11 May 2023

How high could Auckland rate rises go with Council budget blowout?

From Nine To Noon, 9:05 am on 11 May 2023
Auckland Mayor Wayne Brown at a council meeting on 23/3/2023

Photo: RNZ / Finn Blackwell

Aucklanders are facing even bigger potential rates rises and service cuts. The council's budget shortfall for the next financial year is expected to reach 375 million dollars, up from $295m. 

And on top of that there's another $50m in storm-related costs. 

Councillors attended a closed-door workshop on yesterday morning to receive a budget update, ahead of approving the annual budget next month. 

Mayor Wayne Brown warned councillors that without savings, that would equate to a rate rise of more than 20 percent, which some have labelled scaremongering. 

Multiple options are on the table to address the budget gap, including a complete or partial sell-down of the council's $2 billion stake in Auckland Airport, cutting running costs from between $80m-130m and rates rises. 

Most submitters who gave feedback on the proposed annual budget supported selling at least some airport shares to boost revenue, but wanted fewer funding cuts. 

To discuss the situation, Manukau Ward councillor Alf Filipaina and Viv Beck, a former Mayoral candidate and CEO of Heart of the City.