"Historic budget" with 6.7 per cent rates hike

Taraunga City councillor Steve Morris

Tauranga City Council has unanimously voted for a 6.7 per cent rates increase.

At a council meeting today elected members voted to adopt the 2014/15 Draft Annual Plan - expected to shave $14m off net debt and cut $27m off capital expenditure.

The 6.7 per cent rates increase is made up of a 2 per cent rates rise and 4.7 per cent storm water levy, which will raise $5m annual to deal with the city's strom water woes.

The plan goes out for public consultation for a month from Thursday, March 20.

Councillor Steve Morris called it a historic budget.

In just a little time, four and a half months we have managed to turn the ship around, he said.

Community meetings are planned in each of the city's wards and in the CBD within the next month.