7.6% rates rise vs 0.8% inflation

The Herald reports:

Household rates could rise by 7.6 per cent this year if the city adopts a motorway toll of $2 or a regional fuel tax to tackle the city’s transport challenges.

The Auckland Council today releases a draft 10-year budget for public consultation, which includes some difficult choices on the costs and services of the Super City.

Among the options are paying less for transport and getting less, or a scheme involving a motorway toll or a fuel tax to raise $300 million a year to fill a $12 billion transport funding gap over 30 years.

The council is considering a targeted rate this year until revenue from tolls, a fuel tax or higher rates is in place by about 2018.

In the meantime, about $1.7 billion of $3.4 billion of additional transport projects over the next 10 years will be funded by debt.

Council finance officer Matthew Walker said the targeted rate would collect $30 million this year, the equivalent of a 2 per cent rise in rates, to fund the revenue shortfall.

This would raise the overall rates increase from 3.5 per cent to 5.5 per cent.

Household rates would increase on average from 5.6 per cent to 7.6 per cent.

The Council is out of control with its spending. Time for a team to stand for Council who will pledge to keep rates rises down, and resign if they fail to do so.