is currently developing its budget for the next 10 years and we need your views on what we invest in and prioritise. As you know from your own household budgets, there is only so much money to go around.
You’ve told us the most important issues for Auckland are improving transport, housing and keeping rates low. We agree.
Take the example of transport. Traffic is bad now – imagine what it will be like sharing our roads with the 716,000 extra people we’re expecting over the next 30 years.
We have a way to fix it but the reality is it will cost a lot of money. So we have a choice to make.
Do we want to be the generation that finally addresses Auckland’s transport?
Whatever the choice we need your views. And not just on transport.
Read this summary to find out more on fixing transport, investing in Auckland, your rates, how we address housing and what is proposed for your local area.
Tell us your views
We welcome your feedback between now and 4pm Monday 16 March 2015.
Find the feedback form on the back page of this document, which you can email to us, send freepost using the address provided, or drop it to us in person.
You can also attend one of our ‘Have your say’ events, or feedback using social media, see page 14.
This document summarises the key issues and proposals for developing Auckland’s next 10-year budget and also Auckland Transport’s Draft Regional Land Transport Plan.
A consultation document that outlines detailed information on the issues and proposals included in the council’s budget is available at shapeauckland.co.nz
The consultation document has been audited by the Auditor-General as required under the Local Government Act 2002. The Auditor-General’s opinion highlights the choices around Auckland’s transport programme and confirms the consultation document provides an effective basis for public consultation.
The feedback you provide will inform the final decisions made in June 2015.
We look forward to reading your views on the future of Auckland.
Message from the mayor
We are about to make some of the biggest decisions on Auckland’s future.
I share Aucklanders’ determination to see major improvements in our communities and across our region, particularly in transport and housing, but at the same time I know there is no appetite for large increases in rates or debt levels.
This is our plan to invest more in Auckland than in any previous decade, while keeping rates fair; to build the city our communities want; to finally tackle decades of underinvestment in major transport infrastructure and finally get this city moving.
We need you to tell us what you think.
Mayor Len Brown
The 10-year Budget 2015-2025 summary document4
To deliver the investments Auckland needs we are proposing $17 billion of capital spending over the next decade. This includes buying and building new assets (such as roads, parks, property, libraries, and stormwater systems) and upgrading or replacing things we already own.
We are also proposing to spend around $4 billion a year over the next 10 years on the hundreds of essential day-to-day services that the council provides. These include things like park maintenance, rubbish and recycling collection, civil defence, dog control, upkeep of sportsfields, cleaning up graffiti, pollution response, pest management and much more.
To help pay for this we will need to increase the total general rates we collect from existing households and businesses by an average of 3.5 per cent each year. Rates currently make up around 40 per cent of the council’s income, along with income from investments, grants, fees and charges. This works out to an average general rates increase next year of 5.6 per cent for residential properties (around $2-3 extra per week), 1.6 per cent for businesses and a decrease of 8.4% for farms and lifestyle properties. See pages 8-9 for an explaination of why these are different.
See the following page for our 10-year budget at a glance
Council looked at other options, including a smaller increase of 2.5 per cent in overall rates for the first two years. This option would save residential ratepayers an average of 43 cents per week or $22.36 a year but would also have meant significantly less investment into local communities, with fewer new or upgraded local and sports parks, libraries and community facilities.
Do you agree with the proposed overall average general rates increase of 3.5 per cent each year, which will enable the proposed investment and spending outlined in this document? See question 1a on the feedback form.
Council debt
As well as collecting rates from property-owners council also borrows money to buy and build new assets for the city. These are big things that have a lifetime of around 40 years or more (like roads, new buildings etc) so the cost is spread among the generations who will use them rather than today’s ratepayers. Over the next ten years our debt will grow from $7.4 billion to $11 billion – well below the previous prediction of $13.7 billion. While that sounds large it is less than two times our annual income and is a bit like having a mortgage - only household mortgage debt is often 4-5 times a household’s income.
1. Investing in Auckland
A look at the council’s financesAre Auckland Council’s finances in good shape?
