Tauranga ratepayers are facing an overall rates increase of 12 percent from July. Photo: Mead Norton
Tauranga ratepayers face a proposed overall rates rise of 12 percent from July, but the mayor says it could have been more than 20 percent if the council had not found savings.
Tauranga City Council elected members voted on Monday to approve the draft Annual Plan for community consultation, beginning 28 March.
The plan - which sets out budgets, rates and planned work for 2025/26 - is the first for the council, elected in July to replace government-appointed commissioners.
Mayor Mahé Drysdale told the meeting a lot of what was in the Annual Plan was already in motion and could not be changed.
When the council started work on the plan it was facing an overall rates increase of more than 20 percent, he said.
This was because the council wanted to "balance the books" and decided to fund $25 million in depreciation not included in the Long-Term Plan, he said.
Growth was not as strong as had been predicted, which meant the council needed to find $29m in savings to get to 12 percent, Drysdale said.
He said he was still unhappy with 12 percent and the council would try to find a further $6.7m in savings to reduce rates by 2.5 percent more by the time the Annual Plan was adopted in June.
Tauranga Mayor Mahé Drysdale. Photo: David Hall
Under the draft plan for consultation, a residential property worth $885,000 would pay about $394 (11.3 percent) more in rates for the year.
A commercial property valued at $1.23m would pay $1556 (17.7 percent) more in rates.
An industrial property valued at $2.3m would pay $2959 (16.8 percent) more in rates.
Deputy Mayor Jen Scoular said the community needed to be aware that the cost of running the city was $599m for the 2025/26 financial year.
"It's expensive to run the city because it's a complex beast."
She also asked that the total staff costs be included in the consultation documents.
"Let's be transparent, let's be upfront."
Councillor Hautapu Baker said he wanted to ensure the council engaged well with the community.
"In terms of general engagement approach or raising civic consciousness, in my mind, an annual plan process is one of the safest avenues to really get innovative with how we do that."
There were generations of Tauranga families disengaged from civic consciousness, Baker said.
He wanted Tauranga to have the highest voter participation in New Zealand at the 2028 election and the work for that started now, he said.
"We have a really choice opportunity to actually create generational change through the way that we approach and engage with our people."
During the consultation month, the council will hold 18 events where people can speak to councillors and staff about the Annual Plan.
Consultation on the Annual Plan will run from 28 March until 28 April.
Proposed residential rates rise
Estimated residential rates rises by property CV in the draft Annual Plan 2025/26:
- $355,000 CV - add $220.70 (10.1 percent)
- $715,000 CV - add $338.68 (11 percent)
- $885,000 CV - add $394.39 (11.3 percent)
- $1.12m CV - add $471.40 (11.6 percent)
- $3.929m CV - add $1391.96 (12.6 percent)
Source: Tauranga City Council
LDR is local body journalism co-funded by RNZ and NZ On Air.
