Rates bills will soon arrive in letter boxes across Auckland Region. A mixture of Watercare bills and Council bills. People will be confused. Finding it hard to compare this year with last year....
I would like to hear from ratepayers who have done a little bit of work comparing this year with last year.
The message from council is that the rates increase is 3.6%. This is an average increase across the region. Everybody understands that. But it does conceal some significant changes because of the way the Council has designed the "single rating system" that has emerged. Council appreciate there will be huge increases and decreases in individual rates. That is why it has asked Government to make changes to the Local Government Act that enable the Council to "smooth" these increases and decreases by limiting the maximum changes that are experienced each year by these affected ratepayers.
Thus annual increases will be "capped" at 10%, and annual decreases will be "capped" at 5.6%. So, even if your rates are to increase by 40%, then you will experience the increase gradually, over three years or so, but the rates will still go up by 40% in the end.
The Council website contains a useful tool allowing ratepayers to get an idea of what their rates bill is likely to be. You can see this here. Different parts of the region will experience changes differently. I checked a typical North Shore house near where I live. The house has a capital value of $1,000,000. It paid rates of $3,130 in the financial year just ended (ARC and NSCC rates). This includes a uniform wastewater charge of $514 which paid for the cost of North Shore's wastewater system network, sewage treatment and ocean disposal.
Under the new Auckland Council rating system, this wastewater service is now provided by Watercare. The remaining services are provided by the Auckland Council. Thus the Auckland Council is to deliver what North Shore City Council used to provide for a rate cost of $3130.00 - $514.00 = $2616.00.
The Auckland Council rates for this North Shore property - according to the website calculator - would be $3,500. An increase of $884, or 34%. (Whereas if the wastewater charges are not subtracted, then it only looks as if the rates increase will be $370, or 12% - an altogether misleading figure.)
Elsewhere in this blog I question the fairness of the new rating system, and the assumptions that underlie its design. But for now I confine myself to a little question: when calculating the increase in rates, shouldn't Auckland Council be subtracting the cost of services that are now to be provided by Watercare? So that like is compared with like?
Monday, July 9, 2012
3.6% Rate Increase? Not!
Rates bills will soon arrive in letter boxes across Auckland Region. A mixture of Watercare bills and Council bills. People will be confused. Finding it hard to compare this year with last year....
I would like to hear from ratepayers who have done a little bit of work comparing this year with last year.
The message from council is that the rates increase is 3.6%. This is an average increase across the region. Everybody understands that. But it does conceal some significant changes because of the way the Council has designed the "single rating system" that has emerged. Council appreciate there will be huge increases and decreases in individual rates. That is why it has asked Government to make changes to the Local Government Act that enable the Council to "smooth" these increases and decreases by limiting the maximum changes that are experienced each year by these affected ratepayers.
Thus annual increases will be "capped" at 10%, and annual decreases will be "capped" at 5.6%. So, even if your rates are to increase by 40%, then you will experience the increase gradually, over three years or so, but the rates will still go up by 40% in the end.
The Council website contains a useful tool allowing ratepayers to get an idea of what their rates bill is likely to be. You can see this here. Different parts of the region will experience changes differently. I checked a typical North Shore house near where I live. The house has a capital value of $1,000,000. It paid rates of $3,130 in the financial year just ended (ARC and NSCC rates). This includes a uniform wastewater charge of $514 which paid for the cost of North Shore's wastewater system network, sewage treatment and ocean disposal.
Under the new Auckland Council rating system, this wastewater service is now provided by Watercare. The remaining services are provided by the Auckland Council. Thus the Auckland Council is to deliver what North Shore City Council used to provide for a rate cost of $3130.00 - $514.00 = $2616.00.
The Auckland Council rates for this North Shore property - according to the website calculator - would be $3,500. An increase of $884, or 34%. (Whereas if the wastewater charges are not subtracted, then it only looks as if the rates increase will be $370, or 12% - an altogether misleading figure.)
Elsewhere in this blog I question the fairness of the new rating system, and the assumptions that underlie its design. But for now I confine myself to a little question: when calculating the increase in rates, shouldn't Auckland Council be subtracting the cost of services that are now to be provided by Watercare? So that like is compared with like?
I would like to hear from ratepayers who have done a little bit of work comparing this year with last year.
The message from council is that the rates increase is 3.6%. This is an average increase across the region. Everybody understands that. But it does conceal some significant changes because of the way the Council has designed the "single rating system" that has emerged. Council appreciate there will be huge increases and decreases in individual rates. That is why it has asked Government to make changes to the Local Government Act that enable the Council to "smooth" these increases and decreases by limiting the maximum changes that are experienced each year by these affected ratepayers.
Thus annual increases will be "capped" at 10%, and annual decreases will be "capped" at 5.6%. So, even if your rates are to increase by 40%, then you will experience the increase gradually, over three years or so, but the rates will still go up by 40% in the end.
