Three months ago the council contacted hundreds of churches telling them to ignore big rates increases, which came into effect this financial year without political input.

One church in central Auckland, which asked not to be named, received an increase of 6900 percent, from $400 to $28,000.

The council issued new rates bills, without consultation, to the churches earlier this month, claiming many were using all or parts of their property for business, not religious purposes.

But the acting chair of the council's Finance and Performance Committee, and Orakei ward councillor, Desley Simpson, said churches did not have to pay the new rates bills until councillors and the mayor could reach an agreement.

A spokesperson for the Catholic Diocese of Auckland, Lyndsay Freer, said if the church had to pay the new rates bills it would have a "huge impact."

"It's a lot of money we're talking about and, for us, there's a considerable lack of clarity.

"We understand that the rates are for premises on our properties that are not used specifically for the purposes of worship, but we do have many buildings and facilities that are used for pastoral and not-for-profit work.

"There really does need to be clarification around what would qualify and what wouldn't."

The Anglican Church says it was disappointed by the bills, and hopes to work things out with the council.

"Our ministry units and their facilities are valuable resources to our communities, and this decision would have a detrimental effect by inhibiting the services our ministry units could provide," Bishop Ross Bay from the Anglican Diocese of Auckland told NZME.

"Auckland Council has responded well to us about this matter and we feel that we will be able to resolve it in a positive way."

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• newshub.co.nz
• radionz.co.nz
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Manji was a member of the working group that prepared a discussion paper released last week by Local Government New Zealand (LGNZ).

The paper considers alternative funding options for councils as many are finding it increasingly difficult to pay for infrastructure and services amid population decline and growing costs.

At present Land used for religious worship, religious education or for charitable purposes are all classed as non-rateable under existing legislation.

Councils can levy targeted rates for water, sewerage and refuse collection but not any other type of rate.

Crown land used for conservation and recreation, not-for-profit early childhood centres, schools and tertiary institutions and land owned or used by district health boards are also exempt, along with land used for transport infrastructure, including roads, wharves, railways and airports and some Maori land.

The LGNZ Funding Review report said there was a "lack of any rational basis for the current exemptions".

"Central government sets the exemptions but local communities pay for them, as the rates burden in each area is spread over a narrower base" the report said.

Christchurch Methodist Mission executive director Jill Hawkey said charities and churches would have to either raise the additional money or cut services if they had to pay rates.

"It would have a huge impact. I really encourage the council to recognise the community services provided by churches and charitable organisations."

Christchurch Anglican Church spokesman Jayson Rhodes said churches, which were also meeting places for various community groups, were hit hard in the quakes and to start charging rates now would have a big effect.

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• The Press
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