Tauranga City Commissioners Shadrach Rolleston, Bill Wasley, Stephen Selwood and Anne Tolley. Photo / NZME
Tauranga City Commissioners Shadrach Rolleston, Bill Wasley, Stephen Selwood and Anne Tolley. Photo / NZME
Residents want the Tauranga City Council to drastically cut projected spending to pare back the $4.75 billion needed to pay for a raft of proposed projects over the next decade, an informal survey of nearly 1500 people has found.
The council is to consider committing the city to $4.75b in capital expenditure (capex) as part of its draft Long-term Plan 2024-34. Hearings for the plan began on Monday.
Initially, the capital expenditure estimate included in the Long-term Plan was $2.2b. However, this rose to $4.75b when the projected costs associated with Three Waters Reforms were included after public consultation.
Capital expenditure refers to the amount of investment needed for projects and draws from debt, ratepayers, fees, grants and other sources. The council has a debt forecast of $3b.
Sustainable Bay of Plenty executive director Glen Crowther said he was concerned not all figures, such as the potential cost of Three Waters reforms, were included in the plan’s consultation. It was only after the consultation period the council added this, pushing up debt levels and ratepayers’ bills, he said.
“That means total ratepayer debt is now estimated to triple over the next decade, from $1b to $3b – massively higher than [what was] stated in the consultation documents,” Crowther said.
In response, the council’s lead commissioner said it abided by the law and its approach, including consultation, was approved by Audit NZ.
Crowther’s comments come after a survey with nearly 1500 respondents revealed “overwhelming” opposition to the council’s plans for the city and the potential debt level.
The survey was carried out by Sustainable Bay of Plenty, Pāpāmoa Residents and Ratepayers Association, and Mount Maunganui Residents, Ratepayers and Retailers Association ahead of the hearings.
In total, 95 per cent of respondents wanted the council to cut projects to keep debt down.
Crowther said he had not anticipated the survey’s “overwhelming” results.
“It did surprise me how extreme their views are. It’s not like we went out there to say we want results to reflect our views ... I feel like it’s a real significant result.”
Crowther said there was “no agenda” with the survey. The reason why Sustainable Bay of Plenty became involved was because it had been approached many times by people suggesting it do a survey, he said.
Sustainable Bay of Plenty's Glen Crowther. Photo / John Borren
The results reaffirmed the groups’ actions, he said.
“We are evidence-based, independent and apolitical ... we don’t think this plan is sustainable. Three billion worth of debt is not sustainable for Tauranga ratepayers in 10 years’ time.”
The groups could not afford to pay for a survey through an accredited research agency and welcomed the council to do its own survey if there were doubts about the results, he said.
“We know it’s [long-term plan] not a popularity contest but when you have numbers like this, of people opposed to what’s happening, that puts things into question.”
Commissioner chairwoman Anne Tolley at a Tauranga City Council meeting. Photo / Alex Cairns
In response, council commission chairwoman Anne Tolley said that while it complied with the law by not including Three Waters funding in the plan’s consultation, “we recognised government direction may change, so included in an appendix (4) information on the financial implications of [Three] Waters.
“This approach, and entire consultation document, was approved by Audit NZ,” Tolley said.
“In December, a letter from the Minister of Local Government provided clarity on the new direction for water services, noting government will introduce legislation in February. The enacted provisions clarify that the council can include water services material in the final plan, without re-consulting.
“Our proposed waters capex budget included in the revised LTP from year 3 would be about $2.2b, but as part of the review of the LTP budgets, options are being prepared to be considered in the deliberations phase. Our financial strategy contained within appendix 4, with waters in, had $4.75b.”
Council chief financial officer Paul Davidson said the $4.75b referred to the amount of investment needed for projects and was not the same as the $3b of debt referenced by Crowther.
“Debt is used to fund capex but it is not the only source of funding for capex. Other sources include development contributions, user fees, NZTA grants, etc. Hence not all the funding comes from ratepayers as funds also come from these other sources,” Davidson said.
6. 96 per cent do not support ongoing ratepayer funding of growth (via rates and “off the books” IFF levies) and want the government, developers and/or new residents to pay for all growth infrastructure.
9. 85 per cent do not support plans to close Ōtumoetai Pool.
10. 94 per cent support more transparency and putting the proposed Sulphur Point Marine Park development on hold until an elected council makes the final decision.
Kiri Gillespie is an assistant news director and a senior journalist for the Bay of Plenty Times and Rotorua Daily Post, specialising in local politics and city issues. She was a finalist for the Voyager Media Awards Regional Journalist of the Year in 2021.
