Auckland Council has signed off its budget for the next 10 years, with $31.8 billion set aside for capital works.
Auckland Mayor Phil Goff says the council's rate rises are among the lowest in the country. Photo: RNZ/Nick Monro
Mayor Phil Goff said Auckland's average general rates rise would be 5 percent for the next year and 3.5 percent a year after that.
"That's probably one of the lowest in the country," Goff said.
"(It) compares with double digit increases this year in cities like Wellington and Tauranga."
The council's budget for 2021 to 2031 balanced the need for vital spending on infrastructure with the need to keep rates affordable, Goff said.
"We don't have the problems you have down there in Wellington" - Auckland Mayor Phil Goff
"Certainly, we don't have the problems you have down there in Wellington, with water pipes bursting on a weekly basis," Goff told Morning Report.
"We've put into our capital budget $31.8 billion - that's a 21 percent increase in capital investment over three years ago."
The council is planning a $4b boost for freshwater, wastewater, and stormwater projects; $600 million more for transport projects as part of the $31b Auckland Transport Alignment Project; and $900m of extra funding for parks and community facilities.
Although there will be $152 million of new spending to reduce carbon emissions and adapt to the impacts of climate change, the budget has been criticised for only reducing carbon emissions by about 1 percent.
Goff said the council would not buy any more petrol or diesel buses and would make the rest of the rail link to Pukekohe electric.
"Things like the congestion question, we've got to address that, to make sure people get out of single occupancy cars and into public transport - but we've got to ensure the public transport is there, it's safe, it's reliable, it's convenient."
He said about 37 percent of the city's income would come from rates, while the council's debt to revenue ratio would increase to 274 percent.
"Despite a $750 million projected revenue loss caused by the pandemic, we have not imposed austerity measures that would put essential services and projects at risk.
"Instead, we have pulled every funding and fiscal lever we can to retain the essential services and investments our communities rely on."
The council had found $120m of savings in the last year, through becoming a "leaner organisation", Goff said.
Auckland Transport has also approved its transport plan for the next decade.