Mayor Tenby Powell, right, and deputy mayor Larry Baldock discuss the council's finances at a press conference last month. Photo / File
Mayor Tenby Powell, right, and deputy mayor Larry Baldock discuss the council's finances at a press conference last month. Photo / File
Tauranga City Council may revisit its proposed 12.6 per cent rates increase as the economic impact of the Covid-19 pandemic hits and the nation goes into a month-long lockdown.
The council agreed the draft increase last month but councillors are scheduled to discuss it again today, as some ratepayers clamourfor rates relief during the downturn.
And the city's mayor, a staunch advocate of the need for a significant rise, agrees a conversation about changing the proposal needs to happen.
"The world has changed," Tenby Powell said.
The council needed to be conscious of the pain residents and the business sector were feeling while also managing subregional growth in a challenging financial environment.
"It's about a balance between the severity of economic downturn as a consequence of Covid-19 and the fact we have got to take the city forward at the same time in some way.
"We are financially hamstrung by history and the funding model [for local government]."
Leaders of two Tauranga ratepayer groups agreed the rates rise needed to come down.
Philip Brown, chairman of the Papamoa Residents and Ratepayers Association, said about 300 people had signed the organisation's zero rate increase petition online.
Several petitioners described the proposed increase as "outrageous", urging the council to rein in its spending and avoid "wastage" and "unnecessary" projects, with recent comments also referencing the coronavirus impact.
VirusFacts2
Brown said the virus was more than enough reason for the council to take a rates increase "holiday" this year.
Phil Green, chairman of the Grace Road and Neighbourhood Residents Association, said he backed the need for a rates rise, but under the circumstances, it needed to come down.
"The Government is expecting everyone to do their piece."
He expected many council projects would wind up on hold, in any case.
The council could revisit the proposal in August ahead of the next financial quarter.
Councillor Steve Morris said the council needed to be nimble in its response to the Covid-19 crisis and follow central Government's lead, especially regarding putting more of the rates burden on commercial ratepayers.
ALERT_STAGES
"On one hand we have big Government offering a support package to businesses and on the hand we have little government coming along and taking it away again."
Councillor Andrew Hollis said he wanted to see a nil rates increase.
Deputy mayor Larry Baldock said the council was not due to finally set the rates until June so had time to make changes. It would understand the impact of the developing virus situation better by then.
"We have to wait and see what our part can be in it, but we're not all hard-hearted here, we know the pain people are going to go through but working that through with central Government is the key."
