COVID19 has required an unprecedented response at all levels of government and local council is not immune. As the health and economic impacts of the pandemic are beginning be understood, it's clear that we need to rethink our short term plans.
Despite significant support from the government, many households will find themselves struggling and it's entirely appropriate that council reconsiders it's budget. This week Councillors had a very long and detailed discussion about priorities for Council.
“Auckland Council will consult with the public on a rate increase of 2.5 or 3.5 per cent. For the average ratepayer, a 2.5 per cent increase would be equivalent to an extra $1.35 per week, while a 3.5 per cent increase would be $1.83 per week."
The Accommodation Provider Targeted Rate (aka Hotel Tax) is being suspended while there is no tourism and all ratepayers experiencing financial hardship will have chance to to defer payment of their fourth quarter rates installments.
Council will also do work to understand what a zero percent increase would mean for services. All of this will go out for public consultation. See the financial report here.
On top this, the chief executives of Auckland Council and its five council-controlled organisations will take a pay cut of 20 per cent for the next six months. Board chairs, directors and senior executives have volunteered pay cuts. See the announcement here.
The Mayor and many Councillors have also volunteered to donate a portion of their salary to charity (there isn't a method to reduce their pay).