What perfect timing, just before an election the Tauranga council announces what they overcharged us rates last year but also generously announced that they will use the overpayment to endeavour to keep next year's rates down, within the self-imposed rates cap.
Whilst, of course, it is pleasing to see that the council did not spend everything that it collected from us (rates charged last year totalled $103.7 million), it is also unrealistic to expect us to dance in the streets when they will be taking the overpayment, of over four per cent, into account when striking next year's rates. This means that if an increase of say 3.5 per cent is struck next year, in reality it is actually closer to 8 per cent when taking into account what they have admitted that they overcharged us this year. Sleight of hand is what I would call it.
But I also question whether they have included possible future higher borrowing costs or the transfer of the Route K debt (currently capitalised) to ratepayers, which will both significantly financially impact on ratepayers throughout the city.

Mike Baker, Bethlehem.