Auckland councillors have voted 14 to seven to accept the annual budget proposed by Mayor Wayne Brown, which will see rates bills rise by an average of 7.9%.
The budget targets $106 million in operating cost cuts for the next financial year and includes $3.6 billion of capital spending on transport and water infrastructure, community services and regional assets for the year from 1 July.
North Shore councillor John Gillon proposed an amendment seeking a lower rates rise of 5.9%, supported by Howick ward councillor Bo Burns. The amendment sought $60 million in additional cuts to reduce the rates increase.
Burns stated that in many parts of Auckland, residents are facing effective increases closer to 12% to 15%, with just under a thousand Aucklanders facing 50% or more due to valuation redistribution. Auckland Council disputes this, stating no residential properties that have gone unchanged in the past year will have a rates rise over 10%.
Deputy mayor Desley Simpson said the mayor's budget had already absorbed about $230 million in financial pressure, close to the entire rates revenue of Hamilton City Council. She said "the risks and consequences of not achieving that target for me is simply too great".
The budget includes $235 million for funding and running the City Rail Link train stations and upgraded rail service. Mayor Wayne Brown said "we've got this railway, if you don't pay for it this year it's just going to be more next year".
Councillors will give the budget final sign off in late June.