The rates increase was signalled during Long-Term Plan deliberations on Monday. Photo / Mead Norton
The rates increase was signalled during Long-Term Plan deliberations on Monday. Photo / Mead Norton
Ratepayers are facing higher rates than initially proposed by Tauranga City Council after the ditching of planned Three Waters reforms.
But homeowners are being told their rise will be less steep thanks to a new industrial rating category.
The draft overall average rates will be 13.1 per cent for the 2024/25 financial year, up from the 10.3 per cent proposed during consultation on the 2024-34 Long-Term Plan (LTP).
Including the Transport System Plan Infrastructure Funding and Financing (IFF) Levy, the average rate rise would be 15.8 per cent.
Chief financial officer Paul Davidson said this was the average for all rates, including commercial, so residential rates would be lower. The median residential rates rise would be 8.9 per cent, up from 6.7 per cent consulted on in the LTP.
That did not include the IFF levy of 2.2 per cent.
Including the levy, the total median rates rise for residential ratepayers would be 11.1 per cent, up from 8.8 per cent.
An IFF levy is a loan from Crown infrastructure partners, paid back through a targeted rate over 30 years.
Commission chairwoman Anne Tolley said Tauranga was “a lot better off” than many other councils that were talking about a 20 per cent rates increase.
The commission approved a new industrial rating category. This meant residential rates were about 3 per cent lower than if the category wasn’t created.
Commission chair Anne Tolley. Photo / John Borren, SunLive
The rates increase was driven by the new Government’s scrapping of Three Waters reforms. This meant the council needed to provide $1.8 billion for water services investment from 2026. Under the previous Government, wastewater, stormwater and drinking water would have been managed by regional entities, rather than the council.
These changes would have taken place from July 1, 2026, before the coalition Government repealed the Water Services Act in February.
Cameron Rd Stage 2 pushed out
Along with rate increases, key council projects have been pushed out.
It would include cycle lanes and safety improvements. The Ōtūmoetai and Mount multi-modal projects have also been moved towards the end of the plan’s decade.
”Since taking on our roles, we have been playing catch-up on years of underinvestment in the city, however, we are also mindful that the city has a threshold for disruption linked to infrastructure projects,” Tolley said in a statement.
”What we’ve tried to do here is create a balance, so that the city doesn’t fall further behind, but that key works are staggered.“
”However, tackling Tauranga’s congestion issues is more important than ever, so the Turret Rd/15th Ave project, which could really ease pressure in that part of town, has been moved to earlier in the LTP.”
The project would add high-occupancy vehicle/bus priority lanes to 15th Ave, add a clip-on cycle lane to the Turret Rd Bridge and other safety improvements.
The rate could change after being audited and will be confirmed when the council adopts the Long-Term Plan on April 22.
- LDR is local body journalism co-funded by RNZ and NZ On Air.