Auckland Council raises enough money every year through rates and other income to pay for the services we deliver.
International credit rating agency Standard and Poor’s recently affirmed Auckland Council’s financial rating at AA the third-highest credit rating.
What income does Auckland Council have?
The Auckland Council group expects to recieve income of around $3.5 billion in 2015/2016. This is made up of around $1.45 billion from rates, with the balance from user charges, service fees, grants, licenses and returns on investments. This income is used to pay for all of the services we deliver to Aucklanders.
How much is the council borrowing?
Auckland Council only uses debt to pay for new assets that will last for a long time, like buildings, community facilities or trains. This is because it is fairer to spread the cost over the generations who will use the assets, rather than collect the money off one generation of ratepayers.
Over the next ten years our debt will grow from $7.3 billion to $10.8 billion – well below the previous prediction of $13.7 billion. While that sounds large, it is less than two times our annual income. This is a bit like having a mortgage, except that household mortgage debt is often 4.5 times a household’s income.
Transforming AucklandSince Auckland Council was created in November 2010, a huge range of improvement projects have been completed that have begun to change the face of Auckland.
These include:
• reopening the refurbished ASB Theatre
• opening North Wharf and Silo Park at Wynyard Quarter
• creating four new artificial pitches that have increased playing capacity by 234 hours each year
• opening the Merchant Quarter and McCrae Way shared space in New Lynn
• refurbishing the Tepid Baths
• delivering the first electric trains
• upgrading Massey Park stadium and pool
• establishing six new dedicated cycle routes
• improvements to water supply in Pukekohe
The 10-year Budget 2015-2025 summary document6
Area of spending Capital spending 2015-2025
$17.2bn What will be delivered What will change
• Supporting and growing Auckland’s economy through major events such as Cricket World Cup 2015, the NRL Auckland Nines, Pasifika Festival, V8 Supercars, World Master games
• Working with the business sector to grow jobs
• Managing major attractions, venues and sports stadiums
• Similar levels of service and expenditure• Renewing ageing Auckland Zoo infrastructure• Investing in QBE (North Harbour), Western Springs and Mt Smart
stadiums to support the Auckland Stadium Strategy
• Regional and local parks
• Libraries, community facilities, community services and grants
• Arts and cultural facilities, activities and community events
• Swimming pools and recreation centres
• Housing for older adults
• Minor reduction in levels of service – including lower-cost street gardens, spraying instead of mechanical edging, reduced and standardised library hours
• New revenue streams and user fees through standardised fees for cemeteries, more commercial structures in leisure centres and fees for some events in parks
• Introduce a more community-led approach to community development• Standardising rentals for social housing• Prioritising capital projects where they are most needed
• Providing public transport services – trains, buses, ferries
• Building and maintaining all local and main arterial roads
• Footpaths, cycle paths, bridges, carparks, culverts etc
• Invest in more rail, bus stations and ferry terminals
• Transport related education and enforcement
• Key infrastructure projects, including City Rail Link and AMETI
A 3.5 per cent average annual increase in rates will pay for a basic transport package (estimated at $6.9 billion over ten years). It does not provide the investment needed to avoid severe congestion issues in the next decade (see Part 2).
• Significant reductions in levels of service• Fewer public transport improvements• Deferring of some projects and maintenance• Drastically reducing the number of key projects to deliver• These changes are necessary to keep rates increases low. However,
as Aucklanders have told us they want action on transport to avoid serious congestion problems. We have also developed an alternative plan to develop a transport network that will get Auckland moving, along with options for funding. See part 2 for details.
