Ratepayers are urging Tauranga City Council to “rein in spending” and focus on the basics to curb a “wicked” 12 per cent rates rise.
The council christened its new chambers on Devonport Rd yesterday with a meeting to hear public feedback on its Annual Plan for 2025/26.
The plan, which proposed an overall rates rise of 12 per cent, received 968 written submissions and 96 people asked to speak to the council directly.
Submitters on Tuesday asked for rates to be reduced, more community facilities in Pāpāmoa and gave feedback about Local Waters Done Well.
Mark Kenyon-Slade said there was “great frustration and annoyance” because rates kept going up “relentlessly”.
“There’s a feeling there out there that council is addicted to spending.
“Council needs to rein in spending. Spending other people’s money is extremely easy.
“It is a responsibility of us all around this room to take this more seriously.”
Kenyon-Slade questioned why the rates increase was 12 per cent when inflation was less than 3 per cent.
“It’s wicked, it’s absolutely wicked.”
Ōtūmoetai resident Neil Pollett said Tauranga City Council (TCC) rates increase should be capped at the rate of inflation.
“Ratepayers are not a bottomless pit of money that TCC can keep mining to fund its future pet projects.
“A lot of residents feel unhappy with the direction of our council and feel utterly powerless in their ability to influence it.”
Jan Gyenge wanted a 0 per cent residential rates rise. Photo / Alisha Evans
Jan Gyenge said the residential rates increase was not sustainable.
“There should be no residential rates increase in the 2025/26 annual plan.”
Gyenge said $40 million in savings needed to be found so residential rates wouldn’t need to be increased.
“Ratepayers need to be respected.”
Removing that increase would make a positive step towards building people’s trust and confidence in the council, she said.
Mayor Mahé Drysdale said the council had found $29m in savings to bring the rates rise to 12 per cent.
“We are on track to hopefully find another $10m of savings, and unfortunately that only gets us to a 10 per cent average rate rise.”
To avoid a rates rise, the council would need to find $80m in savings, Drysdale said.
Pāpāmoa resident Ron Melville said the council needed to get the basics right. Photo / Alisha Evans
Ron Melville of Pāpāmoa said the council should spend 50 per cent of its budget on core services, 30 per cent on parks, reserves and public space, and 0 per cent on “overpriced city centre developments”.
Construction has started on parts of the council’s $306m new civic precinct, Te Manawataki o Te Papa.
“We are not here to bankroll a downtown utopia while our own footpaths crumble and our parks go unmowed, Melville said.
“This is not about being anti-progress, it’s about getting the basics right.”
Nathan York, chief executive of Pāpāmoa East-based development company Bluehaven Group, said about 30 per cent of Tauranga’s population lived in the eastern corridor.
He wanted the council to invest in facilities for Pāpāmoa.
“We’re particularly keen to see an aquatic facility that meets a regional and national standard.”
Pāpāmoa Rugby Club chairman Nick Jones and committee member Leah Sutton. Photo / Alisha Evans
Pāpāmoa Rugby Club chairman Nick Jones said Gordon Spratt Reserve, where the club was based, was over capacity and used by many sporting codes.
He asked the council for land at 4 Stevenson Drive, in Golden Sands, to be zoned active reserve so fields could be built and the club could relocate there.
This would enhance recreation facilities for the growing Pāpāmoa community, he said.
It would be an ideal a permanent home for the rugby club, Jones said.
“Our proposal supports the social, cultural and sporting fabric of Pāpāmoa.”
Submitters also spoke about Local Water Done Well.
There was an even split between people in favour of the council joining with other councils to deliver three-waters services, and those who believed Tauranga had good water infrastructure and did not need to partner with others.
The Annual Plan and Local Water Done Well hearings will continue on Thursday.
The council will deliberate on the Annual Plan on May 26.
– LDR is local body journalism co-funded by RNZ and NZ On Air.
19 comments
Ditch It
Posted on 14-05-2025 07:21 | By Yadick
Ditch the unwanted museum, Ditch the meeting rooms, Ditch the art gallery. That's more than your $80m you need to avoid a 25/26 rates rise Mahé. Open your eyes, open your ears - your ratepayers are screaming at you and you're not bloody paying attention.
Council Mafia
Posted on 14-05-2025 07:39 | By Looking
I wonder when there’s going to be an independent and unbiased investigation into councils mis-allocation of funds. Getting rid of fancy coffee machines would save some money. Be like everyone else and get it from a tin. I fail to see why ratepayers have to pay for councils luxuries. Mahi is making a wonderful hash of things so far. The 6 digit salary should be performance based. Should save quite a bit of money there to!!
