A message from Mayor Mahé with Mahé Drysdale

Tauranga City Council is bringing together its draft Annual Plan 2025-2026, which will set the city’s budget for the next financial year.

This Annual Plan is about finding the right balance – continuing to move our city forward for the benefit of this and future generations, while ensuring that rates costs are as fair and affordable as possible today.

From March 28 to April 28, council’s elected members and staff will be speaking directly with residents, community organisations and businesses about the budget decisions proposed through the draft plan and asking for their feedback, so that we understand what the community’s priorities are.

The economic outlook remains challenging, and the city therefore faces some important choices. With that in mind, it’s worth reflecting on the services your rates pay for now, bearing in mind that almost half of council’s revenue comes from sources other than rates, including grants and subsidies, user fees, development contributions and interest.

Where rates go

Currently about 21% of our rates revenue is spent on Tauranga’s spaces and places – maintaining and upgrading our parks and reserves, walkways, playgrounds and community facilities. Then comes transportation, using about 16% of rates revenue – this is the cost of maintaining and improving roads, footpaths and cycleways, plus road safety activities.

Wastewater reticulation, treatment and disposal uses 14%; then your water supply – the cost of water treatment and maintaining our reservoirs and piping network – is 13% including water by meter user charge collected as a targeted rate. Stormwater collection and disposal also takes-up about 9% of rates.

Community services – libraries and community hubs, arts, culture and heritage activities, venues and events, and community development initiatives – take up about 12% of rates.

Smaller costs

A range of smaller cost centres include the following:

Sustainability and waste use 6% – this is kerbside collections, waste operations and reduction programmes and climate and sustainability actions.

Regulatory Compliance use 3% – building and environmental planning and regulation services, plus bylaw enforcement.

City and Infrastructure Planning use 3%. Economic Development activities use 2%. Emergency Management activities use 1%.

In this Annual Plan, we’ve needed to defer about $230 million of capital spending, but we’re still proposing to deliver a record $515 of capital investment.

Have your say

We’re also looking to find ways of reducing council’s operating costs, with the proviso that we don’t want to reduce the levels of services we currently deliver, unless there are areas where the community thinks changes can be made which won’t impact on the value of the services they receive. We’re keen to hear your ideas on that.

Annual Plan community consultation opens March 28 and will close on 5pm, April 28, 2025. Find out how to have you say at: letstalk.tauranga.govt.nz/projects/annual-plan-2025-26