32% Valuation Rise does not mean a 32% rates rise
By now you would have seen the increased chatter around the new Council Valuations on property around Auckland and what this could mean for your Rates in the 2015-2025 Long Term Plan. I can tell you now that a 32% rise in your Council Valuation DOES NOT mean a 32% Rates rise unless the Council wants a City-wide riot on its hands.
However, the new valuations will determine in part how much share of the total Rates pie you will be paying. What your final Rates bill will be depending on the following charges or formula’s been set and as shown below (using my Rates bill as an example):
So you have:
- The Uniform Annual General Charge, currently set at the low-end of $350 and indexed year on year
- The General Rate
- Waste Management Rate
- Targeted Rates (like a Town Centre BID, or the City Centre Targeted Rates
While the Waste Management Rate, and the Targeted Rate will have an influence on your final Rates bill it is the Uniform Annual General Charge level and the General Rate that have the biggest influence.
As is coming through the debate amongst the Councillors and the Local Boards right now the UAGC level will determine how the formula is set for the General Rate. A higher UAGC does not necessarily mean a lower General Rate formula for all properties as this 2012 paper on the UAGC shows:
Now with the large valuation increases across the bulk of Auckland (some as high as 53%) the Council needs to work out first where the Uniform Annual General Charge level is going to sit. Because depending where its sits is depending where the General Rate formula will sit. So the Council needs to decide which level it will be and who will be better or worse off in the upcoming Rates rises, your levels being:
- Low at $350 (indexed of course) which benefits Southern and parts of Western Auckland in expense to the eastern Isthmus on rates rises
- Medium at $450 which is a bit of a mix on benefits and costs
- High at $750 (maximum a UAGC can be set to in Auckland is 30% of a total Rates bill, currently it is at 13%) which benefits the Isthmus and lower North Shore at the expense of Southern and Western Auckland
On that alone you can see how the cards will fall in the upcoming debate on where the UAGC should be set.
At the end of the day the City will be given the opportunity for its feedback on the Long Term Plan which includes your Rates early next year before the LTP goes live July 1 2015. That said I am already seeing Councillors and Local Boards drawing their battle lines in the sand. Suffice to say this could get ugly pretty fast depending on how willing the Mayor is willing to be flexible around the Uniform Annual General Charge.
You can hear the Mayor on the situation here:
