Homeowners have received some confronting emails from Auckland Council this week as invoices for dramatically increased rates begin to land in inboxes.
One pensioner the Herald spoke to had his rates increase nearly $500 per quarter compared to this time last year.
There are two factors behind this year's rates increases.
The overall rates increase is 5.6 per cent, including a new targeted rate for climate action.
However, the average household rates increase is 6.4 per cent due to a plan to gradually reduce business rates and gradually increase household rates over time.
The second reason is last year's revaluation of properties.
Invoices seen by the Herald show one Auckland man's rates for his Panmure/Mt Wellington home have increased substantially.
The man's rates for the July 2021-June 2022 period were $879.01 per quarter when his property had a capital value of $1.2 million.
The latest invoice, which he received today, values his property at $2.5 million and has billed him $1325.72 per quarter.
"I was just shocked. It's now costing me $100 a week for rates, plus water rates on top of that," he said.
The 72-year-old said if he was not receiving an income in addition to his superannuation, he would be struggling.
"I have a little bit of other income but nothing major. If I was purely reliant on my national superannuation, that would be a quarter of my income just gone on Auckland city rates," he said.
Another invoice the Herald saw shows a Sandringham resident's rates have increased by $167 per quarter.
For the July 2021-June 2022 billing period, the resident's property had a capital value of $1.1m and they were charged $830 per quarter.
Their latest invoice, for the July 2022-June 2023 period, values the property at $1.8m and charges $997.13 per quarter.
Under the new house valuation exercise, householders whose homes have risen by more than the average will have a rates increase above the 6.4 per cent figure. The opposite is true with a value change below average.
Auckland Council manager, financial policy, Andrew Duncan said changes in rates for the 2022/2023 financial year were first consulted on in February this year.
They were publicly confirmed at the end of June, as part of the council's Annual Budget 2022/2023 consultation.
"The general rates increase was kept at 3.5 per cent, previously agreed in the 10-year Budget 2021-2031, which was publicly consulted on in February 2021," Duncan said.
The first rates instalment is due on August 31.
- Julia Gabel and Bernard Orsman, NZ Herald