Notifications

Tauranga City Council will consult with the community on a draft Annual Plan 2020-21 that has been heavily revised in response to the impacts of Covid-19.

The council is looking to cut $10 million from its operational budget while restricting the median residential rates rise to 60 cents a week and the median commercial rates rise to $9.40 per week.*

It is considering many other changes to its original draft plan to balance its books against an expected $20 million drop in revenue during the coming financial year.

If approved after consultation, the revised budget would cap the council’s debt at 2.5 times its annual revenue with $225 million planned for infrastructure building projects related to transport, water supply, wastewater, parks and other facilities considered crucial for our growing city.

Mayor Tenby Powell said the proposed budget cuts would help restrict rates rises while providing a platform for recovery.

“We recognise the very real difficulties facing many people in our community,” he said.

“At the same time, it’s vital that we provide for our growing city by investing in infrastructure.

“This will help stimulate the local economy, supporting businesses and providing jobs. It will also send a clear message to central Government that we are a rational co-investment partner in our city’s recovery.”

The council is working with central Government on a partnership to invest in Tauranga's future. The Government expects councils to contribute towards such partnerships from their balance sheets and rates.

The council is proposing to include some additional service cuts and funding options in the annual plan. People will be able to have their say on these proposals when the new draft plan goes out for consultation, likely towards the end of June.

The original draft plan was based on a pre-Covid environment. Consultation finished on May 3, but hearings and deliberations have since been placed on hold. People who submitted on this earlier plan will be given the option of retaining, revising or retracting their submissions.

*The council has policies for rates remission, postponement and hardship.