Valuations a comfort for some
FEWER households will face massive rates hikes next year after new property valuations showed mostly modest increases.
But homeowners in Grafton and Western Springs may be among those who see a bigger rates bill.
New valuation notices, which determine how next year’s rates are set, were sent to households by Auckland City Council this week.
The recent house market slump has dampened residential property values, which increased by an average 11.7 percent since 2005.
In the last valuation three years ago, property values were up by an average of 51 percent.
Council finance general manager Andrew McKenzie says an overall increase in property value doesn’t mean a bigger rates take for the council.
“We work out how much money we want to spend, and then we spread that across ratepayers according to the value of their property,” he says.
Homeowners with properties that have increased more than the city average are likely to pay more rates next year.
These include Grafton, with an average annual value increase of 24 percent, Western Springs with 26 percent, and Waterview with 14 percent.
Homeowners may see a small drop in Eden Terrace, St Lukes, Owairaka, New Windsor, Three Kings, Ponsonby and Grey Lynn, where annual value increased by between 6 percent and 7 percent.
But all ratepayers will still be required to pay an inflation adjustment of 5 percent.
And a plan to spread rates more fairly between commercial and residential properties means residential homeowners will bear an extra 1.6 percent of the rates burden next year.
Homeowners have until December 1 to object to the valuation.
Several thousand objections are expected, which the council aims to have settled before rates notices are sent out next year.