This is after many local businesses have cut costs, sharpened their prices, invested money to be Covid-19 compliant and committed to new loans to keep their business open by putting up their personal assets as security.
Most economists say we're yet to reach the bottom of our economic downturn. This means there will likely be a lot of uncertainty from buyers and consumers as the months go on.
There is no disputing that the Western Bay region faces many growth-related problems. These issues include transport congestion, and shortages for water and housing.
In 2018 the council decided, with the community, to increase the commercial rates proportion gradually over the next few years to help address these regional problems.
It is frustrating then to see the council stretch beyond what was agreed to now also include lowering the uniform annual general charge more than planned in the 2018 Long-Term Plan. This UAGC is the same charge council puts on each property, meaning the rest of the rates are made up of a site's capital value. For many commercial properties, this means their rates will increase more than many residential properties.
Changes to any community's rating methods needs to be gradual, give everyone certainty and setting the expectation. There also needs to be clear communication about how the revenue will be spent.
It is the wrong time to be proposing further changes to what was agreed with the community, especially when the business sector is already facing so many other costs.
Let's not forget that commercial ratepayers are most often residential ratepayers too.
As I have said before Covid-19, if you ask any rational business whether they would invest an extra few hundred dollars a year to have free-flowing traffic, better access for their customers, and more affordable housing choices for their staff, most would take that investment.
But the council needs to better articulate how the additional revenue will be invested.
The business community, let alone the wider community, needs to know the plan and have faith that the plan will be delivered on time and as promised.
This column highlights how the local government funding model is not working and is not aimed to be a beat-up on local government.
Infrastructure NZ has published some excellent research that shows how the local government funding system is, in my words, broken.
Numerous governments in recent history have commissioned inquiries, but other than Auckland's "super council" in 2010, nothing has been done.
The Chamber will be asking political parties for their views on the local infrastructure funding model in the lead-up to the general election – are they satisfied with the current broken model or are they open to carrying out local government reform?
• Matt Cowley is the chief executive of the Tauranga Chamber of Commerce.
