Double digit rates hike for Tauranga residents

Homeowners with a capital value of $495,000 will pay $3.49 extra per week in rates. File photo/SunLive.

Tauranga residents will see a rates increase of 13.7 per cent this year, to help fund infrastructure and the Tauranga civic precinct.

The increase was adopted by the commissioners at a Tauranga City Council meeting today that finalised the annual plan and long-term plan amendment.

Commission chair Anne Tolley says they are making “great progress” with the community making sure they pay their fair share of rates.

Tolley says when commissioners started, the community was “quite resentful of growth and feeling they were bearing all of the costs of it”.

“We’re working towards ensuring most people are paying their fair share of rates.

“We are gradually getting there. We're not there completely, but this is making progress.”

Part of this “fair share” has involved raising the rates the commercial sector pay through increasing the differential, meaning the commercial sector will pay a larger portion of rates than residential property owners.

Development contributions have also increased in some areas of the city, and the commercial sector will pay a higher targeted transport rate.

Commercial ratepayers will pay $3.33 for every dollar a residential ratepayer does.

The rates increases are broken down into a weekly dollar amount for each residential bracket.

Homeowners with a capital value of $495,000 (low residential) will pay $3.49 extra per week, a capital value of $790,000 will see an increase of $4.18, a $980,000 capital value will attract a $4.82 increase.

The upper quartile owners with a value of $1.2 million will pay $4.62 more each week and high residential with a value in excess of $3.5 million will pay $8.11 extra a week.

A commercial property in the lower quartile with a value of $865,000 will pay $18.55 extra per week in rates.

The median commercial band will pay $30.21 more, upper quartile properties of $3.3 million will pay $61.50.

High commercial properties with a capital value of more than $41 million will see an increase of $715.82 each week.

Commissioner Shadrach Rolleston says they are mindful of rising costs and inflation, and it would be easy to “pull back”.

Rolleston says what is required, does need “significant investment”.

“I don't think we can push pause or hold back in terms of the investment.”

A Local Democracy Reporting investigation into the country’s 67 council’s rates show Tauranga’s residential rates increase is high compared to other cities in New Zealand.

Auckland’s proposed rates increase was 3.5 per cent, Hamilton 4.9 per cent and Wellington 8.9 per cent.

The highest proposed rates increase was Mackenzine District Council at 17.3 per cent.

The average rates increase was 6.73 per cent the lowest was the Chatham Islands Council with a 2.5 per cent increase.

The data is current as of May 2022.

An artist’s of impression of Te Manawataki o Te Papa. Image: Tauranga City Council/Supplied.

Green light for civic precinct

Adopting the amended long-term plan confirmed the build of the $304 million Tauranga Civic precinct.

Te Manawataki o Te Papa will occupy the area between Wharf Street and Hamilton Street. It includes a library, museum, civic whare (a venue for council and community meetings), an exhibition space and upgrading Baycourt Community and Arts Centre.

Masonic Park will also be upgraded and connections to the water will be improved through a waterfront reserve.

Commissioner Bill Wasley is “really delighted” by the investment in upgrading Dive Crescent and the waterfront reserve.

Ratepayers will be expected to pay $150 million toward the precinct, the balance will come from asset recycling and grants.

Tolley says when the commissioners arrived, the CBD was “actually in a bit of shambles”.

“It was quite sad for people who live here to see their centre city in such decay.”

She says the “massive $300 million project” has caused “huge excitement, optimism and confidence” in the city centre.

“So much so that we are seeing private enterprise now committing to about $1.2 billion in investment themselves.

“The role of city leaders is to create environments that people want to be in.”

-Public Interest Journalism funded through NZ On Air.

 




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18 Comments

Labour commissioners

Posted on 28-06-2022 14:58 | By Kancho

They are here to do this with the government blessings. And will do their masters biding so they will give away our water assets for a pityful low bribe to government bureaucractic control. The government attack on local interests local input and local democracy. Since when has this government shown an ability or delivery on their talk

Asset Rich and Cash Poor

Posted on 28-06-2022 14:06 | By WestieMum

That’s me. And likely many other residents of this city. Just because my house that I’ve worked hard for, and paid my mortgage, and now for reasons out of my control is worth so much more than 2 years ago, I have to pay more for my rates. So top that off with I now have to pay higher mortgage rates, groceries and petrol prices are exorbitant, how are we to expected to find the money for this? I agree that past Council’s have sat on their hands, too afraid to stick their necks out and spend the money that was needed at the time to put in place amenities/roads/drains etc. So we are unfortunately bearing the costs of their ineptitude now. At some stage someone has to pay, unfortunately it’s us.

It is painfully apparent...

Posted on 28-06-2022 13:23 | By morepork

...that the Commissioners live in La La Land and are completely out of touch with real people who have to accept whatever they decide. This farce of "going through the motions" on "public feedback" is seen to be the con that it is. They will do whatever suits them, and what suits them is a nice big pot to share with their cronies. There wouldn’t be a 13.7% increase if there wasn’t going to be a $300 million CBD development. Did you have a say in it? No? Neither did I... Did your elected Council authorize it? No. Would it be nice to have? Sure. But AFTER we attend to some of the other identified pressing priorities. I guess if you have an expense account of $300,000 a year, you probably lose sight of actually looking at price tags...

