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War of words at Auckland Council

Author
Michael Sergel,
Publish Date
Tue, 2 Jun 2015, 5:54pm
Len Brown (NZ Herald)
Len Brown (NZ Herald)

War of words at Auckland Council

Author
Michael Sergel,
Publish Date
Tue, 2 Jun 2015, 5:54pm

A war of words has erupted between the current mayor of Auckland and a former mayor of Auckland City.

Len Brown has told Chris Fletcher he's had enough of her accusations of councillors not being kept in the loop about financial decisions.

That's after she proposed a plan to retain parks spending and keep rate rises at 2.5 percent, by selling off under-performing non-core assets.

Chris Fletcher says she wasn't allowed to have her proposal assessed, and she's worried the mayor's proposals are treating ratepayers like an ATM machine.

She says if all the councillors are supposed to be shaping the decision, they should be able to get their options assessed.

Len Brown has defended the decision-making process of his 3.5 percent rate rise, which a majority of councillors have backed.

Councillors give their approval

After a two-day marathon meeting, other points in Len Brown's ten-year plan for Auckland have also received the councillors' stamp of approval.

They've voted against increasing the fixed Uniform General Annual Charge every homeowner pays, and reducing capital valuation rates. It's set to remain at 13.4 percent of current rates, and increase to 385 dollars next year in line with the 3.5 percent rates increase.

Len Brown says he opposed an increase the annual charge, because high revaluations have also impacted on middle and low income households.

They've also voted in support of a higher rate burden for homeowners, so businesses won't have to pay as much in rates.The rates burden for businesses will drop from 33.3 percent in the current year, to 32.8 percent next year. It will drop to 25.8 percent by 2025, meaning another rates hike for residential homeowners.

Most councillors also backed moving from a ratio approach to a proportional approach for rates differentials, to prevent businesses receiving the unintended windfall over lower valuations for businesses.

Other proposals also pass

Councillors agreed to keeping the city centre targeted rate to fund capital projects in the central city, but using general rates to cover the operating costs and depreciation costs of those capital projects.

Rent on council-owned social housing is set to be increased to 30 percent of a tenant's gross income, with rents unable to change by more than 780 dollars a year.

The councillors supported standardising fees and charges for services like street trading and cemeteries on the North Island mainland, with higher costs remaining in place in the Hauraki Gulf. There was also support for funding a Maori signature event, Marae development and Papakainga development.

Plan heading out to public consultation

The proposed changes wouldn't increase the overall rates bill, but would change the distribution of rates so urban households take on a larger share.

Councillors will adopt the long-term plan on December 18, and the plan will go out to public consultation from late January until mid-March.

Amendments could then be made to the plan, before it's finally adopted in June 2015 and takes effect for the following ten years.

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