The full report can be seen here:
http://www.radionz.co.nz/news/regional/257264/auckland’s-snubbed-suburbs-now-popular
Seems South Auckland is taking quite a bit of the brunt here – as was expected when the restrictive NIMBY zoning for the Isthmus came out in the Proposed Auckland Unitary Plan!
General Valuations increase by average percentage
| SUBURB | Average Change in CV (%) |
| ALBANY | 23 |
| ALBANY HEIGHTS | 32 |
| ALFRISTON/THE GARDENS | 21 |
| ALGIES BAY | 13 |
| ANAWHATA/PIHA | 3 |
| ARARIMU/BOMBAY/RAMARAMA | 28 |
| ARDMORE/CLEVEDON | 25 |
| ARKLES BAY | 25 |
| ARMY BAY | 19 |
| AUCKLAND CENTRAL | 26 |
| AVONDALE | 47 |
| AWHITU | 8 |
| BAYSWATER | 29 |
| BAYVIEW | 44 |
| BEACH HAVEN | 44 |
| BEACHLANDS | 30 |
| BELMONT | 31 |
| BETHELLS BEACH | 26 |
| BIG OMAHA/POINT WELLS/TI POINT | 18 |
| BIRKDALE | 44 |
| BIRKENHEAD | 38 |
| BLOCKHOUSE BAY | 46 |
| BOTANY DOWNS | 35 |
| BROOKBY/WHITFORD | 24 |
| BROWNS BAY | 43 |
| BUCKLAND | 23 |
| BUCKLANDS BEACH | 39 |
| BURSWOOD | 38 |
| CAMPBELLS BAY | 36 |
| CASTOR BAY | 33 |
| CHATSWOOD | 40 |
| CLARKS BEACH/WAIAU PA | 14 |
| CLENDON PARK | 33 |
| CLOVER PARK | 30 |
| COATESVILLE/LUCAS HEIGHTS | 23 |
| COCKLE BAY | 28 |
| CONIFER GROVE | 24 |
| CORNWALLIS/HUIA | 19 |
| DAIRY FLAT | 23 |
| DANNEMORA | 42 |
| DEVONPORT | 26 |
| DOME FOREST/DOME VALLEY | 13 |
| DRURY | 23 |
| EAST TAMAKI | 28 |
| EAST TAMAKI HEIGHTS | 36 |
| EASTERN BEACH | 33 |
| EDEN TERRACE | 24 |
| ELLERSLIE | 41 |
| EPSOM | 46 |
| FAIRVIEW HEIGHTS/REDVALE | 34 |
| FARM COVE | 40 |
| FAVONA | 40 |
| FLAT BUSH/TOTARA PARK | 32 |
| FORREST HILL | 55 |
| FREEMANS BAY | 36 |
| GLEN EDEN | 42 |
| GLEN INNES | 55 |
| GLENBROOK | 11 |
| GLENDENE | 38 |
| GLENDOWIE | 34 |
| GLENFIELD | 49 |
| GLORIT/KAIPARA FLATS/MAKARAU | 17 |
| GOLFLANDS | 37 |
| GOODWOOD HEIGHTS | 24 |
| GRAFTON | 29 |
| GREAT BARRIER ISLAND (AOTEA ISLAND) | -9 |
| GREEN BAY | 39 |
| GREENHITHE | 31 |
| GREENLANE | 44 |
| GREY LYNN | 36 |
| GULF HARBOUR | 25 |
| HALF MOON BAY | 41 |
| HATFIELDS BEACH | 30 |
| HAURAKI | 33 |
| HELENSVILLE | 22 |
| HENDERSON | 40 |
| HENDERSON VALLEY | 27 |
| HERALD ISLAND | 16 |
| HERNE BAY | 25 |
| HIGHLAND PARK | 33 |
| HILLCREST | 50 |
| HILLSBOROUGH | 36 |
| HOBSONVILLE | 65 |
| HOWICK | 37 |
| HUAPAI | 39 |
| HUNTINGTON PARK | 38 |
| HUNUA/ORERE POINT | 3 |
| KARAKA/KINGSEAT | 21 |
| KAREKARE | 8 |
| KARIOITAHI/POLLOK | 7 |
| KAUKAPAKAPA | 29 |
| KAWAKAWA BAY | 15 |
| KAWAU ISLAND | -14 |
| KELSTON | 47 |
| KINGSLAND | 41 |
| KOHIMARAMA | 30 |
| KUMEU/TAUPAKI | 40 |
| LAINGHOLM | 17 |
| LEIGH/WHANGATEAU | 5 |
| LONG BAY | 32 |
| LYNFIELD | 34 |
| MAHURANGI EAST | 12 |
| MAHURANGI WEST | 15 |
| MAIRANGI BAY | 36 |
| MANGAKURA | 9 |
| MANGERE | 40 |
