Super-Sized Rates, Financing Costs For Super City Exposed In NZ League Tables
9 SEPTEMBER 2018
FOR IMMEDIATE RELEASE
No other council in the country spends as much as Auckland Council per ratepayer when it comes to servicing debt, according to Ratepayers’ Report, an initiative of the Auckland Ratepayers’ Alliance and the New ZealandTaxpayers’ Union, available at www.ratepayersreport.nz. Even with historically low interest rates, the Council spends $794 per ratepayer, per year servicing its $11.58 billion of borrowings.
Jo Holmes, spokesperson of the Auckland Ratepayers' Alliance, says “Councils use debt to limit rates hikes and to spread the burden of projects over generations, allowing those who benefit from the project to pay their fair share. However, Auckland ratepayers appear to get the worst of both worlds. They pay more today with the second highest average residential rates in the country and the highest financing costs of any council, nationwide, and they will have to fork out tomorrowwith debt per ratepayer second only to post-earthquake Christchurch City Council.”
“The super city was created to bring about efficiencies - Mayor Goff even campaigned to cut waste by 3-6 percent per annum. However, when compared to similar unitary authorities, Auckland Council employs twice as many staff per ratepayer than Marlborough District Council - a difference that costs Auckland ratepayers an additional $450 each per year in personnel costs.”
“This strongly suggests Auckland Council is overstaffed. Ratepayers should encourage the Mayor to close unnecessary departments of the council, perhaps even ATEED, and prioritise core council business.”
“Ratepayers’ Report also reveals that Auckland Council spent more than half a million dollars on lobbyists in 2017. This is not core council business.”
“Ratepayers’ Report is available online and free of charge so all Auckland Ratepayers can judge for themselves the performance of the town hall.”
Other findings related to Auckland:
• Auckland Council charges higher average residential rates than any other unitary authority ($3,136). Only one council in New Zealand charges higher average residential rates than Auckland (Western Bay of Plenty District Council).
• Auckland Council employs 17 staff members for every 1,000 ratepayers (more than any other unitary authority). Marlborough District Council, another unitary authority, employs one member 10 staff for every 1,000 ratepayers.
• Last year, Auckland Council spent $1,439 per ratepayer on wages and salaries - earning it a place in the top 10 councils, nationwide, on this metric.
• Auckland Council has debt per ratepayer of $19,537, second only to post-earthquake Christchurch City Council. Auckland Council spends $794 per ratepayer servicing this debt.
• The Council spent $554,905 in affiliation with LGNZ ($429,391), SOLGM ($115,995), and the local Chamber of Commerce ($9,519) in 2017.
A Q & A covering the methodology of Ratepayers' Report is available here.
ENDS

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