Fears for rates rise
By LIZ WILLIS - North Shore Times
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Ratepayers could face large, unaffordable rate rises under a supercity if the development contribution issue isn’t resolved, warns Shore councillor Grant Gillon.
Mr Gillon describes it as a "big forgotten issue" during government planning for an Auckland supercity.
Just over half of the cost of new infrastructure, including sewers and roads, in North Shore city is paid for by those contributions, says Mr Gillon.
The 15-year city plan predicts next year $23 million will be gained from development contributions, peaking at $47m in 2020/2021.
Its importance as a funding source means North Shore City Council is "nervous" that its future is still up in the air, says Mr Gillon.
A future without development contributions will prompt a major review of important projects that would result in long delays, rate increases or increased debt, he says.
Mr Gillon says all of those would be untenable for Shore residents.
The council is expected to prepare a final budget for 2010/2011 and work starts in earnest in February so the issue must be resolved soon, he says.
Local Government Minister Rodney Hide says he recognises the transition to a new Auckland Council raises issues about development contributions.
"I can confirm that the third Auckland bill will include provisions on the application of development contributions in the transition to the new Auckland Council framework.
"The detail for this is still under development and will be subject to the select committee submission and consideration process," Mr Hide says.
He says he has received correspondence from the North Shore City Council on the issue that has been referred to departmental officials.
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If Rodney Hide falls for this line of rubbish from North Shore City then that proves the politicians have no concept about the truth. North Shore City has recently "raised the prices for all Development Levies" which apply to House Extensions as well as any new building no matter how small on an existing site. The problem at North Shore is they are feeding huge sums into new parkland and beach front land at absolutely TOP PRICES all the time. The total sum being collected is way down because the quantum of the levies are extreme and costly. The loser is the Building Indusrty, and Employment, in North Shore plus very low growth below the New Zealand Average!