Rates for an average-value Tauranga home could increase by nearly $100 this year with hikes announced by two councils.

A city homeowner with property worth $500,000 faces a bill next year of about $2920, including GST, on rates levied by Tauranga City and Bay of Plenty Regional councils.

Read more: Bay of Plenty's $300 million spend-up

The regional council yesterday announced a proposed 6.6 per cent rates increase for the 2017-18 financial year. This translated to a median $23 increase for city ratepayers and $30 increase for Western Bay District ratepayers.


It comes on top of a proposed 3.8 per cent rates increase by the Tauranga City Council, or $76 for a residential property valued at $500,000.

This will push the amount levied on an average city property from $2439 to $2538, including water rates, with GST boosting the figure to $2920.

Both councils will consult with the public on their 2017-18 annual plans.

The $99 average rate increase did not faze the deputy chairman of the Papamoa Progressive Association, Ron Melville.

He said the increase was just over $8 a month or $1.90 a week.

"Given the growth of Tauranga, it is probably a conservative increase. In the scheme of things, I see it as reflecting the growth pains of the city."

The Bay of Plenty Times sought information on rates increases in the Western Bay of Plenty District, but a spokesman could not provide the information in time for this story.

He said the council was not consulting with residents on its 2017-18 Annual Plan because there were no major changes to budgets agreed earlier for the 2015-25 plan. It would allow more time to be spent preparing for next year's review of the long-term plan.

The regional council's proposed median rate for Tauranga of $250 comprised a general rate of $189 and targeted transport rate of $61 to help fund the city's public transport.

Its annual plan promised to work with the city council to fund Sulphur Point's Marine Precinct, help fund construction of the new downtown tertiary campus, increase the presence of maritime patrols in the harbour, and update the guiding management document for Tauranga Moana.

Main features of Bay of Plenty Regional Council's budget for 2017-18

- Targeted rates $16.36m
- Port of Tauranga dividends $23.85m
- General rates $23.4m
- Total operating revenue excluding rates $60.6m
- Total operating spending $124.4m
- Total capital expenditure $46.5m