Tauranga City Council meets to start thrashing out a long-term plan. Photo / George Novak
Tauranga City Council meets to start thrashing out a long-term plan. Photo / George Novak
Double-digit rates rises will not improve congestion or tame rising house prices across Tauranga, a council meeting has heard.
That reality check was emphasised as the Tauranga City Council met today to work on drafting its budget and work plan for the next 10 years - the long-term plan 2021-31.
The council has forecast significant rates rises for the next three years, with a starting point approaching 30 per cent next year and potentially exceeding 40 per cent over a three-year period.
The first-year includes a 6.5 per cent rise for the new kerbside rubbish and recycling service and 2 to 3 per cent to reverse temporary savings made in response to Covid-19.
This was one of four scenarios for the plan staff presented to the council - two with less spending and fewer projects and one with more.
Council strategy and growth manager Christine Jones said the first two would likely see the council fail to meet its legislated obligations to meet the needs of the community, while the top-level option likely would not meet financial prudence requirements.
Tauranga City Council strategy and growth general manager Christine Jones. Photo / George Novak
For each scenario, staff tracked the likely impact on four factors - land supply for housing and business, transport movement, community amenities and growth.
In all scenarios, the news for congestion was not great.
"In terms of transport movement, the likelihood is movement around the city is not going to be free and easy, it's going to be difficult," Jones said.
It would "increase markedly" in some areas of the city no matter the rates, as the population continued to grow.
The lowest-spending scenarios would see minimal or moderate investments to make other forms of transport more appealing, and little to nothing done to plan improvements in transport movement in the longer term.
In the higher-spending scenarios, congestion in some areas would either stay the same or improve, and there would be investment in multi-modal transport and planning for improvements in the future.
It was the same for house prices. They would more or less continue to trend up no matter the level of investment from ratepayers, though perhaps less if more was spent opening up new areas of land for development.
In terms of community infrastructure, Jones said there had been little investment since Baywave in 2005 and the Greerton library, in spite of average growth of 3 per cent a year.
At the same time, significant amenities were nearing the end of their useful existence, including the Memorial Pool.
Council chief executive Marty Grenfell said: "Essentially what we are intending to do here is grow a city."
The main investments would be in waters, transportation and community amenity.
"Community amenity historically has been the last thing to be invested in."
Marty Grenfell, chief executive of Tauranga City Council, with acting mayor Tina Salisbury. Photo / George Novak
Councillor John Robson asked whether growing the city was being driven by central government edicts or what the community wanted. Grenfell said it was both.
Debate on the draft long-term plan was expected to continue on Tuesday, then pause over the holiday break and resume in February.
It's unclear whether the elected council will still be in place by then, or whether they would have been replaced by a commission, with Local Government Minister Nanaia Mahuta yet to make her final decision.
The council has until Friday to respond to her commission proposal.
Either way, the draft plan will go to the community for feedback before being signed off mid-year.
Note: Saturday's Bay of Plenty Times reported a rates rise starting point of 18-20 per cent for next year - including 9.5 per cent for kerbside collections and to reverse temporary Covid-19 savings - and 30 to 40 per cent over a three-year period.
In Monday's council meeting it was clarified the 9.5 per cent is on top of the 18 to 20 per cent, leading to a total forecast rise next year approaching 30 per cent and potentially exceeding 40 per cent total over three years.
