Guest Post: Sayers Challenges Mayors Targeted Rate
A guest release by Greg Sayers:
Mayor Goff is proposing a 5.9% overall average rates increase for next year. The increase will be comprised of a 3.5% average general rates increase along with the introduction of a new targeted climate action targeted rate for mitigating the effects of climate changing emissions adding an additional 2.4% average rates increase onto Aucklanders rates bill.
Public feedback on both rate increases are part of a Mayoral Proposal which was ratified by the Finance and Performance Committee on 8 November and which will go out for public feedback between 28 February and 28 March 2023.
Councillor Sayers challenged the proposal contending that initiatives to reduce carbon emissions were important but should be part of Council’s business as usual processes, and therefore funded from the general rates.
Sayers said this is not the time to be reaching forever deeper into ratepayer’s pockets. Due to the impact of the Auckland lockdown on the economy, and household budgets, he said it was exactly the wrong timing, in fact the worst timing for a Council to be increasing taxes.
“The new climate action tax will mean next year’s overall rate hike will be $5.9%, even higher than last year’s promised ‘one-off’ 5% increase. This proposed 5.9% tax hike is a broken promise from the Mayor,” he said.
“Aucklanders also pay an additional Regional Fuel tax to help deliver these types of projects, so Council needs to stop double dipping.”
Sayers argued that the proposed climate action target rate would be paying for business-as-usual projects such as buses, cycleways, new electric ferries and tree planting.
“This is all business as usual stuff. They are projects which should be being funded from within the existing budgets and the general rates take,” he said.
Sayers attacked the Mayoral Proposal further claiming the targeted rate was unnecessary and was a way of increasing Council’s revenue without the Mayor having to admit he was breaking his promise of keeping next year’s rate increase to 3.5 per cent.
“Let’s call this new tax what it really is. It’s a disguised rates hike. It is a disguised rates hike disguised to fill Auckland Council’s financial hole left over from Covid,” said Sayers.
“It is time for the Council to tighten its belt and cut operational spending and reprioritize its spending priorities, within existing budgets.”
Sayers explained funding new initiatives to mitigate the effects of climate change from the general rates would mean avoidance of the proposed 2.4% targeted rate increase, but would require the reprioritization of the Council’s 10 years capital spending priorities along with cutting operational costs across Auckland Council.
He said the rural communities of Rodney would be forced to pay more rates without receiving any of the benefits as the spending from the collected targeted rates were not rural focused.
Cr Sayers wanted a question added to the Mayoral Proposal to seek public opinion if the projects tagged to the climate action targeted rate should be general rates funded or targeted rate funded. He was defeated 5 votes to 18.
The Climate Action Targeted Rate would deliver:
- 170,000 more Aucklanders living within 500m of a frequent bus route
- $122 million to accelerate decarbonisation of the ferry fleet, which accounts for 21 per cent of Auckland’s emissions from public transport
- $228 million for walking and cycling
- $13.3 million for urban ngahere, māra kai (food gardens) and tiny forests
- new frequent bus services in Manukau, Manurewa-Papakura, Maungakiekie-Tāmaki, Waitākere, Whau, Albert-Eden-Puketāpapa, Rodney, Albany, Ōrākei, and Franklin wards and service level improvements throughout Auckland
- An additional 66 low-emissions buses for Tāmaki Makaurau
- An additional 18km of safe cycle facilities
- Up to 35km of walking connectivity improvements
- 14,800 native mature trees with a focus on areas with the most heat vulnerability and lowest canopy cover (mainly in south Auckland).
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Link to the Agenda and Minutes: https://infocouncil.aucklandcouncil.govt.nz/ See Item 10, Finance and Performable Committee, 8 November
Video link to Cr Sayers’ debate: https://councillive.aucklandcouncil.govt.nz/video/081221-item-10-annual-budget-20222023-mayoral-proposal-items-consultation-part-2
Amendment wording was as follows:
- E) that there be an option provided in the consultation document for the Climate Action programme to be funded through the general rate, and other funding tools, with the reprioritisation of capital and operational budgets over the next decade.