Tauranga's roading burden set to ease

Tauranga City Council transportation manager Martin Parkes has welcomed a road funding boost. Photo / File

Higher roading subsidies for Tauranga will see the city's rates burden drop by about $2 million over the next three years.

A far-reaching review of how the Government funds local authority roading costs has seen Tauranga City Council emerge as one of the winners, with its present 43 per cent subsidy ultimately rising to 51 per cent in nine years.

New Zealand Transport Agency's funding of the council's routine roading maintenance and operating costs will jump to 47 per cent next year, and then climb by 1 per cent a year for the next two years.

Although the council was unable to project how much it would save over the next three years, because it had not finalised its roading programme, an estimate based on the $34.2 million spent for the previous three years indicated potential savings to ratepayers of about $1.7 million for 2015-18.

The council's transportation manager Martin Parkes welcomed the funding boost, saying it was part of the move to a single flat subsidy. The ultimate subsidy of 51 per cent would also apply to capital works.

"It will mean less rates are required for roading," he said.

Operating costs included the council staff and consultants needed to manage the roading network, including traffic lights.

The new regime was the result of nearly two years looking at ways to simplify funding.

Agency chief executive Geoff Dangerfield said the changes were aimed at better matching funding assistance with each region's ability to pay.

Western Bay of Plenty transportation subsidy changes
• Tauranga City Council: Up 5 per cent (to 51 per cent)
• Western Bay District Council: Up 3 per cent (to 51 per cent)
• Bay of Plenty Regional Council: No change (51 per cent)