Tauranga’s median rates rise for residential properties is seven per cent after the commission signed off on the city’s long term plan.

This will be an extra $4.39 per week for median residential ratepayers from July 1, 2024.

The confirmed median rates rise is lower than the 11.1 per cent signalled during long-term plan deliberations in early March.

Tauranga City Council chief financial officer Paul Davidson said this was because of the impact of the 2023 property valuations approved by the Office of the Valuer General on March 27.

While the median rates rise is seven per cent, properties in the upper residential band will have a 15.3 per cent increase or an extra $28 per week.

Those in the low residential bracket will have a 9.6 per cent increase in rates, this will be an extra $3.68 a week.

The 2024-34 long term plan was adopted at a Tauranga City Council meeting on Monday.

Commissioner Stephen Selwood said the commission worked really hard to get a fairer balance of the rates allocation. Photo: John Borren/SunLive.

Commissioner Stephen Selwood says there aren’t many other councils around the country that can emulate the sevem per cent residential rates rise.

The city’s average rates rise, which includes residential, commercial and industrial properties, is 15.9 per cent.

The lower residential rates increase “reflects the shift in rates away from the residential ratepayer to the commercial business sector”, says Selwood.

The commission has worked really hard to get a fairer balance of the rates allocation, he says.

Commissioners introduced an industrial rating category this year, meaning industrial properties pay a larger share of rates than before. This reduced the residential rate by around three per cent.

Earlier in their term the commission increased the commercial differential - a ratio for how much more commercial ratepayers pay compared to residential.

Before the commission’s appointment the 2020 commercial differential was 1.2, so commercial properties paid $1.20 in rates for every dollar residential properties paid.

The commission increased this yearly and the commercial differential for 2024 is 2.1.

For commercial ratepayers, the median increase, is 10.7 per cent and for industrial ratepayers the median increase 37.7per cent.

The commercial and industrial rates increases don’t include the transport system plan Infrastructure Funding and Financing Levy.

Commission chair Anne Tolley said Tauranga was in “dire straits” prior to the commission’s appointment. Photo: Alisha Evans/ SunLive.

The median TSP IFF levy increase is 5.2 per cent for commercial properties and 6.1 per cent for industrial properties.

The average rates rise of 15.9 per cent and median residential rates increase of 7 per cent include the levy.

An IFF levy is a loan from crown infrastructure partners, and will be paid back through a targeted rate over 30 years.

Commission chair Anne Tolley says Tauranga was in “dire straits” prior to the commission’s appointment.

“There was no rating structure in place that relieved the burden on residents. In fact, the rates put all the burden on the residential ratepayer.

“The city was simply overwhelmed by the massive growth that had happened over a very short period of time.”

Tauranga’s rates increases will come into effect on July 1.

LDR is local body journalism co-funded by RNZ and NZ On Air.