You Can Tell our Rates Bills are Coming
That would be especially the case with two more articles on Rates in this morning NZ Herald.
Lets take a quick look at both shall we:
Both articles from the NZ Herald
5:30 AM Tuesday Jul 31, 2012
About 8000 Auckland small businesses and 1700 large businesses face rates increases of more than 10 per cent for three consecutive years. Unlike households, businesses do not have the luxury of a rates cap and have to change to the new single rating system for the Super City in equal steps over three years. Seven out of 10 small businesses and six out of 10 big businesses face a rise in rates. About 11,000 businesses across the region will get a reduction in rates.
Auckland Mayor Len Brown said that while the value of rates being paid by business was being shuffled around, the 34 per cent of total rates collected from businesses was the same as under the former councils.
For every dollar in rates paid by households, urban businesses are charged $2.63 and rural businesses $2.37. In the case of Pukekohe businesses, the council has set the differential at $2.03. This is because the former Franklin District Council did not charge a business differential and a $2.63 differential would have had a “significant and extreme” impact on those businesses, Mr Brown said.
* Most businesses pay $2.63 for every $1 paid by households.
* Pukekohe businesses will pay $2.03.
* The $2.63 differential will be cut by 10c every year to $1.63 after 10 years.
So businesses get slugged rather heavily. Not particularly helpful when trying to encourage businesses into Auckland and either create or expand employment centres like Papakura, and Manukau City Centre which sorely need our existing and new businesses.
I must have a look over the conversations I have had with people since the Long Term Plan (which has set our rates) came into force. As I am for sure the Business Differential could be around the $1.50 mark if Council could balance its books properly. So much with a Business Diff at $2.63 for Auckland being the most livable city (when we rate our businesses into oblivion).
With this next article it is a case of you win some and you lose some:
5:30 AM Tuesday Jul 31, 2012
Auckland Mayor Len Brown’s old city of Manukau – home to many of the poorest suburbs in Auckland – is being hit with a 41.4 per cent rise in wastewater charges. Combined with a 3 per cent rise in rates, that makes the 95,000 households in Manukau the biggest losers of a single rating system for the Super City with an average increase of 10.3 per cent. The move to a single charge for wastewater has resulted in significant rises and falls across the region with residents in Manukau, Waitakere and the North Shore feeling the brunt of the increases.
The big winners are residents in the old Auckland City, who have been paying wastewater charges based on use through Metrowater, a council company, since 1997 when other councils subsidised the true cost of wastewater in their rates. Auckland City wastewater charges are falling by an average of 19.6 per cent, although some low water users will pay more. Mr Brown – the former Mayor of Manukau whose political career began on the streets of Otara – yesterday denied that Manukau had subsidised wastewater through rates.
Thank Lord I moved from Manukau to Papakura with incoming waste-water charges going up like that. If you compare the jump in water prices to your rates bill as shown in the embed below, maybe Orakei and Councillor Brewer got a sweet deal after all – because Manukau sure did not looking at the averages.
However averages are averages. VOAKL is interested to hear how you “feel” once your rates and water bill arrives in your letter box. Did you get stung or did you in the overall scheme of things get some savings? Comment below.
As for me:
Residents in the former Papakura District Council will continue to be billed by United Water, which has provided water and wastewater services since 1997 to about 15,000 customers under a 30-year franchise agreement.
So a sweet deal through to 2027?
Time to review the books again folks, especially as I see the following article from The NBR: NZ families fret over fraught financial situation – survey