Underestimated disaster recovery costs partly to blame for Auckland rate rises - Wayne Brown

Auckland Mayor Wayne Brown says underestimated disaster recovery costs are partly to blame for Auckland Council setting higher rates this year.

A partnership with central government to help Auckland rebuild after severe weather events in 2023, costing $2 billion, wrapped up this week.

But Mayor Brown said while it was initially projected that 700 properties would take up a voluntary buy-out scheme, the final number was closer to 1200, and the higher-than-expected cost was passed onto ratepayers.

"The early estimates set the foundation for key funding decisions," he said.

"Good decision-making relies on reliable information, and in situations like this, I would've preferred if they'd said, 'we don't know' how many properties might be affected."

Aucklanders' rates bills are set to rise by an average of nearly eight percent this year, with funding the City Rail Link build, as well as the running costs of the enhanced rail services, all on Auckland Council's plate.

The council set a target of cutting operating costs by $106 million in the next financial year to offset some of that.

Brown said with severe weather becoming more frequent, the government and the insurance industry needed to be prepared to take on more of the cost.

"Ratepayers are not insurers and shouldn't bear the burden of the cost of major weather events," he said.

"With ongoing budget pressures and the possibility of rates caps, councils simply do not have the financial capacity to absorb events of this scale.

"This is not unique to Auckland. We need a sustainable national approach in place before the next major disaster strikes. This is a nationwide issue that requires a coordinated government and insurance industry response."

He has called for a "nationally-led funding model".