| MANGERE BRIDGE | 53 |
| MANGERE EAST | 42 |
| MANLY | 23 |
| MANUKAU | 28 |
| MANUKAU HEADS | -2 |
| MANUREWA | 35 |
| MANUREWA EAST | 30 |
| MARAETAI | 29 |
| MASSEY | 41 |
| MATAKANA | 12 |
| MATAKATIA | 15 |
| MAUKU/PATUMAHOE/PUNI | 15 |
| MEADOWBANK | 41 |
| MELLONS BAY | 31 |
| MILFORD | 38 |
| MISSION BAY | 32 |
| MOUNT ALBERT | 38 |
| MOUNT EDEN | 39 |
| MOUNT ROSKILL | 43 |
| MOUNT WELLINGTON | 41 |
| MURIWAI | 15 |
| MURRAYS BAY | 41 |
| NARROW NECK | 27 |
| NEW LYNN | 45 |
| NEW WINDSOR | 58 |
| NEWMARKET | 32 |
| NORTHCOTE | 41 |
| NORTHCOTE POINT | 39 |
| NORTHCROSS | 37 |
| NORTHPARK | 40 |
| OKURA | 35 |
| OMAHA | 14 |
| OMIHA | 8 |
| ONE TREE HILL | 42 |
| ONEHUNGA | 37 |
| ONEROA | 18 |
| ONETANGI | 16 |
| OPAHEKE | 29 |
| ORAKEI | 42 |
| ORATIA | 16 |
| OREWA | 24 |
| OSTEND | 18 |
| OTAHUHU | 36 |
| OTARA | 35 |
| OTEHA | 22 |
| PAERATA/RUNCIMAN | 20 |
| PAHUREHURE | 25 |
| PAKIRI/TOMARATA/WHANGARIPO | 16 |
| PAKURANGA | 43 |
| PAKURANGA HEIGHTS | 45 |
| PALM BEACH | 10 |
| PANMURE | 45 |
| PAPAKURA | 29 |
| PAPATOETOE | 35 |
| PARAKAI/SOUTH HEAD | 24 |
| PARAU | 18 |
| PAREMOREMO | 23 |
| PARNELL | 31 |
| PENROSE | 39 |
| PINEHILL | 28 |
| POINT CHEVALIER | 42 |
| POINT ENGLAND | 62 |
| PONSONBY | 36 |
| PORT ALBERT/TE HANA | 8 |
| PUHOI | 17 |
| PUKEKOHE | 26 |
| RAKINO ISLAND | -23 |
| RANDWICK PARK | 39 |
| RANUI | 38 |
| RED BEACH | 25 |
| RED HILL | 25 |
| REMUERA | 40 |
| RIVERHEAD | 53 |
| ROSEDALE | 28 |
| ROSEHILL | 31 |
| ROTHESAY BAY | 30 |
| ROYAL OAK | 39 |
| SAINT HELIERS | 31 |
| SAINT JOHNS | 35 |
| SAINT MARYS BAY | 32 |
| SANDRINGHAM | 40 |
| SANDSPIT | 8 |
| SCHNAPPER ROCK | 32 |
| SHAMROCK PARK | 31 |
| SHELLY BEACH | 16 |
| SHELLY PARK | 31 |
| SILVERDALE | 27 |
| SNELLS BEACH | 11 |
| SOMERVILLE | 36 |
| STANLEY POINT | 25 |
| STANMORE BAY | 28 |
| STILLWATER | 22 |
| STONEFIELDS | 46 |
| SUNNYHILLS | 42 |
| SUNNYNOOK | 55 |
| SUNNYVALE | 42 |
| SURFDALE | 17 |
| SWANSON | 35 |
| TAKANINI | 32 |
| TAKAPUNA | 30 |
| TAPORA/WHAREHINE | 15 |
| TAUHOA/TE ARAI/WELLSFORD | 25 |
| TAWHARANUI PENINSULA | 11 |
| TE ATATU PENINSULA | 51 |
| TE ATATU SOUTH | 42 |
| THREE KINGS | 36 |
| TINDALLS BEACH | 14 |
| TITIRANGI | 30 |
| TORBAY | 36 |
| TOTARA HEIGHTS | 23 |
| TOTARA VALE/WAIRAU VALLEY | 47 |
| UNSWORTH HEIGHTS | 38 |
| WAI O TAIKI BAY | 52 |
| WAIAKE | 27 |
| WAIATARUA | 12 |
| WAIHEKE ISLAND | 8 |
| WAIMAUKU | 25 |
| WAINUI/WAITOKI | 22 |
| WAITAKERE | 37 |
| WAIUKU | 20 |
| WAIWERA | 28 |
| WARKWORTH | 19 |
| WATERVIEW | 45 |
| WATTLE DOWNS | 33 |
| WEST HARBOUR | 35 |
| WESTERN SPRINGS/MORNINGSIDE | 33 |
| WESTGATE | 34 |
| WESTMERE | 36 |
| WEYMOUTH | 31 |
| WHENUAPAI | 39 |
| WINDSOR PARK | 39 |
| WIRI | 29 |
Source: New Zealand Herald
Talking Southern Auckland 