The Council website contains a useful tool allowing ratepayers to get an idea of what their rates bill is likely to be. You can see this here. Different parts of the region will experience changes differently. I checked a typical North Shore house near where I live. The house has a capital value of $1,000,000. It paid rates of $3,130 in the financial year just ended (ARC and NSCC rates). This includes a uniform wastewater charge of $514 which paid for the cost of North Shore's wastewater system network, sewage treatment and ocean disposal.
Under the new Auckland Council rating system, this wastewater service is now provided by Watercare. The remaining services are provided by the Auckland Council. Thus the Auckland Council is to deliver what North Shore City Council used to provide for a rate cost of $3130.00 - $514.00 = $2616.00.
The Auckland Council rates for this North Shore property - according to the website calculator - would be $3,500. An increase of $884, or 34%. (Whereas if the wastewater charges are not subtracted, then it only looks as if the rates increase will be $370, or 12% - an altogether misleading figure.)
Elsewhere in this blog I question the fairness of the new rating system, and the assumptions that underlie its design. But for now I confine myself to a little question: when calculating the increase in rates, shouldn't Auckland Council be subtracting the cost of services that are now to be provided by Watercare? So that like is compared with like?
6 comments:
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Stop whinging Joel and go live in a "poorer" area where the rates have gone down - yes down. I've had a 24% rate reduction. After years of subsidising urban Waitakere's efforts to green the concrete jungle, looks like I've been freed of that burden.
Our area has no water supply, sewerage, stormwater/flooding issues and lower rural land values = lower rates. -
July 9, 2012 at 6:04 PM
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Hi Mark, Don't mean to whinge. It seems fair that areas that don't have services shouldn't have to pay for them. You seem to be saying you don't currently have water or sewage services, and that you do have stormwater flooding. Does that mean those services are being built now? My post was about residential zoned land. If you are on rural zoned land rates should be different. Always hard to find that apples for apples comparison.
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July 9, 2012 at 6:39 PM
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When did you last see an accounting for the actual % rates increase compared to the "announced" (budget) one? These % rates pronouncements are invariably PR spin made in the interests of a Council pretending their increases are lower. Goalposts get shifted, (Watercare charges!) and apples are compared to lemons (last years comparatives nowhere to be seen). It is about time Audit gave coverage and proper accountability to these statements. And the media too must ask the right questions when faced with this BS
Larry of Puhoi www.kauriglen.co.nz -
July 10, 2012 at 9:45 AM
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mmmmmm Just got my WaterCare statement which is now monthly...With the pending rates increase the Council should be ashamed that they think everyone is that stupid that they will simply ignore the fact that they have pushed the fixed charge from our rates over to Watercare... The consultants must of came up with the magical idea to charge monthly so we wont "feel" the burden of yet another tax hike, which has nothing to do with water....
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July 13, 2012 at 10:48 PM
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What are we able to do about the council and their never ending desire for our money?
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July 28, 2012 at 12:05 PM
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I live in South Botany (ex. Manukau region.
ACC rates increased 13% (capped at 10%)
Watercare rates increased 44% (uncapped)
Ouch! this hurts. -
August 7, 2012 at 11:18 AM
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6 comments:
Stop whinging Joel and go live in a "poorer" area where the rates have gone down - yes down. I've had a 24% rate reduction. After years of subsidising urban Waitakere's efforts to green the concrete jungle, looks like I've been freed of that burden.
Our area has no water supply, sewerage, stormwater/flooding issues and lower rural land values = lower rates.
Hi Mark, Don't mean to whinge. It seems fair that areas that don't have services shouldn't have to pay for them. You seem to be saying you don't currently have water or sewage services, and that you do have stormwater flooding. Does that mean those services are being built now? My post was about residential zoned land. If you are on rural zoned land rates should be different. Always hard to find that apples for apples comparison.
When did you last see an accounting for the actual % rates increase compared to the "announced" (budget) one? These % rates pronouncements are invariably PR spin made in the interests of a Council pretending their increases are lower. Goalposts get shifted, (Watercare charges!) and apples are compared to lemons (last years comparatives nowhere to be seen). It is about time Audit gave coverage and proper accountability to these statements. And the media too must ask the right questions when faced with this BS
Larry of Puhoi www.kauriglen.co.nz
mmmmmm Just got my WaterCare statement which is now monthly...With the pending rates increase the Council should be ashamed that they think everyone is that stupid that they will simply ignore the fact that they have pushed the fixed charge from our rates over to Watercare... The consultants must of came up with the magical idea to charge monthly so we wont "feel" the burden of yet another tax hike, which has nothing to do with water....
What are we able to do about the council and their never ending desire for our money?
I live in South Botany (ex. Manukau region.
ACC rates increased 13% (capped at 10%)
Watercare rates increased 44% (uncapped)
Ouch! this hurts.
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