Tauranga City Council commissioners and staff. Photo / George Novak
Tauranga City Council commissioners and staff. Photo / George Novak
Rates are set to rise 22 per cent on average in Tauranga, with commercial property owners picking up most of the increase.
Other big decisions after less than two days of deliberations on Tauranga City Council's Long Term Plan 2021-31 included bringing forward the Pāpāmoa East Interchange to be doneby 2024, confirming a $45 million overhaul of the Memorial Park aquatic centre, and money to investigate the potential for a cultural centre at Gate Pa Reserve.
A controversial hike to development contributions was changed.
Instead of arriving in one big hit, the introduction of the $18,000 fee hike will be spread over two instalments - $7500 from August and another $10,500 from February.
The council has said the contributions were needed for vital infrastructure, including futureproofing the city's water supply infrastructure for 30 years. If the cost did not go on development contributions, it would fall on rates.
The hike outraged developers and would-be home builder Abhishek Mukherjee went public with his fears he would have to sell his land because he would no longer be able to afford his build.
Mukherjee said yesterday the revised staggered increase was "definitely not a favourable outcome".
"$7500 is still quite a bit for us – I was expecting they will delay the process ... I'd have to talk to my builder and see if that's possible or not."
The council also resolved to consider exceptions or reductions in exceptional circumstances on a case-by-case basis - an option Mukherjee said he would "definitely" pursue.
The commissioners signed off on the rates rises as drafted for community consultation.
On average, homeowners will pay an extra 15 per cent in 2021-22, including the cost of the new kerbside waste service that starts next week.
Commercial property owners would see an average 33 per cent increase, thanks in part to the commissioners' decision to increase the commercial differential - what commercial ratepayers pay in comparison to residential - from 1.2 to 1.6.
The council has said this brings Tauranga more in line with other cities and that it will also look at bringing in commercial rating categories (such as the CBD or port and industry) to "better reflect affordability and benefit profiles".
The plan forecast further rises for the next two years of 14 per cent then 8 per cent for residential, and 13 per cent and 8 per cent for commercial ratepayers.
Over three years the total would be 37 per cent residential, and 54 per cent commercial.
Commission chairwoman Anne Tolley said the four commissioners heard hundreds of submissions and she felt "comfortable that a significant number of the population were positive about the changes as long as we deliver".
"I believe the [plan] we have developed as a result of the community's feedback represents a significant step forward for the people of Tauranga."
However, there was opposition to the rises.
Pāpāmoa Residents and Ratepayers Association chairman Philip Brown said a 15 per cent increase to residential rates was too high.
"I think rates rises should be limited to inflation plus 5 per cent maximum. If it doesn't bring in enough revenue then they need to look at what they're spending it on."
Priority One chief executive Nigel Tutt said the commissioners consulted "really well" with the business community, in his view.
"The business community were widely in support of the council making more progress for the city and they understand rates rises come as a result as that," Tutt said.
"They haven't seen [progress] in the city for a long period of time and they were very supportive of the work the commissioners were doing."
Commercial property leader Scott Adams, managing director of Carrus, said he made a submission about rate increases.
"I said to [the commissioners] they need to be aware there are still a lot of retail, office and industrial tenants in this city who are still coming back from the Covid-19 hangover and putting a rates increase is going to hurt them.
"They still need more time to recover in my view."
Nigel Tutt, chief executive of Priority One. Photo / George Novak
Community facilities will get a boost in funding from the Long Term Plan.
Tolley said investment in the community in arts, culture and sport was the most common theme of submissions.
"That's understandable because that's what affects people on a day-to-day basis."
In the meeting, she said if there was a significant lift in community facilities for current residents while still providing for enabling growth, "we've done a pretty good job for the city".
Other new funding included an extra $100,000 for The Incubator, with the provision to increase funding by $110,000 in years two and three of the plan subject to performance.
Tauranga City Council commissioners and staff. Photo / George Novak
Former councillor Heidi Hughes' Wednesday Challenge - an incentive for people to use an alternative mode of transport once per week - will receive funding of $146,000 provided other funding partners also agree to chip in.
"Everyone talks about the changes that are happening to our climate ... but they're not quite sure what they can do individually," Tolley said.
"It's very clear we're going to need some interventions to make people start thinking differently. And I include myself in that."
The commissioners agreed to put $125,000 towards the next step in the investigation of a cultural centre at Gate Pa Reserve.
Commissioner Shadrach Rolleston said it was a significant site due to the Battle of Gate Pa in 1864.
"It was one of the only battle sites in which Māori had a victory."
Rolleston wanted the culture centre to "bring these stories to life so they're visible in the city ... because a lot of that stuff is invisible at the moment".
The council also put $100,000 towards enabling a temporary exhibition of parts of the city's Heritage Collection.
A $500,000 city centre development incentive fund with a particular focus on residential development was created.
A $100,000 fund for the film and media sector was established, which would be administered by Priority One.
