Tauranga City Council passes draft 12.6 per cent rates increase

Tauranga City Council voted on a rates rise. Photo / File

Tauranga City Council has passed a draft rates rise for next financial year of 12.6 per cent, equating to a median 8 per cent for homeowners - $4 a week.

The 6-5 decision comes after a morning of staff presentations about the city's financial situation, followed by passionate debates between elected members.

It also includes a small shift towards assigning a bigger proportion of the rates burden to the commercial sector, increasing the commercial differential from 1:2 to 1:3.

The decision allows for a capital programme of $244 million next year.

It also reduces the fixed portion of the rates - the uniform annual general charge - to 10 per cent from 20 per cent to lessen the impact of the rise on those with the lowest valued properties.

Three councillors - Steve Morris, John Robson and Bill Grainger - argued for not making a decision today, as the council did not have enough information.

The decision will go out for public consultation as part of the draft Annual Plan before councillors make a final decision and strike a rate for 2020-21.

Rates rise breakdown

Business as usual general rate: 3.9 per cent
Waters: 2.1 per cent
Growth and transport planning: 1.5 per cent
Debt management: 5 per cent
Other: 0.1 per cent.

How they voted

For: Deputy mayor Larry Baldock (mover), mayor Tenby Powell, councillors Kelvin Clout, Jako Abrie, Tina Salisbury, Heidi Hughes.

Against: Councillors Steve Morris, Dawn Kiddie, Andrew Hollis, Bill Grainger, John Robson.