Tauranga City Council Commissioners say they are acutely aware of the cost of living increases people are facing.

This is in response to the Tauranga Ratepayers' Alliance calling for acknowledgement that there is a cost of living crisis in the city.

Spokesperson Michael O'Neill says the commission needs to alter their proposed rates increase this year to reflect the cost of living crisis and to help business recover from the Covid-19 pandemic.

In a statement released this week, the Alliance suggested the commission reduce the 13.7 per cent total rates increase proposed this year in their 2021-2031 Long Term Plan Amendment.

In response, commission chair Anne Tolley says they are 'acutely aware of the cost of living increases people are facing”.

She says the situation emphasises the importance of a fairer way of allocating rates and growth-related costs.

'Which is why we're proposing changes in the commercial rate differential and transport targeted rate differential, plus increases in development contributions and some user fees and charges.”

The outcome of those proposals would see residential rates increase by between 5.6 per cent and 9.8 per cent in 2022/23 and the fact that the rate of inflation is expected to reach 7 per cent or more puts that level of increase into perspective.

'We all know that Tauranga has significant issues with housing and inadequate community facilities and infrastructure,” says Tolley.

'Inaction will only make those problems worse, at a cost to all residents and the wider region.

'The message we're hearing is that most people want us to get on with the job of making Tauranga a great place to live, work, play and visit and we look forward to considering all of the feedback provided through the long-term plan amendment and draft annual plan consultation process.”

O'Neill wants the commissioners to 'show leadership and understanding for the high cost of living of that ratepayers are facing is by cutting back their own expenses”.

"Anne Tolley claimed nearly $358,200 in fees over the last 12 months and she claimed $35,565 in expenses on top. Read more here.

'This is twice as much as we were told it would cost when she was appointed. We are calling on Commissioners to forego their expense claims, totalling $71,000 because they are well remunerated and it would show some empathy for the costs they are adding to resident's budgets.”

Tolley says the council's personnel costs are similar to, or less than other metropolitan councils.

'To attract and retain the high-calibre staff required to deliver the infrastructure catch-up the city needs, we have to meet market rates and that will require an increase in our salaries budget.”