Rates set to climb 3.8 per cent in Tauranga

Rates for Tauranga are proposed to lift by 3.8 per cent this year. PHOTO/FILE

Tauranga residents face being hit with a 3.8 per cent rates increase to help deal with the city's rapid growth.

Yesterday's rate increase proposal came at a meeting in which councillors were told that Tauranga City Council had exceeded a key financial target.

The increase would net the council $134 million while remaining within a council strategy to limit rate increases to no more than 4 per cent each year.

In other proposals, fees paid by Tauranga dog owners to help fund animal control would increase by 5 per cent, but impounding fees would not increase.

The extra money would help pay for improved service at the animal shelter and for staff to carry out more community education programmes.

Tenants of the council's pensioner villages were expected pay 6 per cent more rent, 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," said a report presented at the meeting.

Among other costs, 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.

The council confirmed last year's decision to spend $950,000 on Papamoa's new surf rescue base.

Also confirmed was last year's decision to contribute $765,000 to floodlights for cricket's Bay Oval.

Development impact fees would 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 a city-wide development fee needed to fund the Te Maunga sewage treatment plant.

The council signaled an 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 aim for a simple and coherent fee structure across on-street, off-street and parking buildings. Further proposals would go before the council next month.

The rate on Mount Maunganui businesses to fund Mount Mainstreet would increase by 10 per cent to collect a total of $163,000. Mainstreet's AGM agreed to spend an extra $15,000 on branding and additional administration and design costs.

Papamoa Unlimited's rate on businesses would double to $50,000 after its AGM agreed to spend more on marketing.

Decisions from the meeting will go into an Annual Plan's public consultation document to be approved by the council next month.

The council's 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.

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%)