• Unitary Plan and local plans, policy development, waterfront development, town centre development, property management and development
• Some reductions in spending and service levels• Planning and policy activity reduced• Prioritising the completion of the Auckland Unitary Plan• Prioritising capital projects in locations where they are most needed • Replace Waterfront Auckland and Auckland Council Properties Ltd with
a new CCO, Development Auckland, to more effectively work with the private sector on the development of housing and town centres
• Building and maintaining the stormwater network
• Improving the quality of water in streams and harbours
• Waste collection, including recycling and reducing waste to landfill
• Protecting biodiversity
• Undertaking regulatory activities such as resource and building consents, dog control, food licensing and swimming pool inspections
• Minor reductions in expenditure and some education programmes• Funding a greater proportion of costs through user-pays fees• Maintaining stormwater network investment at existing levels for
reasons of safety and environmental protection• Rolling out the Waste Management and Minimisation Plan to
introduce a region-wide organic collection, a “pay as you throw” waste collection, and changes to the inorganic collection service
• Mayor, councillor and local board support and meeting processes
• Corporate functions such as finance, legal and human resources
• Auckland Council Investments Ltd, including Ports of Auckland
• Grants to Auckland War Memorial Museum, MoTAT and the Auckland Regional Facilities and Amenities
• Reducing corporate costs through an ongoing efficiency programme – further reductions of $21 million in year one and $30 million from year two onwards
• Improved returns from Ports of Auckland and Auckland International Airport
• Building and maintaining the network of pipes, dams, treatment plants, and pumps required to provide a high standard of drinking water and treating sewerage
• Major projects over the next 10 years are the central interceptor and the consent application for further water take from the Waikato River to cater for Auckland’s future growth
• No changes in levels of service• Focusing on major, high-priority projects that will cater for projected
growth, including the central interceptor (to reduce sewage overflows into waterways in central Auckland and the Waitemata harbour) and the consent application for further water take from the Waikato River to cater for Auckland’s future growth.
• Water and wastewater spend is funded almost entirely by user chargers – changes have been made to enable water and wastewater charge increases to be reduced to 2.5 per cent in the first two years and 3.6 per cent each year thereafter.
$6.9bn $13bn
$0.4bn $2.2bn
Auckland’s draft 10-year budget at a glance
$1bn $2.2bn
$1bn $4.3bn
$1.1bn $6.1bn
$2.1bn $5.3bn
$4.7bn $6.6bn
Economic and Cultural Development
Parks, community and lifestyle
Environmental management and regulation
Governance and support
Waste supply and wastewater
Transport
Auckland development
Operating spending 2015-2025$39.7bn
The 10-year Budget 2015-2025 summary document 7
Area of spending Capital spending 2015-2025
$17.2bn What will be delivered What will change
• Supporting and growing Auckland’s economy through major events such as Cricket World Cup 2015, the NRL Auckland Nines, Pasifika Festival, V8 Supercars, World Master games
• Working with the business sector to grow jobs
• Managing major attractions, venues and sports stadiums
• Similar levels of service and expenditure• Renewing ageing Auckland Zoo infrastructure• Investing in QBE (North Harbour), Western Springs and Mt Smart
stadiums to support the Auckland Stadium Strategy
• Regional and local parks
• Libraries, community facilities, community services and grants
• Arts and cultural facilities, activities and community events
• Swimming pools and recreation centres
• Housing for older adults
• Minor reduction in levels of service – including lower-cost street gardens, spraying instead of mechanical edging, reduced and standardised library hours
• New revenue streams and user fees through standardised fees for cemeteries, more commercial structures in leisure centres and fees for some events in parks
• Introduce a more community-led approach to community development• Standardising rentals for social housing• Prioritising capital projects where they are most needed
• Providing public transport services – trains, buses, ferries
• Building and maintaining all local and main arterial roads
• Footpaths, cycle paths, bridges, carparks, culverts etc
• Invest in more rail, bus stations and ferry terminals
• Transport related education and enforcement
• Key infrastructure projects, including City Rail Link and AMETI
A 3.5 per cent average annual increase in rates will pay for a basic transport package (estimated at $6.9 billion over ten years). It does not provide the investment needed to avoid severe congestion issues in the next decade (see Part 2).
• Significant reductions in levels of service• Fewer public transport improvements• Deferring of some projects and maintenance• Drastically reducing the number of key projects to deliver• These changes are necessary to keep rates increases low. However,
as Aucklanders have told us they want action on transport to avoid serious congestion problems. We have also developed an alternative plan to develop a transport network that will get Auckland moving, along with options for funding. See part 2 for details.