Out of control
Posted on 14-05-2025 08:31 | By an_alias
Plain and simple, there is no spending cuts. Just look at the salary of the CEO getting more the the PM Luxon. You think thats value $636k plus expenses as who could survive on that small amount.
Struggling to pay
Posted on 14-05-2025 08:50 | By Saul
Since I lost my job due to Covid-19 mandates we are struggling to pay these rates.
I wonder why we stay in New Zealand.
Not listening
Posted on 14-05-2025 09:47 | By Kancho
I have some sympathy for councillors as they have inherited locked in expenditure from the Labour appointed commissioners . They dreamed up and signed off huge spending and debt and took their money and ran. However it was expected that the new council would wind back on unnecessary nice to haves and concentrate on core business first. So far canning one project for a walkway is their answer. Not good enough. I believe the bureaucracy needs a serious restructure as staff numbers keep increasing so now even with the palace there isn't room ! There has to be more cutbacks soon or any confidence in council will be totally gone. For many it already has. Everywhere core business has languished and my last answer to a request told there is no money but maybe in the ten year plan when to me it's an urgent safety matter.
The staff gravy train
Posted on 14-05-2025 10:24 | By bigted
Recent publicity indictates that there is approximately 1200 full time staff. The average wage is now $80,000 per annum. So, 1200 x $80,000 is $96,000,000. That's $96 million. Before anything is actually achieved. Every year.
I am very sure that every one of these staff can justify their position!
Reducing staff is a major problem for any large organization, but in my view, this needs looking at.
TCC PLEASE....
Posted on 14-05-2025 12:13 | By katikatinudist
Take a pay cut...They dont need 6 digit salaries'.
Totally disgusting
Council needs to get real
Posted on 14-05-2025 13:43 | By The Sage
Before too long people won’t be able to afford to live in their own homes because of the property and water rates. The majority of people working in the Council are so far out of any touch with reality that they cannot even imagine this. Fast forward to a time when they are retired and are struggling to pay these outgoings. This morning I was in the CBD and parked near the new Council building. Many trades vehicles taking up some of the few parks in town, right outside the Council. Many “workers” standing around outside chatting. Why are we paying for such a ludicrous amount of Council staff, free coffees, and a CEO who earns more than the Prime Minister. When huge losses are made like on the Marina sale, and funding tyre kicking organisations like Priority One I have to think enough.
Strength in numbers
Posted on 14-05-2025 14:02 | By AuntyMinnie
What a great selection of really valid opinions. Well said everybody. All Tauranga residents need to let the Council know how they really feel. Yaddick sums it up so well.
In addition the Council need take note and do what the people of Tauranga really want. We don’t want all the extras, we just want to live comfortably and afford a good lifestyle.
Diana Haycock
I think the best…
Posted on 14-05-2025 14:07 | By Shadow1
…way to get back on track is to ditch the existing long term plan and write another one. Long term plans should only contain infrastructure replacement items and facilities such as new toilets.
The annual plan, however, should contain regular maintenance, building repairs and refurbishment.
Anything else should be regarded as not particularly necessary unless ratepayers support it. A simple online survey of interested people will show you the support. It must be everyone who is interested, not just interested employees of the council.
Count me in!
Shadow1
Next Year Will be the Same or WOrse
Posted on 14-05-2025 14:36 | By Watchdog
Rates for next financial Year look like they will be 16%, as well as this 12% rise this year. When you add 12%, if I remember correctly, from last years rates then that is a 40% increase in our rates in just 2.5 years. That is exorbitant.
So that is 28% increase we can look forward to.
Seriously, it is time to cut the staff numbers. It has been done before. If any business was not viable they would have to cut costs dramatically and reducing staff numbers is a quick and easy way to do it. Spending millions on coffee machines is sheer indulgence. Try and justify that. Most people can use a simple coffee machine, boil their own jug of hot water, or have a boiling hot water tap for their instant coffee or Hot Chocolate.
Let me run the place - I'd have you sorted.
Hmmm
Posted on 14-05-2025 15:52 | By WestieMum
I don’t like my rates going up either, but capping rates at inflation? Don’t expect our parks or infrastructure to be maintained, our wees and poos treated, and drinking water kept at a drinkable standard, rubbish collected nor any new infrastructure for a growing city – the list goes on. A bit of Googling and I found that Central Government sets the bucket of money for Mayor and Councillors, and their performance is reviewed – it’s called an election. More googling and TCC’s increase is in the ballpark of other Councils: Hamilton 15.5, Hawkes Bay 18.1; Whakatane 11.7; Dunedin 9.95, Hauraki 12.3, Wellington 12.2, Queenstown 13.5, Christchurch 7.4. I work for a company whose CEO is paid (not including bonuses etc) well above TCC’s and does not have to keep a city operating. Crikey! All the haters - who'd want to work for Council?
