Auckland Council's 10-year budget could deliver rates hike

Aucklanders could be slapped with an average rates rise of 6.2 percent - much more than the promised 2.5 percent increase.

The city's mayor said plans to ditch the current transport levy would bring that number down, but there's concern the introduction of a regional fuel tax will offset any savings. 

"It's grossly unfair," Jo Holmes, from Auckland Ratepayers Alliance, told Newshub.

"When you promise one thing and do another, ratepayers get very upset."

It's part of the city's proposed 10-year budget that will see general rates increase, targeted rates and a regional fuel tax.

Some Aucklanders are concerned that could burn a big hole in their pockets, but Mayor Phil Goff said ratepayers actually stand to pay less than expected.

"We are removing the transport levy, which was $114 a year, even on those people who never use our public transport or roads," he said.

"A lot of people will be better off because of that."

Under the proposal, there will be a general rates rise of 2.5 percent for the next two years. An additional 2.8 percent would come in a water quality-targeted rate to clean waterways and beaches, while another 0.9 percent is a natural environment levy, to deal with problems such as kauri dieback.

It's a total increase of 6.2 percent.

However Mr Goff said ditching the interim transport levy will take that down to a 1.4 percent increase.

"I've absolutely kept my promise - 2.5 percent average rate increase, the removal of the interim transport levy and a regional fuel tax," he said.

"That's what I campaigned on, that's what I delivered."

The regional fuel tax is expected to be 11.5 cents per litre after GST and there's concern that will offset any savings made from canning the transport levy.

"They're trying to spin a 1.4 percent rise, when in reality, when you add back the fuel tax, the average household will be paying more than the transport levy," said Ms Holmes.

There's still time for Aucklanders to have their say on the proposal, with the draft 10-year plan open for public consultation next March.