• Unitary Plan and local plans, policy development, waterfront development, town centre development, property management and development
• Some reductions in spending and service levels• Planning and policy activity reduced• Prioritising the completion of the Auckland Unitary Plan• Prioritising capital projects in locations where they are most needed • Replace Waterfront Auckland and Auckland Council Properties Ltd with
a new CCO, Development Auckland, to more effectively work with the private sector on the development of housing and town centres
• Building and maintaining the stormwater network
• Improving the quality of water in streams and harbours
• Waste collection, including recycling and reducing waste to landfill
• Protecting biodiversity
• Undertaking regulatory activities such as resource and building consents, dog control, food licensing and swimming pool inspections
• Minor reductions in expenditure and some education programmes• Funding a greater proportion of costs through user-pays fees• Maintaining stormwater network investment at existing levels for
reasons of safety and environmental protection• Rolling out the Waste Management and Minimisation Plan to
introduce a region-wide organic collection, a “pay as you throw” waste collection, and changes to the inorganic collection service
• Mayor, councillor and local board support and meeting processes
• Corporate functions such as finance, legal and human resources
• Auckland Council Investments Ltd, including Ports of Auckland
• Grants to Auckland War Memorial Museum, MoTAT and the Auckland Regional Facilities and Amenities
• Reducing corporate costs through an ongoing efficiency programme – further reductions of $21 million in year one and $30 million from year two onwards
• Improved returns from Ports of Auckland and Auckland International Airport
• Building and maintaining the network of pipes, dams, treatment plants, and pumps required to provide a high standard of drinking water and treating sewerage
• Major projects over the next 10 years are the central interceptor and the consent application for further water take from the Waikato River to cater for Auckland’s future growth
• No changes in levels of service• Focusing on major, high-priority projects that will cater for projected
growth, including the central interceptor (to reduce sewage overflows into waterways in central Auckland and the Waitemata harbour) and the consent application for further water take from the Waikato River to cater for Auckland’s future growth.
• Water and wastewater spend is funded almost entirely by user chargers – changes have been made to enable water and wastewater charge increases to be reduced to 2.5 per cent in the first two years and 3.6 per cent each year thereafter.
2. Fixing transport
Transport is the single biggest issue for Auckland. Major investment will be needed in the next decade to avoid worsening congestion and the impact this will have on our economy, environment and way of life.
To keep rates and debt levels low, we have included a $6.9 billion transport package in the draft budget, which is 33 per cent less than what was previously planned. While $6.9 billion sounds like a lot of money, it will only allow for a basic transport network that covers some priority projects. It is well short of what is needed to undo decades of underinvestment in Auckland’s essential transport infrastructure.
We have a choice to make. Do we accept a basic transport network which costs less, or do we invest more to get the advanced transport programme set out in the 30-year vision for our region known as the Auckland Plan. The Auckland Plan transport network includes the new roads, rail, ferries, busways and cycleways our city desperately needs.
To build the advanced network that thousands of Aucklanders have told us they want means we need an additional $12 billion over the next 30 years. The main benefits will be faster and more frequent public transport, faster travel times, better transport choices, improved safety and will better support Auckland’s population growth. It will also deliver economic benefits of up to $1.6 billion in improved productivity and reduced costs for Auckland.
See page 10 for an overview of both programmes.
Do you support the basic transport network or do you think we should invest more to get the Auckland Plan transport network that would address our transport problems? See question 2a on the feedback form.
The 10-year Budget 2015-2025 summary document 9
Paying to fix Auckland’s transportIf we choose to fix Auckland’s transport issues and get our city moving we need your feedback on how we should pay for it. To help you decide, a group of independent experts have worked out two options for how Auckland could fund the advanced Auckland Plan network.
