Tauranga rates increase as planned

City councillors are going to the public with a planned and advertised 2.5 per cent rates increase this year, instead of a marginally lower amount.

The decision hinged on where to put $662,000 that emerged after the spending decision made during last week's Annual Plan deliberations process.


Council chewed through the risk reserve fund when flooding hit in 2005.

The option was a marginal discount on the 2.5 per cent rates rise, or to place it in the depleted risk management reserve fund.

The risk reserve is the council's emergency kitty, and is topped up by $1.258 million every year. The balance on June 30, 2015, was $3.067 million dropping to an expected $1.925 million this June 30 because of a $2.4 million transfer to leaky homes payments.

The intention is to build the reserve to a proposed $17.3 million, to cover uninsured events like flooding and earthquakes.

The council relied on the risk reserve following the 2005 floods, says Mayor Stuart Crosby.

Mayor Stuart Crosby says the fund in 2005 was chewed through ‘in a flash' following the floods.

'A risk reserve is just that, you don't know what is around the corner,” says Stuart. 'You are going to need it, the trouble is you don't know when.”

He says the choice for councillors was reducing the rates by a half a per cent – or going to the community with the increase planned on and debated over during the submissions process.

The decision was carried seven/four.

In addition to allocating $662,000 to the risk reserve fund, the council will also consider further funding of risk reserve through upcoming Annual and Long Term Plans.

The 2016/17 budget as it stands after deliberations, and subject to final reconciliation, translates to a 2.5 per cent rates increases for residential ratepayers, consistent with both the Long Term Plan and the draft Annual Plan, and net debt at $391m, $19m lower than budgeted through the LTP and $3m lower than the draft Annual Plan.

Council approved all proposals as presented through the draft Annual Plan, with the exception of funding for City Events which was increased by $340,000 instead of the proposed $471,000.

Additional funding of up to $33,000 is granted to extend library opening hours in Mount Maunganui, funding for Owens Park drainage which was postponed to 2018 following staff recommendation, and recommended changes to the implementation of the draft Development Contributions Policy.

In parallel, Council considered requests submitted by the community through consultation and agreed to allocate additional financial support to a range of organisations and projects.

This includes $64,340 for community organisations plus $249,750 for the Papamoa Community Surf Rescue Base Trust; $249,280 new expenditure and $147,150 brought forward from 2019 for various parks and reserves projects in 2016/17; and $915,000 funding over two years towards the Bay Oval floodlighting project, conditional on equal investment from the private sector.

Tauranga City Elected Members have now completed deliberations on the proposals for next year's budget.

The deliberations deliver the Annual Plan 2016/17 within proposed rates increases and lower debt than budgeted.

'Our decisions were underpinned by our overarching objective to successfully manage Tauranga's growth into the future, and by our financial strategy as we set it through the Long Term Plan 2015-2025,” says Stuart.

'This strategy caps rates increases, net debt levels and our debt to revenue ratio. I'm glad we could deliver our next budget well within these limits.”

An overview of decisions is available on Council's website. Decisions will be made final once the Annual Plan 2016/17 is adopted, on Monday, June 27.

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12 comments

Overit

Posted on 31-05-2016 13:16 | By overit

No. This option is too easy, try some fiscal balancing. Say no to all these requests for money, choose wisely.


No

Posted on 31-05-2016 13:19 | By Captain Sensible

My answer is the same as if I went to my boss asking for a pay rise because I overspent on my credit card. N-O !!!


Wow!

Posted on 31-05-2016 14:29 | By Astoreth

2.5% increase That's twenty-five times the current inflation rate! Think carefully next election, people


Pruning

Posted on 31-05-2016 14:41 | By tabatha

We have heard about the increase in City Hall of workers, I believe in some cases there is a manager to manage a a sub manager who manages the workers. The numbers were reduced and under the present CEO I believe the number has grown. Time for a look in the workers etc.


Hmmmm

Posted on 31-05-2016 15:00 | By How about this view!

What options do we have as ratepayers? We can say NO and oppose ill-advised public spending until we're blue in the face, but these bozos will force payment under threat of prosecution. I would happily withhold my rates demands if it would FORCE CHANGE in the thinking of our out-of-touch rates thieves.


Captain sensible

Posted on 31-05-2016 15:46 | By Kenworthlogger

Well put mate. Totally agree with you. Why can council not work it out too... Clean sweep i say at election time. None of the councillors have learnt from last time.


What,s New

Posted on 31-05-2016 17:02 | By Taffy

We have found a small surplus so we will go to the public but we already know what we will do anyway as we don,t take any notice of feedback.We are incapable of hanging onto any money we need to spend spend spend. Suggestion try investing it as you will need it to cover blow outs on your recent proposals ie Bay Oval lights and Papamoa Surf Club ,new council premises,water front steps,and of course not forgeting the museum I see has raised it,s ugly head again.


ID

Posted on 31-05-2016 19:01 | By Capt_Kaveman

like to see 0% then they will be doing their job, look what happen with the rip off flood levee


Noddy land is alive?

Posted on 31-05-2016 23:24 | By Crash test dummies

In Tauranga and at TCC, it is obviously an election year this year with the massive amount of handouts all over the place, especially in the Mount/Papamoa areas. There must be something special with those wee fingers pointing in the air on such a regular basis. The bit they are not telling you is that all will blow out next year, at least according to their plan, their budget wait for it its gunna hit hard ...


ratepayer

Posted on 01-06-2016 07:17 | By rosscoo

most of us ratepayers are workers and always get left in cold come budget day for taxcuts, but yet councils want to bleed us for more. Winz minister stuffed up cut her salary for benefit blunder. government talk about wanting to make it easier to get into your own home but it been able to afford to keep it long term.


A no brainer

Posted on 01-06-2016 08:46 | By nerak

I


Election year

Posted on 01-06-2016 10:27 | By Crash test dummies

This is the year that all the spending happens, that the rates stay the same of course, that eaves one place for the spending, increased debt, its coming, a bulge next year to record levels


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