Ratepayers in Tauranga will be paying more from July 1, as Tauranga City, Western Bay District and Bay of Plenty Regional Council increase their rates. Photo / File
Ratepayers in Tauranga will be paying more from July 1, as Tauranga City, Western Bay District and Bay of Plenty Regional Council increase their rates. Photo / File
People already paying some of the highest rates in New Zealand will be paying even more come July 1.
All three councils in the Western Bay of Plenty subregion signed off their budgets for the next financial year this week, including increases to average residential rates across the board -4.1 per cent for Tauranga City Council, 3.1 per cent for the Western Bay of Plenty District Council and 8.4 per cent for the Bay of Plenty Regional Council.
Tauranga Mayor Greg Brownless. Photo / File
According to Taxpayers' Union research, the Western Bay had the highest average residential rates in New Zealand last year, while Tauranga topped the metropolitan councils.
Tauranga's council voted yesterday to take on average another $100 a year from homeowners' pockets next year.
The council unanimously approved a 3.9 per cent average residential rates rise, plus 0.4 per cent to cover a full year of the glass collection service introduced halfway through last year.
The increase was half the 7.5 per cent predicted when the council signed off its 10-year plan last year.
Some councillors saw that halving as a win for ratepayers, while others saw it as an example of the city failing to invest in the increasing needs of a growing city.
Responding to calls for the council to look for other ways of funding projects, such as public/private partnerships, Tauranga Mayor Greg Brownless said he would "dearly love to" but had little faith it would help.
"Most alternative schemes still seem to rely on ratepayers as a backstop when something goes wrong."
Andrew Hollis, Bellevue resident and member of the Mount Maunganui Residents, Ratepayers and Retailers Association, said that while the increase was "not too bad" it would hit some harder than others.
Bellevue resident Andrew Hollis said places like the Mount would be hit hard by rates increases. File photo
Soaring property values in the Mount meant the increase on that suburb's burden would be greater than others.
"The Mount will again be asked to stump up more for Tauranga."
People on low or fixed incomes with high-value homes would also struggle, he said.
Matapihi Residents and Ratepayers Association chairman Greg Milne said Tauranga's increase was reasonable.
"They've capped projects to keep rates in check which they promised they would do."
The regional council rates increase of 8.4 per cent was higher than the 6.5 per cent consulted on.
The increase was tied to a forecast deficit of $6.3 million - $3.5m higher than proposed in the regional council's draft budget for 2019/20.
The council did not respond by deadline to a request for more detail about the increase and deficit.
Corporate performance manager Mat Taylor said in a report to yesterday's meeting the increase was partly driven by public transport cost increases.
Western Bay of Plenty Mayor Garry Webber. Photo / File
Taylor also said the budget, including the deficit, was "unbalanced" mainly due to the use of reserves to fund third-party infrastructure grants.
Western Bay Mayor Garry Webber described his council's 3.1 per cent increase, struck on Wednesday, as "minimal".
Webber said the council was always mindful of people on fixed incomes who struggled with increases.
"I have been urging other mayors to press Central Government for a higher rates rebate to help people who may struggle to pay their rates."
Webber said the increase would help to pay for kerbside waste collection, rural drop-off depots, debt management, targeted rates for wastewater, stormwater and water services, targeted rates, KiwiCamp, a No 1 Rd walkway/cycleway and freedom camping management.
Te Puke No 1 Rd resident Lyn Govenlock said she was pleased there was money going towards a shared pathway because "at any one time there's always someone walking along that road".
"It's dangerous. It's a death waiting to happen."
Govenlock said the rates increase was worth it if it helped to save lives and stop people walking on the rural road.
