Auckland Faces 7.9% Rate Hike Driven by City rail Link Costs & Budget Priorities
Auckland, New Zealand – Auckland Mayor Wayne Brown is proposing a 7.9% average rates increase for the 2026/2027 year, citing the ongoing costs associated with the City Rail Link (CRL) and a broader push for financial efficiency and smarter city services. The proposal, unveiled ahead of public consultation, aims to deliver savings and revenue growth while navigating the operational expenses of the $5.5 billion CRL project,which began construction in 2017 and is slated to open in the latter half of 2026.
The CRL is expected to nearly double Auckland’s rail transportation capacity and deliver “huge economic benefits” transforming the city, according to proponents. Though, operating the new infrastructure will require significant financial management. Deputy Mayor and Value for Money Committee Chair Desley Simpson stated a continued “unwavering focus on savings and financial efficiency” is crucial. “Having worked to achieve over $1b in financial benefits in the last six years, my commitment to Aucklanders is to continue strongly with that focus on financial efficiencies,” Simpson said. “Given the costs of operating CRL that we are expecting, it is vitally vital we keep our focus on opportunities for revenue growth and continued savings.”
The proposed plan increases the city’s savings target by an additional $20 million for 2025/2026, bringing the total goal to $106 million.
Brown’s proposal prioritizes transport reform, including a restructuring of Auckland Transport into a Public Transport service provider, with other functions brought under council control. “We’re looking at transport investment that is cheaper and less annoying than currently under Auckland Transport,” Brown said. He emphasized the need for integrated land-use and transport planning to “transform Auckland,” and urged councillors to consider regional needs.
Beyond transport, Brown aims to deliver “smarter services and faster progress” focusing on better use of public spaces, notably the waterfront, and ensuring a “vibrant, clean, safe and welcoming city centre that is open for business.” He noted increased collaboration with the government, stating, ”we do places, they do people.”
A workshop to discuss the draft Mayoral Proposal for the Annual Plan 2026/2027 will be held this week, with public consultation scheduled for early next year.
