Auckland Mayor Proposes Record Budget with Significant Rate Hike

Auckland Mayor Wayne Brown has presented a draft budget for the upcoming fiscal year that proposes a significant rise in residential rates, reflecting his established intentions from two years ago. The average residential rate is projected to increase by 7.9 percent, aligning with forecasts made in the ten-year budget unveiled in early 2024. This proposed increase is notable as it nearly doubles the New Zealand Government’s recently announced rates cap range of 2-4 percent for local councils.

This increase marks a historic rate hike since the formation of the Auckland Council in 2010. The rise is largely attributed to financial obligations stemming from the completion of the $5.5 billion City Rail Link, which is set to open soon. Mayor Brown acknowledged that while the proposed increase is necessary, it exceeds his personal preference.

In a 14-page proposal scheduled for discussion among councillors in a workshop this week, Brown stated, “This is higher than I would like.” The mayor anticipates that beyond the next fiscal year, rates will continue to rise annually in accordance with inflation, plus an additional 1.5 percent. If the current annual Consumer Price Index (CPI) figure of 3 percent remains constant, future rate increases could exceed the government-imposed cap.

Despite the lack of surprises in the budget, initial assessments from staff indicate that significant financial adjustments are required to achieve the proposed savings of $106 million for the council. The current operating deficit stands at approximately $50 million, which is consistent with challenges faced during the development of the Annual Plan for 2025-2026.

The mayor’s draft budget expresses concern over the pace of selling non-core assets, with a target of $34 million in sales for the 2026-2027 fiscal year set for Chief Executive Phil Wilson. The proposal outlines various areas of focus, particularly economic development, and suggests a revamped Economic Development Strategy. Brown aims to foster a “vibrant city” with strong trading relationships, especially with countries like China and India, and to encourage a thriving start-up ecosystem along with sustainable investments in technology and innovation.

Brown also highlighted the necessity for increased job creation in Auckland’s southern and western regions to prevent local youth from seeking opportunities overseas. He emphasized ongoing urban regeneration efforts but indicated that future initiatives should rely less on council resources.

Attention to the city centre is another priority, with the mayor proposing immediate actions under the City Centre Safety Action Plan. This plan aims to strengthen collaborative efforts with central government, positioning the council as the lead agency for urban spaces while recognizing the government’s role in managing social behavior.

A distinctive aspect of Brown’s budgeting approach is adherence to the annual forecasts outlined in the ten-year budget, limiting opportunities for public input. He stated, “This annual plan requires very little consultation in terms of changing what was agreed to for year three in the LTP 2024-2034. This is exactly as it should be.” Nevertheless, he expressed a desire to engage with the community regarding their priorities for Auckland in the coming years.

The draft proposal also touches on potential changes to Te Ara Tukutuku, an award-winning initiative aiming to develop a waterfront park on the former tank farm at Wynyard Point. Brown noted that parts of this ambitious project remain unfunded, which could hinder its use for events like Sail GP and the Ocean Race. He suggested that while decontamination efforts should proceed as planned, a reassessment of the project is warranted to maximize its value and versatility.

The budget draft will be publicly discussed by councillors in a meeting scheduled for December 15, 2025, followed by public consultations in February and March 2026. The finalized budget is expected to be approved in June 2026. Mayor Brown plans to be away on a week-long trip, including attending the inaugural service of China Eastern Airlines to Brazil, during which he will advocate for streamlined transit visas for Chinese travelers using this new route.