Take a look
Posted on 14-05-2025 16:42 | By Fernhill22
At the sheer number of written submissions (968) received by the council, and a further 96 people who wanted to speak directly to council to raise their concerns.
This speaks volumes as it's people voting with their feet showing their displeasure at what is happening, and the direction the council has taken.
If you cut to the chase, the majority of TCC's ratepayers want to see the council cutting back costs on their bloated workforce, & exorbitant salaries. Plus, the wasteful & reckless spending, and nice to have projects like the Civic Precinct $150m+.
They want to see the hard decisions being made, cutting costs, providing value for money, funding for local communities, and a lower increase in rates in line with inflation.
The big thing is- are TCC actually listening to what everyone is telling them or will they further alienate themselves from their ratepayers
Previously quoted
Posted on 14-05-2025 17:17 | By Kancho
The council has 1299 full-time equivalent staff and associated employee costs of $128m a year.
Its 2023/24 Annual Report said 40 people earned between $180,000 and $259,999 a year. Seven staff earned $300,000 or more.
Grenfell’s total pay, including non-financial benefits, was $606,755. His remuneration package was based on advice from an independent consultant, the report said.
Yet no money to have a pedestrian safety area on Pyes Pa road for the supermarket shopping centre to cross the very busy road on equivalent to a four way intersection in the approaching winter darkness . Very dangerous and scary .
I found some more $$
Posted on 14-05-2025 19:08 | By nerak
Mahe takes a pay cut of 10%. Jen takes a cut of 10%. Councillors, and I'm reluctant to do this, as they are often the unseen/heard workers, a 5% cut. Now for Marty, one of the highest paid council ceo's, he should take a 12% cut. I have taken into consideration his fringe benefit rate of $12500, but not his other perks. And he would still earn more than the PM!
By my reckoning, that should save us $114,574. The ratepayers need it more than they do.
Speaking only for myself...YMMV (Part 1)
Posted on 15-05-2025 11:48 | By morepork
I note the general tone of the posts on this and I don't understand why Mahe Drysdale and our Council don't note them too. I don't mind about the coffee (as an addict myself I understand how it can help...), but I DO mind about the expressed opinions of the ratepaying community being contemptiously ignored when that opinion doesn't match Local Government. The very first driving principle for our new Council should have been to STOP all work in progress except fundament essential service suppy. Then review and re-prioritize what is important, using referenda on any projects that are "nice -to-have" and have a cost estimate above an affordable floor.
I like the Art Gallery, and I don't mind a museum, but the Community doesn't want to spend $300 million on a downtown refurbishment for a city where few want to go, so I would curb my enthusiasm.
Speaking only for myself...YMMV (Part 2)
Posted on 15-05-2025 12:08 | By morepork
Sage has expressed concerns which many feel. nerak did some simple cost-cutting exercises; it's not rocket science, BUT, you have to have the WILL to do it.
This Council is making the same mistakes that Anne Tolley did: treat the Ratepayers with disrespect bordering on contempt, and completely fail to engage. Engagement doesn't just mean an email korero occasionally; it means actually listening, considering, and ACTING. Local Government should NOT be a "career path" and if you see it that way, you shouldn't be in it.
Their job is SERVICE and they should be seeking to listen to and SERVE the community, even if the community doesn't necessarily want what the Council wants. We have the technology to easily address letting people express what they want, and a Democracy should USE that technology. There didn't need to be ANY Rates rise if the Council were competent.
Ahhhh....competency.....
Posted on 15-05-2025 21:50 | By groutby
....yes morepork....competency....a word rarely used for council business.
There will be no intention whatsoever to reduce staff or wages...the best ratepayers can expect is to be considered for a 'reduction in the increase' necessary to sustain this bloated organisation.
A job at TCC suggests a 'job for life' and at a very generous salary compared to....a union may have a 'pay equity' claim here but there is no other industry to compare to is there when the reward is so high for doing just what exactly for so many...??
For writer WestieMum, if the region was 'up to standard' already as it should be, then rates rises could be kept at around inflation to keep the important and necessary stuff up to this standard surely?...much as a privately owned business has to do,....so....why is is this not happening already ??....
Ahhhh....back to the topic of competency.....
@ Westie Mum
Posted on 21-05-2025 12:33 | By k Smith
You have done a lot of research and raised some very good points. Inflation has had a big part to play and services etc as you mentioned are way more expensive. Many wage earners do not get inflation adjustment but most government people do. How do we as working people get those income gaps closer? What about pensioners? Its very tuff to get bu make ends meet in this climate.
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