And don 't forget -

Posted on 28-06-2022 12:10 | By The Caveman

The BOPRC have not come out with their % increase yet, and their rates bill will be separate to the TCC rates bill this year. !!

No democracy

Posted on 28-06-2022 09:06 | By an_alias

Yep 10%++ forever it seems with stars in there eyes and head in the sand commissioners

whats that

Posted on 28-06-2022 04:29 | By old trucker

i here $300 million,was that not a $billion,gosh it will blow out to this, we can not buy timber,gib etc,where are they going to get this stuff,oh thats right we are paying,gosh us on pension,and them on $1,800 a day,yeah ok,well i will now have to sell the Bently and stop my coffee,CRIKEY Sunlive this is out of hand seeing TCC doing this, every time they do something it is never right,all the (CON)SULTANTS,behind the scam are raking it in,secret deals being done with mates within,GOSH IN these troubling times this is aweful,nobody will be able to afford to come into town and see this,we will all be living inside logs to survive,SURELY people will rise up against this rubbish,it is proberly signed off,imagine the foundation for this will cost millions and when built will say its not right like parking building,Sunlive THANKYOU,10-4 im out.phew.

Enough

Posted on 27-06-2022 16:49 | By LeeW

Could Anne Tolley please leave Tauranga. First the Links Ave debacle and now a 13 percent rates rise. surely she has done enough damage.

Which Tauranga

Posted on 27-06-2022 16:45 | By Warped

When they the article states "tauranga" is that refering to tauranga that can vote for tauranga or the tauranga including the rest of tauranga that cant vote for tauranga electorate? As in the other half of tauriko/pyes par, ohauiti, welcome bay papamoa, bayfair(arataki), matapihi or mungatupu?

Disgraceful

Posted on 27-06-2022 16:42 | By Let's get real

How much is the additional charge from the regional council going to be...? Will it result in a 20% increase when all the demands come in...? I guess that it’s one way to establish a city for the wealthy or vagrants enjoying the local parks and reserves, just don’t try staying here on a fixed income or dare to try and retire here. Try Tokoroa, Mangakino or Benneydale.

Hells Bells!

Posted on 27-06-2022 16:26 | By Equality

Tolley says the “massive $300 million project” has caused “huge excitement, optimism and confidence” in the city centre. Like hell it has! These commissioners live on another planet! Stuck on low wages and pitiful pensions - how in hells name do they expect us poor suckers to be excited and bl.....y optimistic ?! While their noses are stuck in the public trough - never has so much been done aginst the poor ratepayers - by so few!!

But wait - there's more

Posted on 27-06-2022 16:05 | By bigted

At this rate or rates will double in 5 years. This is clearly unstainable. Further, what are we actually getting for this huge increase? A CBD park revamped AGAIN, and that’s about it. Ok - blame the last lot as usual; that doesn’t help at invoice time!

Rates Increase

Posted on 27-06-2022 16:02 | By Ontoit

I live in Mt Maunganui and the rate increase is 18.24%. As usual Tauranga City fail to tell the whole story.

Centre city

Posted on 27-06-2022 15:37 | By Kancho

Perhaps we will need more motel accommodation for the homeless too as rate rises will be passed on

Thank Nanaia Mahuta

Posted on 27-06-2022 15:15 | By Kancho

The government who election said no more taxes , but has put in levies and hiked every conceivable costs onto us . This is increase of 1100 bureaucrats by this government has achieved nothing but cost. Wait until water doubles or triples in cost and power too.

Low rise

Posted on 27-06-2022 15:11 | By jed

My previous few rises have all been 20% or over, causing my rates to increase from 3000 in 2011 or 2012 to 11,000 today. 13.7% pushes my rates up by another $1500 a year. This council and their cash demands are despicable, they take more off me than income tax now.

rates

Posted on 27-06-2022 14:41 | By dumbkof2

take that museum out that most people dont want and all the fancy outside building decoration and rates would be in single figures. also some of those nice to haves that tolley/mahuta says we will get. how can we get rid of these non elected wasters

Money talks.

Posted on 27-06-2022 14:36 | By morepork

Mine only knows how to say: "Goodbye!" Smug comments from the Commission about the wonderful job they are doing making sure the load is shared "fairly": Average Rate increase = 6.7%, Tauranga Rate increase = 13.7% No matter how they slice it, it is still "Other People’s Money" and they continue to show reckless disregard for it, with all dissent to the grandiose unwanted schemes being ignored. We are NOT a city of anti-progress Luddites, but we do believe in doing what can be AFFORDED and prioritizing accordingly. And why not LISTEN to what people actually WANT? But, of course, that would involve a Democratic referendum and it is much more attractive for the Commission to simply rule as agents for the Boss. We don’t want Democracy here...

Get real.

Posted on 27-06-2022 14:16 | By First Responder

If the TCC had kept up with infrastructure, and spent wisely, there would be no need for such an increase. Get rid of Ann Tolley for a start, and put her salary in the kitty.

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