1. Increases in fuel taxes of 1.2 cents per litre each year and a new targeted rate that would increase overall average annual rates by around one percent each year (in addition to the proposed 3.5 per cent overall average increase in general rates)
2. A motorway user charge of around $2 each time people enter Auckland’s motorway system depending on the day and time (free at night)
Central government would have to support an annual petrol tax increase or motorway charge, with either option requiring changes to legislation.
Under either funding option a targeted rate may also be required for 2015/2016.
We encourage everyone to read the full report on the funding options at shapeauckland.co.nz
If we decide to invest in the Auckland Plan transport network, how do you think Aucklanders should pay for it? See question 2b on the feedback form.
Your feedback will also inform Auckland Transport’s Regional Land Transport Plan Every three years Auckland Transport needs to prepare and consult on a Regional Land Transport Plan (RLTP), which will form the basis for agreeing New Zealand Transport Agency (NZTA) funding. By providing feedback on the transport issues set out in this document you will inform both the council’s Long-term Plan 2015-2025 and Auckland Transport’s RLTP as the key issues are the same for both plans.
Are there any specific projects or priorities e.g. cycleways, improved public transport services or more bus lanes, we should focus on delivering as part of the basic transport network or the Auckland Plan transport network? See question 2c on the feedback form.
Case study: the City Rail Link The City Rail Link (CRL) will revolutionise travel for Aucklanders which is why it’s the council’s top transport priority. It will help address congestion on our roads across the region, cut rail travel times and increase rail services.
For example, you will see:
• A train about every 7 to 10 minutes at peak for most Auckland stations
• Faster more frequent public transport services with increased rail feeder buses freeing up city centre arterial bus services
• Getting to other parts of the city using public transport from areas such as New Lynn will be a lot quicker e.g. New Lynn to Aotea Square will be under 30 minutes.
Auckland Council plans to start the project in 2016, with $280 million of enabling work as well as $120 million on continued land acquisitions. The main construction work will commence in 2018, assuming the government agrees to contribute funding. The CRL is programmed to be completed in 2023.
The 10-year Budget 2015-2025 summary document10
Auckland Plan Transport Network(2015-2025) $10.3 Billion
Basic Transport Network (2015-2025) $6.9 Billion
Includes significant investment on top of the basic transport network with many of the projects under the basic network being delivered earlier.
2015/16 to 2024/25• Complete the roll-out of the new public transport network by
2018/2019• Earlier delivery of more key road improvements than in the basic
programme, including Te Atatu, Flat Bush and Albany• Silverdale transport improvements including a park and ride • Faster completion of East West Connections and AMETI busway
from Panmure to Pakuranga• At least 15 new park and rides• Ferry terminal upgrades: Devonport, Bayswater, Half Moon Bay• Five rail station upgrades and a new station at Paerata• Bus lanes, bus priority improvements and interchanges to reduce delays
and bus congestion• Full integrated fare-system – simpler fares to encourage patronage
growth, with many interchange points• Grade separation at high priority rail level crossings• Road improvement projects creating additional capacity to cope with
expected growth and existing congestion• Completion of 55% of the Auckland cycle network by 2025• More school, workplace and community travel plans • Expanding the regional safety and safety around schools programmes• Maintaining asset renewals at higher levels to ensure a greater proportion
of transport assets remain in better condition.
2025/26 – 2044/45• Investment in strategic projects such as the additional harbour crossing,
Penlink, North-Western busway and rail to the airport.
Investment is limited, particularly in the first five years.
2015/16 – 2019/20• Low cost version of integrated fare structure• Very limited spending on roading and public
transport• Waterview walking and cycling connection,
but no other new cycling projects• City Rail Link enabling works• Completion of current projects such as Albany
Highway.
2020/21 – 2024/25• City Rail Link• East West Connections• Public transport improvements such as
Fanshawe St, Otahuhu and Manukau bus interchanges
• No new park and rides or grade separation, and reduced investment in renewals and safety programmes.
2025/26 – 2044/45• Continued lower levels of asset renewals,
cycling and safety programmes• Unclear whether or not strategic investments
such as Penlink and rail to the airport could be delivered.
