Tauranga's rapid growth has pushed this year's rates increase to a proposed 3.8 per cent, resulting in the council exceeding a key financial target.
The projected rate take of $134 million exceeded the council's financial strategy's limit of $132 million, according to the Annual Plan budget update for 2017-18.
Councillors were told that the $2m difference was largely due to the demands of growth. A report to the meeting said that most of the $2m was the difference between old growth assumptions and the latest figure that Tauranga would grow by 3 per cent this year.
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However the 3.8 per cent increase after growth still remained within the council's overall financial strategy to limit rate increases to no more than 4 per cent.
The report said that staff had kept costs within budgets "as much as possible".
Debt was projected to reach $460m by June 30 next year - $33m more than projected in the 2015-25 long-term plan and $40m below the financial strategy's $500m debt limit.
In other decisions, fees payable by Tauranga dog owners to help fund animal control will increase by 5 per cent, or $4 to $6 depending on whether owners paid the early bird discounted fee of $82 or the full fee of $115. Impounding fees did not increase.
The increase was to cover costs associated with an increased level of service at the animal shelter and for staff to carry out more community education programmes.
Rents paid by tenants of the council's pensioner villages were proposed to increase by 6 per cent, or $7 to $10 a week depending on the village location and whether it was a single or double unit. "Our elder housing rental rates are well below the national average," the report said.
Infrastructure planning for the Te Tumu and Tauriko West urban growth areas will cost $2.6m over three years, with $1.6m to be spent this year. It was proposed to loan fund the cost to reduce the "direct impact" on rates.
The council confirmed last year's decision to pay $950,000 to become a cornerstone funder for Papamoa's new surf rescue base, with $88,000 going on this year's rates.
Financial summary for 2017-18 with current year's budget in brackets
Rates: $134m ($126m)
Other operating revenue: $71m ($64m)
Total operating revenue: $205m ($189m)
Operating expenditure: $214m ($190m)
Operating deficit: $9m ($1m)
Average rates increase after growth: 3.8% (2.2%)
Also confirmed was last year's decision to contribute $765,000 towards the $2.26m cost to install floodlights on cricket's Bay Oval. Tauranga's Civic Amenities Group has recently underwritten the rest of the cost until the Bay Oval Trust has fundraised $1.5m.
Development impact fees will increase by "nominal" amounts of less than 5 per cent. The exceptions were increases of between 5 per cent and 6.8 per cent for the city-wide development fee needed to fund additional costs associated with the Te Maunga sewage treatment plant.
The council also agreed to hold the discount on the West Bethlehem urban growth area which had been due to expire this year. The council set the local development contribution at $17,000 per lot in 2012/13 in order to encourage development, with an increase of 6.5 per cent for the next four years.
Instead of the discount expiring this year and the fee shooting up nearly 26 per cent, it was recommended that the increase would be 6.5 per cent until charges were reviewed next year. It meant that the discount per lot was worth nearly $14,000.
The council foreshadowed its intention to change parking charges in the CBD to "manage parking demand and occupancy rates and to encourage a change in travel habits".
It said it wanted to work towards a simple and coherent fee structure across on-street, off-street and parking buildings. Proposals to go out for consultation will be outlined to the council next month.
The targeted rate on Mount Maunganui downtown businesses to fund Mount Mainstreet will increase by 10 per cent in order to collect a total of $163,000. Mainstreet's AGM agreed to the extra $15,000 to develop its branding and meet additional administration and design costs.
Papamoa Unlimited's total targeted rate on businesses will double to $50,000 after its AGM agreed to increase the effectiveness of its marketing.
Decisions from the meeting will go into an Annual Plan's public consultation document to be approved by council next month.
Six per cent hike still cheap rent, says villager
Despite facing a six per cent increase in rent, pension villager Barry Hodder is not overly fazed.
"It's still cheap rent," the 70-year-old said yesterday. "I can't complain.
Mr Hodder said a one-bedroom place near shops would probably be $350 a week elsewhere in Tauranga, and he paid the equivalent of just $134 a week.
Mr Hodder said the 6 per cent increase, which would work out to be between $7-$10 for pensioners, was not excessive compared with rents pensioners paid for flats in other cities.
However, he said that other residents of his village, which is across the street from the Brookfield shops, might have a problem with the increase.
"You'll never get everyone happy."
Under the council's proposed increase single elder housing would go from $123-$142 per week to $130-$151 per week.
For a double house it would rise from $149-$167 to $158-$177.