Rates, debts and upcoming proposed projects are all topics of discussion as part of Tauranga City Council's Long Term Plan 2015-2025.

The council believes it has set a 'course of action to successfully manage Tauranga's growth into the future – providing and maintaining infrastructure for our growing city, delivering efficient services to our communities and investing in Tauranga's future”.

In yesterday's Council meeting, elected members looked at the third and final year of this Long Term Plan, debating which proposals would be included in the draft Annual Plan 2017/18.

Consistent with 2016/17, the draft budget for the coming financial year is placed under the sign of managing our city's accelerated growth.

Rates and debt

The extent of the city's growth is pushing up expenditure beyond what was initially budgeted in the Long Term Plan, with infrastructure expenditure having to be brought forward.

The impact of this is some differences in budgeted rates and debt levels.

This brings the proposed rates increase for the 2017/18 year to 3.8 per cent after growth, net debt to $464m and the debt to revenue ratio to 222 per cent.

This is up from the Long Term Plan which had budgeted a 3.5 per cent rates increase, $427m net debt and 215 per cent debt to revenue ratio for 2017/18.

These increases provide for full funding of the proposed $155m capital programme for 2017/18, including $4m towards a new Visitor Information Centre.

Should the full programme of works not be delivered, the rates surplus would be transferred to the Council's risk reserve. The variances in budgeted financials will be explained further in the Consultation Document.

Variances to the Long Term Plan – projects

The proposed projects for the 2017/18 budget are for the most part in line with Year 3 of the Long Term Plan.

Two proposed investments in the Annual Plan however constitute material differences with the planned budget, and will be put to the community for consideration in March / April.

These are the proposal to fund an iconic Visitor Information Centre in Mount Maunganui, and the request from the Papamoa and Mount Mainstreet organisations to increase their targeted rates, which are paid by the commercial properties within each area.

Detailed information will be provided to the community for consideration through the Annual Plan consultation process.

Other key variances to the proposed budget are associated with decisions made through the previous Annual Plan process and will not be further consulted on. Council confirmed they would be including funding in the draft Annual Plan 2017/18 to support the following projects:

• A third hockey turf at Blake Park;
• Floodlighting at the Bay Oval regional cricket ground; and
• The new Community Surf Rescue Base in Papamoa, after approval of the business case in Chambers today.

Further variances are the implementation of decisions made later on in the financial year: to progress the Heart of the City project, and develop structure plans for new urban growth areas in Te Tumu and Tauriko West – both of which will be loan-funded. Council also agreed to defer funding for the redevelopment of Masonic Park to next financial year.

User fees and charges, and policies

Several user fees and charges are proposed to increase above inflation or be introduced next financial year.

This includes some parking fees, site rentals at the Beachside Holiday Park, a new fee for online building consenting services, fees for specialised burials at the cemetery, a slight increase to the water volumetric charge, charges for marine facilities and others.

These proposed changes will be submitted to the community for feedback alongside the Annual Plan consultation.

Council will consider proposed changes to the Development Contributions Policy in March. These changes will also go out for consultation.

Have your say

The material changes and proposals in the draft Annual Plan – the Visitor Information Centre proposal, targeted Mainstreet rates, and financials – will be put forward to the community in a Consultation Document, along with statements of proposal for the changes to user fees and charges and the Development Contributions Policy.

Public consultation is planned to run between mid-March and mid-April. Hearings and deliberations will follow in May and June, with adoption of the final Annual Plan 2017/18 scheduled for Wednesday, June 28.