Council votes to hike rates

Auckland Town Hall
Auckland Council has voted on a proposal to increase rates. Photo / Wikimedia.org

Auckland Council’s budget committee has voted for a proposal to increase rates.

Mayor Len Brown said at a meeting this morning that he supports the proposal, which would see rates rise up to 3.5 per cent.

Auckland Council voted 16-7 in favour of the overall rise. Councillor Bill Cashmore said that 2.5 per cent isn’t sustainable with the population increase of 2.4 per cent annually.

Mr. Brown told the committee he could not see a way to keep rates below a 3.5 per cent annual increase for each of the next 10 years.

Councillors also debated the $2.4 billion City Rail Link project, which is due to begin in 2016.

Mr. Brown said the project will be funded by borrowing, resulting in $90 million in interest payments.

Listen to an audio version of this news report below: