Tauranga City Council unanimously adopted its Annual Plan 2025/2026 yesterday – the first for the Council elected in July last year– and one that aims to balance investing in Tauranga’s future with affordability.
The Annual Plan outlines the organisation’s work programme for the next financial year, which gives effect to dozens of new projects across the city.
Tauranga Mayor Mahé Drysdale believes Council has struck the right balance between ensuring Tauranga continues to invest in the infrastructure the city requires, through a capital investment programme of $503 million, while keeping rates as affordable as it can.
“Our priorities were to achieve a balanced budget which invests in essential infrastructure, while also funding the depreciation on council assets so that they can be modernised or renewed when they reach the end of their useful lives,” says Mahé.
“During this process, we worked hard to identify $38 million worth of savings, resulting in an average rates increase of 9.9% for the year - just over two percent less than the increase we originally consulted on and less than the Long Term Plan 2024-34.
“Underlying every decision was a determination to ensure that all council projects and activities provide quality outcomes and real value for money for the people of Tauranga. That approach will continue throughout 2025/26 and beyond, as we look to deliver on this and future work plans.”
Mahé says he and the councillors are very aware that any rates increase will add to the financial pressures many households are experiencing.
“Unfortunately, years of past underinvestment in our infrastructure and community facilities left us with some challenging choices. It is not prudent to keep kicking the can down the road – we need to deliver now to ensure a bright future for our city.
“Our opportunity now is to deliver on one of the biggest capital investment programmes our city has ever taken on, while cementing-in cost savings and continuing to provide the essential services our people need,” Mahé adds.
“While the budget is set, this is just the beginning of the journey. We will continue to look for further savings and ensure that every dollar spent drives real value for the community.”
During consultation on the Draft Annual Plan 2025/26 and Local Water Done Well proposal in April, the mayor and councillors held more than 20 community events, received 968 submissions and 68 people spoke to their submissions at hearings.
A decision on the preferred delivery model for water services, which was consulted on in parallel with the Annual Plan, is expected to be considered at the Council meeting on 14 July 2025.