Council’s DC Hikes: Ignoring Experts so Ratepayers Pay the Price
📊 Council’s DC Hikes: Ignoring Experts so Ratepayers Pay the Price 🏘️
Council’s plan to raise development contributions from $30,000 to $100,000 per dwelling in parts of Auckland isn’t just bad policy—it directly contradicts the Department of Internal Affairs’ explicit guidance to councils!
⚠️ The government clearly warns: “Development contributions result in reduction of land prices, developer margins, AND increased dwelling prices.”
⚠️ They specifically caution that “higher fees can result in developers halting development,” which means “local authorities do not receive planned revenue from new ratepayers.”
📚 Yet council commissioned the Murray report to claim—against all economic logic—that massive DC increases won’t affect housing delivery or prices and our elected members have been ‘fed’ this and one quoted it in the March 5 meeting in support of the hikes.
😈 They’re deliberately ignoring their own government watchdogs!
🔥 The Ratepayer Impact Is Enormous:
The Mangere footpath project: Council inflated costs from $60M to $260M with excessive management and forecasting. RATEPAYERS are already funding 85% of this! If developers stop building due to unreasonable DCs, ratepayers will cover 100%.
🔥 The consequences are serious:
No new houses = no population growth
No population growth = no new swimming pools or community facilities
No new developments = existing ratepayers shoulder ALL infrastructure costs
No new residents = higher rates for everyone
💢 This isn’t developers/growth vs. ratepayers—we’re ALL victims of council’s economically irrational policies.
💢 Why is there zero accountability when councils blatantly disregard government direction?
💢The council is not working for the people—they’re working against sound economic policy that would benefit our entire community.
💢 Auckland Council have shown us that they are inefficient managers of infrastructure — look at the mess we are in now
💰 Developers have had enough of being gouged. Ratepayers should be equally outraged at bearing the consequences of council’s refusal to listen to expert advice.
Ref: Guide to developing and operating development contributions policies under the Local Government Act 2002