There are two options to fund the additional investment needed
Option 1 Option 2
Motorway user charge of around $2 per trip which would be free at night and may vary by time of day.
Key points to consider
• More costly and complex to implement and operate
• Most people can change behaviour to avoid or minimise charges
• Government support and new legislation required.
Additional annual 1% rates increase and 1.2 cents per litre fuel tax (each year for 9 years from 2016/17).
Key points to consider
• Simpler and cheaper to implement and operate
• Provides little incentive for transport users to change their behaviour to avoid charges
• Requires government support and legislative amendment required for fuel tax.
Funded from the proposed 3.5% average rates increase and existing central government sources.
$21.2
cents
3.5%+1%rates
3.5%rates
Options for Auckland’s transport future
The 10-year Budget 2015-2025 summary document 11
Auckland’s point of difference in the world is its Māori identity. Our 10-year budget provides funding for priority projects for Māori; including a signature Māori event, supporting marae and papakāinga housing development. There is also a range of other activities that will enable us to continue to meet our commitments to Māori. See shapeauckland.co.nz for more information.
The 10-year Budget 2015-2025 summary document12
Calculating the share of rates paid by each household and business property is a complex process.
The share of rates you pay is largely based on your property value (CV), which councils are required by law to use when working out rates. The higher your property value relative to others, the more rates you will pay. Recent revaluations have had an impact on how rates will be shared across ratepayers because not all properties have experienced the same change in value.
Residential properties in Auckland increased in value by an average of approximately 34 per cent. This does not mean the council collects more income in rates; it only affects how much each property pays. If your property value has increased more than this average, then it is likely that your rates will increase by more than the average rates increase. If your property value increase was below the average, then your rates increase will likely be below the average, or a decrease.
The two other elements that determine the rates each property owner will pay are:
• a fixed charge for every ratepayer called the Uniform Annual General Charge (UAGC), and
• how much business properties contribute in rates compared with residents.
3. Your rates
Overview of revaluation 2014
29.2%Average
15.8%
Business
34.2%
Residential
16.8%
Farm/lifestyle
Average value increaseProperty type
The 10-year Budget 2015-2025 summary document 13
Setting the fixed charge for each property
• Setting a fixed portion of rates, known as the Uniform Annual General Charge (UAGC), ensures that every ratepayer pays the same minimum contribution for council services. After reviewing a range of options, the council is proposing to keep this at its current level, $385 per year for each ratepayer in 2015/2016.
• If the fixed portion was higher it would mean that the owners of a more expensive home would pay less rates while a lower value home would pay more. Some Aucklanders have told us this is fairer because all households have the same access to many council services, regardless of the value of their property. On the other hand, a lower fixed portion would mean the owners of a lower value home would pay lower rates, while the owners of a more expensive home would pay more. Other people argue this is fairer because the owners of lower value proprieties tend to have less ability to pay.
What this means for your rates
UAGC option
$250 $1607 $2285 $2964 $4320
$385 (proposed)
$1644 $2274 $2904 $4163
$500 $1676 $2265 $2853 $4029
$500K value
$750K value
$1M value
$1.5M value
The below table demonstrates what your rates would be based on the following Uniform Annual General Charge (UAGC) levels.
By legislation the council can set the fixed portion of rates (UAGC) at up to 30% of total rates collected, which is around $900.
To see how the different UAGC levels affect your rates in 2015/2016, visit our rates guide at shapeauckland.co.nz
What do you think the fixed portion of rates (UAGC) that everyone pays should be? See question 4 on the feedback form.
How much should businesses contribute?
When Auckland Council was formed, businesses were contributing 34 per cent of the overall rates even though their properties only make up 17 per cent of Auckland’s total property value. The council considered this to be too high, so we adopted a policy to slowly reduce the share paid by business from 34 per cent to 25.8 per cent by 2022/2023. Lowering the amount business pays means that non-business properties will pay more over time.
As a result of the 2014 revaluation which saw business properties increase by much less than residential homes we are adjusting this policy. The adjustment will see business rates reduce more slowly than we previously planned, reaching 25.8 per cent of all rates by 2025/2026. This will ensure that residential ratepayers avoid an unintended additional 5 per cent average rates increase.
