What we are proposing

We are proposing some changes to targeted rates. The changes are mainly to ensure we are covering the necessary costs.

If we do not proceed with the changes then the general rates increase may need to be higher than we have proposed.

Changes to waste management targeted rates and charges

Despite some material cost increases, we are proposing only minor adjustments to rates for the standard rubbish collection service as we expect a reduction in household rubbish volumes following the roll-out of the food scraps service.

However, the cost of waste management base services, which includes recycling and regional initiatives, is expected to increase by 10.6 per cent due to significant increases in labour costs and road transport related costs.

The combined increase in the refuse rate and base waste management rates is a 4.8 per cent increase for a standard waste management service, representing a 0.5 per cent increase in total rates.

Our targeted rate funded food scraps service is available in Papakura and parts of North Shore.

We are rolling out the service to the rest of the North Shore and Waitākere during the current 2022/2023 financial year.

From July 2023, the food scraps service will roll out to Auckland's remaining urban and semi-urban parts.

Food scraps targeted rate

We are proposing that the food scraps targeted rate be extended to those areas where the service is being introduced.

Where the service commences part way through the 2023/2024 financial period the targeted rate will be charged on a pro rata basis, reflecting the approximate number of months the service is available in each area.

Split of the base service rate

We are also proposing to split the base service rate into two separate rates. This would include a standard recycling targeted rate of $95.98 and a minimum base service targeted rate of $59.31 in 2023/2024.

This will allow non-residential properties to opt out of council’s recycling service and associated targeted rate if they wish to do so.

80-litre bin service option

We propose introducing the option of 80-litre bin service to properties in the former Auckland City Council (ACC) and Manukau City Council (MCC) districts, funded by a targeted rate of $143.71.

This will allow ratepayers who have low refuse needs to reduce their rates charges.

Increase of the targeted rate for 240-litre bin service

We propose increasing the targeted rate for the 240-litre bin service in the former ACC and MCC districts to $287.41 (166 per cent of the proposed standard refuse targeted rate of $173.14 for a 120 litre bin).

This is to more closely align the charge for this service with actual costs.

Introduce $40 fee for swapping bin sizes

We propose introducing a $40 fee for swapping to a different size bin.

It currently costs us around $310,000 a year to administer bin swaps. This cost is currently funded from the waste management base service targeted rate which is paid by every bin user.

Introducing a fee will ensure more efficient use of our resources and that costs are paid for by those who choose to use the service.

When the rates funded service is rolled out to new areas customers will be offered a choice of bin size without charge.

Extension of our waste management services

We propose extending our waste management services to the commercial areas in the former Manukau City, with Howick, Hunter’s Corner and Papatoetoe starting to receive our services from 2023/2024 on an opt-in basis for commercial properties.

Adjustment of other targeted rates for waste management

Finally, we propose adjusting other targeted rates for waste management services to reflect movement in the costs of providing these services.

Accommodation provider targeted rate

The Accommodation Provider Targeted Rate (APTR) previously funded 50 per cent of Tātaki Auckland Unlimited’s destination expenditure particularly on visitor attraction and major events.

The rate was suspended, and associated expenditure reduced, in response to the impact of COVID-19.

The rate was then removed from the rating policy following the Court of Appeal decision in 2021.

We have appealed the Court of Appeal decision to the Supreme Court who have not yet released their decision.

The 10-year Budget 2021-2031 assumed that $15.1 million from the APTR and associated expenditure would be reinstated from 2023/2024. However we cannot consider reinstating the APTR until the Supreme Court delivers its decision on our appeal.

Tātaki Auckland Unlimited’s expenditure for visitor attraction and major events for 2023/2024 will be substantially reduced as the funding from the APTR is no longer available.

Additional general rates funding for expenditure on visitor attraction and major events is not a priority given the significant budget pressures that we are facing.

The impact of the reduction in funding on Tātaki Auckland Unlimited's spending is set out on pages 36-38 of the consultation document (PDF 12.8MB).

Climate action targeted rate programme

We propose to partially reprioritise $10.5 million of additional bus service expenditure that was planned to be funded by the Climate Action Targeted Rate (CATR) for the 2023/2024 year.

Operational constraints mean that CATR funded bus services, originally planned for delivery in the first half of 2023/2024, are now planned for delivery in the second half of the year.

This creates savings in the CATR bus services budget in 2023/24 that are now proposed to be used to fund the North West bus service improvements and bring forward funding for two new frequent bus routes in East Auckland.

The proposal does not impact on the level of the CATR charged in 2023/2024 or the plans for CATR funded services beyond 2023/2024.

The proposal ensures that we can continue to deliver the climate and service outcomes for which the CATR was established while helping manage the financial challenges that we are now facing.

Other changes to rates policy

We are proposing amendments to the boundaries of the rating maps for the Te Arai and Okahukura drainage districts to better reflect the areas benefiting from the relevant drainage schemes funded by the Rodney Drainage.

Districts Targeted Rate

• An increase to the Swimming Pool/Spa Pool Fencing Compliance Targeted Rate from $46.67 to $63.33 to reflect the actual cost of this service. The fee for follow up inspections is also proposed to increase from $140 to $190.
• Establishment of a Business Improvement District (BID) and BID targeted rate for Silverdale.

You should know

This information is an edited version of the Annual Budget 2023/2024.

See pages 54 - 56 of the Annual Budget 2023/2024 (PDF 12.8MB) for more information.