Rates Will Increase By Almost 54% In Just Four Years

The North Shore City Council's decision last Friday to increase rates by 9.6% is outrageous for a single year’s increase.

But worse is to come.

In the 10-year plan approved today there are are increases proposed of between 8.6% and 9% for each of the following three years.

As a result of the compounding effect of successsive increases of this size the average ratepayer currently paying $1,456 a year will be paying $2,236 in 2010/11, - the year before New Zealand host the Rugby World Cup.

That is a whacking 54% increase in just four years.

That increase percentage relates to the council’s total rate ‘take’ and is the ‘average’ increase across the city.

For individual ratepayers whose homes were recently revalued above the average value increase that 54% rate hike could be as high as 75% or even 80%.

The time has come for legislation to be passed putting strong limits on councils’ ability to lift expenditure which leads to rate increases way beyond the rate of inflation.

While some ratepayers will benefit from increased rate rebates from July 1st, that benefit will soon be whittled away by these horrendous rate hikes.

Instead of continually bashing the ratepayers the council should be pressing central government to remove the effect of GST from rates – and to urgently find an alternative funding structure for local government.

ends

© Scoop Media