Commercial business in Tauranga are facing a potential 22 per cent rates increase.

Tauranga City Council's commissioners have signalled that a bigger proportion of the city's rates burden will be on commercial property owners.

The matter was discussed at a meeting in council chambers on Monday.

Draft rate increase figures show a proposed average increase of 22 per cent in the next financial year, following by a 12 per cent and nine per cent rise in subsequent years.

During Monday's meeting about the council's Long Term Plan, commissioners heard Tauranga's population has grown by an average of 25,000 people every 10 years since 1980, and that this growth was expected to continue for at least the next two decades.

Meanwhile, the city has fallen behind in its infrastructure investments, creating problems such as traffic congestion, a lack of quality community facilities and a housing shortage.

Commission chair Anne Tolley says the magnitude of the challenge is clear.

'Tauranga desperately needs investment in its infrastructure and community facilities. We have an opportunity to build a city that not only meets the needs of our citizens now, but also for the future.”

Alarmed by the news of the commercial rate increase proposal, The Taxpayers' Union says it is committing to creating a Tauranga Ratepayers' Alliance.

'The Commissioners are carefully using the commercial ratepayer differential to hide what is likely to be a New Zealand first for the highest rate hike in the country,” says Taxpayers' Union Executive Director Jordan Williams.

'For those on fixed incomes, hiking rates by a third within two years is totally unjustifiable.
'Ms Tolley appears to lack an understanding of her role. She is supposed to steady the ship, not ram through New Zealand's largest-ever rate hikes.”
'The Commissioners need to be called out on the continued claims that Tauranga ratepayers have it cheap. Tauranga rates are already among the highest in the country.

'A city-wide Tauranga Ratepayers' Alliance is overdue.”

The long-term plan will go out for public consultation on May 7.

LONG-TERM PLAN TIMELINE

March 15: Decisions made on contents, funding and financing

March 29: Adopt draft documents for provision to audit

April: Audit processes

May 3: Adopt consultation document and all supporting documentation

May 7 to June 7: Consultation period

Mid-June: Hearings

Late-June: Deliberations

Week starting July 26: Adoption of final LTP