Tauranga householders could benefit from a historic rates reduction of nearly 1 per cent next year thanks to a $3.7 million surplus in the rating account.
The good news was announced to the council yesterday and followed last week's decision to put about $3 million of the surplus into offsetting next year's rate increase.
Without the $3 million, the rates starting point for the council's 2013-14 annual plan process would have been a 2.9 per cent increase.
Figures prepared by the council's financial controller Paul Davidson showed that rates would go up by $2.6 million to reach nearly $105.4 million next year.
User fees and development charges were predicted to bring in a further $64.8 million of revenue - up nearly $2.1 million on the current financial year.