Impact of rates on Hibiscus Coast analysed

Impact of rates on Hibiscus Coast analysed

Rates bills began dropping into mailboxes this week, and some residents have already taken a look at what they’re in for on Auckland Council’s ratings information database, which went live on its website last month.

Although Mayor Len Brown’s promise to hold the rates rise to 2.5 percent proved to be hollow for much of Auckland, figures show that on average the Hibiscus Coast has had increases below that figure – with Hatfields Beach and Silverdale the notable exceptions.

In fact, for most Hibiscus Coast ratepayers there will be little difference between last year’s rates bill and this year’s. In areas such as Army Bay, Manly, Hobbs Bay, Matakatia, Tindalls Bay and Waiwera many residents may actually experience a reduction in the amount of rates that they have to pay.

This is despite the introduction of a targeted transport rate of $114 per household.

The data covering the average rate increases for the Coast was produced by Auckland Council’s Rating Department in response to a request from local councillors John Watson and Wayne Walker.

The figures show the average percentage increase or decrease for each suburb and the actual dollar sum involved – because the figures given are averages, there will of course be residents with rates both above and below those figures.

Cr Walker says that the most significant influence on rates this year is the huge increase in property values across Auckland.

The average increase in property value is 34 percent (which equates to an average residential rates increase of approximately 9 percent). The only areas on the Hibiscus Coast where property revaluations are above this 34 percent average are Silverdale (49.8 percent) and Hatfields Beach (35.6 percent). As a result, those two areas have experienced average rates increases of 11.5 percent and 10.3 percent respectively (the average residential rates increase for Auckland is 9.9 percent).

The new targeted transport rate of $114 is included in all these figures.

Cr Watson warns that if the value of property on the Hibiscus Coast continues to rise, rates for this area could go through the roof.

“While generally speaking the Coast is one of the few areas that has emerged relatively unscathed from this current rates round, that could change if local property revaluations spiral more than the Auckland average in the future, as has happened elsewhere,” Cr Watson says.

The councillors say that pressure must be put on central government to fund more of the big projects like the rail network and major arterial roads.

“If this were to occur it would provide immediate relief to ratepayers over the next decade, especially if council were to simultaneously rigorously audit all its own expenditure, especially across its CCOs.”
How CV affects rates
Since Auckland Council moved to a capital value (CV) rating system, rather than land value alone, many ratepayers are unsure how their CV can go up, but their rates remain the same or drop.

This is because rates are calculated in relation to the overall average increase in CV across Auckland.

So, for instance, if Army Bay’s average property value increase is 16 percent and the Auckland average is 34 percent, then Army Bay is below the region’s average and rates there will reflect that.


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