Rodney’s rates to rise

4 September 2009

The Auckland Regional Council (ARC) is predicting there may be substantial rates increase for some Rodney District residents following the Government’s decision to shift Auckland’s northern boundary today.

“We have done some quick calculations based on Kaipara District Council’s current rates policy, and it is obvious rates will need to rise to provide existing levels of service,” says Michael Barnett, Deputy Chair of the ARC.

Analysis undertaken by the ARC shows that ARC currently spends $2.13 in Rodney for every $1 of rates it collects.

The ratepayers of northern Rodney may also face a new rating system.

“Kaipara District Council bases most of its rates on land value, which tends to place a greater rating burden on properties with a higher land value but a lower value of improvements.

“Under Kaipara’s policy, farmers are likely to pay a greater share than they would under Rodney District Council

“For example, a farm worth $1.1 million near Wellsford could face a rise of up to 48 per cent, depending on the level of stormwater rates charged.

“At the moment, Rodney District Council is able to use rates from built-up areas such as the Hibiscus Coast to subsidise the rural areas of Rodney. When northern Rodney joins Kaipara district and Northland region, these urbanised areas will no longer subsidise council services for northern Rodney,” says Cr Barnett

Kaipara District Council and Northland Regional Council are likely to review their rating policies. The new Auckland Council will also need to develop a unified rating policy for the entire Auckland region.

“Future rates calculations for properties in Kaipara and Auckland will depend on rating policies adopted by each council,” says Cr Barnett.

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