Proposal to cap rates rise inflation at 2 per cent

The topic of rates was discussed at a council meeting on Tuesday.

Councillors have asked staff to report back on the pros and cons of capping the next average residential rates rise at inflation plus two per cent (3.9 per cent total).

This would reduce the council’s proposed budget for 2020/21 from the current draft 4.8 per cent average residential increase, says a Tauranga City Council spokesperson.

The Long Term Plan 2018-28 had proposed an average rates rise for 2020/21 of 8.2 per cent including inflation. 

"At a Tauranga City Council meeting on Tuesday, councillors also voted to confirm year three of the rating structure changes from the Long Term Plan, reducing the Uniform Annual General Charge from 20 per cent to 15 per cent and increasing the commercial differential from 1.13 per cent to 1.2 per cent."

This aims to improve the mix of who pays for how much of the total rates bill, meaning:

•    residential ratepayers with lower-value properties will pay a lower share of the rates bill
•    residential ratepayers with higher-value properties will pay a greater share
•    the rates contribution of the commercial sector will be more consistent with residential ratepayers

"Figures presented to Council showed that Tauranga still has a commercial differential lower than other major New Zealand cities.

"Staff will report back in February on the impact of the proposed reduction in the rates increase."

The Annual Plan will be considered again in the New Year, with community consultation to occur in March/April.

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Posted on 12-12-2019 16:05 | By

I’d sooner support capping council expenditure on Councillors and office staff. It’s not like they are earning their keep. Let’s be honest. The roading planners need to lose their jobs too. They’re hopeless. The answer to traffic issues is not a sign saying expect high traffic or reducing the number of lanes open to general traffic. How many times do they have to have a go before they get it right? Greerton was/is a mess. Ohauiti cycle lanes a cruel joke....the list goes on...

Here we go again

Posted on 11-12-2019 12:04 | By Taffy

Does not seem like any difference with this new council,This business of 2% plus inflation then possible rubbish collection costs and glass where does it end?Forget about the 2%,my pension doesn,t get increased with a starting point of 2% plus inflation. We need stricker criteria for projected increases for example overseas Northern Ireland have a limit set for each council and if the proposed increase is greater than the limit,the council have to submit a detailed case to a separate committee for approval, there is no 2% plus ,last year the average approved inc was 1.9%So TCC start getting your act together and operate within your means just like the rest of us!

We live in hope

Posted on 11-12-2019 10:18 | By Kancho

Well rates are already eye watering so let’s hope they can keep rates in check. Hopefully the rubbish collection will be included with no further cost too as most councils do provide. Coming to Tauranga and finding rates didn’t cover rubbish and were a hefty extra was a shock ..a rubbish shock. No wonder people send more to landfill as it’s cheaper to have only one bin or use it for everything.