Do you support gradually reducing business property rates from 32.8 per cent of all rates to 25.8 per cent over the next 10 years? See question 5 on the feedback form.
Same rates for same value properties
Auckland Council has proposed to have no further capping on rates increases or decreases so that all ratepayers who own similar value properties would pay the same rates no matter where in Auckland they live.
For the past three years, the council has capped rates increases at 10 per cent for Auckland households. This was funded by limiting decreases. The legislation that enables this has now expired.
The cap was put in place to limit what would have been large increases for some people as the council transitioned from eight inherited rating policies to one. However this meant some ratepayers were paying more rates than others with the same value property. No further capping is proposed because while there are still a few large changes, for 85 per cent of households the increases and decreases in rates are within $7 per week and changes are largely driven by property revaluation.
Rates for different property types
While the overall proposed average general rates increase is 3.5%, the average for different types of property is quite different. The table below shows the average change for the three main types of properties. A number of factors influence this, including the impact of revaluations and also council policy on how the rates are shared across different types of properties.
Average general rates
impactBusiness Residential
Farm/ lifestyle
Total
2015/ 2016
1.6% 5.6% -8.4% 3.5%
2016/ 2017
1.3% 4.5% 4.5% 3.5%
2017/ 2018
1.3% 4.5% 4.5% 3.5%
The council is also proposing some additional changes to rates, (including the rates for refuse collection and possibly a new targeted transport rate), other financial policies and some of our fees and charges. See the consultation document at shapeauckland.co.nz to find out more.
The 10-year Budget 2015-2025 summary document14
Have your say
Housing and quality development is another big issue for Auckland. While council is not in the business of building houses, we are taking an active role to improve the supply of quality housing as part of our commitment to improve living standards for all Aucklanders.
Council currently has a planning role to enable development and provide the essential infrastructure such as water, roads and other services. To help make sure future development happens in the best suited locations such as existing town centres where residents can live close to jobs and services, council is proposing to replace two existing Council Controlled Organisations (CCOs) with a new CCO known as Development Auckland.
Development Auckland would facilitate the development of intensive housing, including apartments and terrace houses, along with commercial development in places with the best
potential. It would redevelop areas in partnership with the private sector, developers, iwi and the government and would not require increases to rates or debt levels.
Development Auckland would include a waterfront business unit (to continue the work of Waterfront Auckland) as well as the services currently provided by Auckland Council Properties Limited.
Do you support the council taking a more active role in the development of Auckland through replacing two existing Council Controlled Organisations (CCOs) with a new development agency? See question 3 on the feedback form.
Every three years each of the Auckland Council’s 21 local boards engage with their communities and stakeholders to produce a plan for their local board area. The plans are strategic documents which outline the community’s priorities and preferences and they are used to guide the decisions local boards make and also the development of an annual local board agreement.
The local board agreements form part of the final Long-term Plan and set out the local activities, services and investments planned for the local board area over the coming year.
To find out more about what is planned for your area see your local board insert delivered with this document or go to shapeauckland.co.nz
We want to hear your views on the issues facing Auckland so we encourage you to take the time and get involved. The public consultation runs from 23 January to 16 March.
There are a number of ways you can give feedback depending on what suits you. These include:
Written feedback: you can provide written feedback online at shapeauckland.co.nz or fill out the attached form and send to the freepost address provided or scan and email it to [email protected]
In person: come and talk to us at one of our ‘Have your say’ events. This is an opportunity for you to give feedback in person and be heard by the council’s decision makers. There will be over 30 events held across the region between 14 February and 14 March. These events replace traditional hearings. For details, and to register for an event go to shapeauckland.co.nz or call 09 301 0101.
Social media: comments made through the following channels will be considered written feedback:- on Twitter using both @aklcouncil and #LTP2015- by posting on our Facebook page -
facebook.com/aklcouncil - using #LTP2015- by commenting on any blog at
shapeauckland.co.nz/longtermplan
Everything you need can be found at shapeauckland.co.nz including the consultation document, supporting information, the draft Regional Land Transport Plan, an online feedback form and a schedule for the ‘Have your say’ events.
