Local elections 2019: How Tauranga mayoral candidates would tackle rates and debt

Rates. Even ratepayers who take a bare minimum of interest in council affairs can't help but pay attention when their rates bill arrives. The Bay of Plenty Times asked Tauranga's mayoral candidates about their goals for rates in their first term, if elected, and how they would approach managing the council's debt.

Inflation plus 2 per cent.

That is the rates increase cap some Tauranga mayoral candidates - those willing to put a number on their goal, at least - are promising to strive for if elected.

But based on forecast rates increases, they will have to get their scissors out.

The council's 10-year budget forecasts average residential rates increases over the next three years of 7.5 per cent, 11 per cent and 11.5 per cent.

A portion of those increases (2.8 per cent in 2021 and 4.6 per cent in 2022) is the introduction of a council-run kerbside rubbish collection service.

It's a service model candidate Murray Guy - who promised some of the most drastic rates action of the 10 mayoral candidates - said was "seriously flawed", preferring the old user-pays model.

He also promised a "rates freeze" in his first year and the aforementioned cap thereafter, plus a cap on debt.

Other candidates backing the rates increase cap were mayor Greg Brownless and deputy mayor Kelvin Clout (excluding rubbish/recycling service increases), while Les Wallen took it a step further by promising to keep rates increases to inflation.

When it came to central government, Brownless promised to say no to attempts to push responsibilities and costs on to councils.

Brownless said ratepayers were funding and underwriting the cost of growth infrastructure until development contributions were paid.

He, along with Guy and Andrew Hollis, mentioned Government efforts to ease the burden growth councils faced to fund infrastructure.

This was also a strategy for helping to manage debt, Brownless said.

The idea of public-private partnerships was highlighted by Guy, Clout and Tenby Powell.

Guy and Clout mentioned it in the context of facility and amenity projects.

Powell said having a more open framework for such partnerships and investments was a priority. Creating a high-performing and more efficient council was his first priority.

Several candidates had council projects in their sights for savings.

Powell, Hollis, Jos Nagels and Wallen each said the council needed to stop wasting money on unwanted or unnecessary projects.

Wallen wanted more fixed-price contracts to "eliminate cost overruns".

Brownless said "ridiculous" project costs such as the Mount base track needed reigning in.

Clout said he would instruct the council's chief executive to prioritise total project cost and local contractors and consultants in procurement decisions.

He would also ask the chief executive to make "organisational efficiencies".

Staff-related costs were another popular target for efficiency-seeking candidates.

Guy said he would address staffing numbers, excessive remuneration and employee benefits.

Wallen wanted to look at internal processes including labour cost cuts and Nagels called for more in-house expertise and fewer consultants.

Hollis said "rationalising consultants and contractors" and an "open" approach to projects could help trim rates.

Clout said he was willing to look at gradually reducing the Uniform Annual Charge - portion of the rates that is the same for all properties - "which will benefit owners of low-value properties".

He would also look at targeted rates, user fees and charges and increasing the commercial rates differential.

In his experience as a business owner, the rates bill was one of the "smallest of expenses". He would "gladly pay a bit more for increased benefits".

Wallen wanted to look at council assets and sell any found to be "superfluous".

*Mayoral candidates John Robson, RangiMarie Kingi and Chris Stokes did not respond to these questions by the given deadline.

Matt Cowley: Rates freeze may hold city back

The Bay of Plenty Times asked Tauranga Chamber of Commerce chief executive Matt Cowley - a former Tauranga City Councillor - for his view on some themes of candidates' responses on rates.

Cowley said CPI plus 2 per cent was a realistic goal but a rates freeze was not, in his opinion, and could even slow progress in a city that needed to keep moving forward to keep up with its growth.

The main thing with selling a rates increase was the "value proposition", he said.

If the council wanted to ask for more money then voters - residential and commercial alike - wanted to know the council had a solid, well-prioritised plan and would spend the money well.

If commercial ratepayers were asked to pay more, then they would want tangible action on, for example, the traffic congestion causing productivity losses across the city.