Your feedback on the transport issues will inform both the council’s Long-term Plan and Auckland Transport’s Regional Land Transport Plan.
4. Housing and development
Local board priorities
Do you support the proposals for your local board area? See question 6b on the feedback form.
Your name and feedback will be public documents. All other personal details will remain private.
First name:
Last name:
Email address or postal address:
Your local board:
The following information is optional.
Are you?
Female Male
What age group do you belong to?
Under 15 15-24 25-34
35-44 45-54 55-64
65-74 75+
Which of the following best describes your ethnicity?
European Pacific
Asian Māori
African/Middle Eastern/Latin American
Other (please specify)
Yes I want to receive the ‘Stakeholder Update’ email from Auckland Council
Please visit shapeauckland.co.nz and read the consultation document before providing your feedback. We encourage you to provide feedback online, alternatively you can complete this form and return to us as outlined below.
Feedback must be received by 4pm Monday 16 March 2015.
Email Simply scan your completed form and email to [email protected]
In person Drop off at your local library, service centre or local board office
By post Place your completed form in an envelope and send to freepost address. Long-term Plan 2015-2025 Auckland Council Freepost Authority 182382 Private Bag 92 300, Auckland 1142
Have your say on the future of Auckland
Question 1a: Do you agree with the proposed overall average general rates increase of 3.5 per cent each year, which will enable the proposed investment and spending outlined in this document?
Agree Disagree Other
Question 1b: If you do not agree, in which activity areas do you think we should spend more or spend less, and what level of general rates increase would you support?
Please comment:
Question 2a: Do you support the basic transport network or do you think we should invest more to get the Auckland Plan transport network that would address our transport problems?
Basic transport network
Auckland Plan transport network
Other
Please comment:
Question 2b: If we decide to invest in the Auckland Plan transport network, how do you think Aucklanders should pay for it?
Annual fuel tax increase of 1.2 cents per litre and an overall average annual rates increase of around one per cent each year (in addition to the proposed 3.5 per cent overall average general rates increase).
A motorway user charge of around $2 each time people enter Auckland’s motorway system, which would be free at night and may vary by time of day.
Both of these options will require legislation to implement.
Please comment:
Question 2c: Are there any specific projects or priorities e.g. cycleways, improved public transport services or more bus lanes, we should focus on delivering as part of the basic transport network or the Auckland Plan transport network?
Please comment:
The feedback you provide on the transport questions will inform both the Auckland Council’s Long-term Plan 2015-2025 and Auckland Transport’s Regional Land Transport Plan.
All personal information that you provide in this submission will be held and protected by Auckland Council in accordance with our privacy policy (available at aucklandcouncil.govt.nz/privacy and at our libraries and service centres) and with the Privacy Act 1993. Our privacy policy explains how we may use and share your personal information in relation to any interaction you have with the council, and how you can access and correct that information. We recommend you familiarise yourself with this policy.
Question 3: Do you support the council taking a more active role in the development of Auckland through replacing two existing Council Controlled Organisations (CCOs) with a new development agency?
Support Do not support Other
Please comment:
Question 4: What do you think the fixed portion of rates (UAGC) that everyone pays should be?
Keep it at $385 $250 $500 Other $
To see how different UAGC levels affect your rates in 2015/2016, visit our rates guide at shapeauckland.co.nz
Please comment:
Question 5: Do you support gradually reducing business property rates from 32.8 per cent of all rates to 25.8 per cent over the next 10 years?
Support Do not support Other
Please comment:
Question 6a: Which local board does your feedback relate to?
Question 6b: Do you support the proposals for your local board area?
Support Do not support Other
Please comment:
Any other feedback? Please provide any additional feedback below. If you are providing specific feedback to one of the questions listed, please include the question number.
Need more room? You can attach extra pages, but please make sure they are A4, and also include your name and contact information.
