Tauranga ratepayers face a proposed overall rates rise of 12% from July, but the mayor says it could have been more than 20% if the council hadn’t found savings.
Tauranga City Council elected members voted on Monday to approve the draft Annual Plan for community consultation, beginning March 28.
The plan – which sets out budgets, rates and planned work for 2025/26 – is the first for the council, which was elected in July to replace Government-appointed commissioners.
Mayor Mahé Drysdale told the meeting a lot of what was in the Annual Plan was already in motion and couldn’t be changed.
When the council started work on the plan it was facing an overall rates increase of more than 20%, he said.
This was because the council wanted to “balance the books” and decided to fund $25 million in depreciation not included in the Long-Term Plan, he said.
Growth was not as strong as had been predicted, which meant the council needed to find $29 million in savings to get to 12%, Drysdale said.
He said he was still unhappy with 12% and the council would try to find a further $6.7m in savings to reduce rates by 2.5% more by the time the Annual Plan was adopted in June.
Tauranga Deputy Mayor Jen Scoular. Photo / Alisha Evans
Under the draft plan for consultation, a residential property worth $885,000 would pay about $394 (11.3%) more in rates for the year. (Scroll down for more estimates).
A commercial property valued at $1.23m would pay $1556 (17.7%) more in rates.
An industrial property valued at $2.3m would pay $2959 (16.8%) more in rates.
Deputy Mayor Jen Scoular said the community needed to be aware that the cost of running the city was $599m for the 2025/26 financial year.
“It’s expensive to run the city because it’s a complex beast.”
She also asked that the total staff costs be included in the consultation documents.
“Let’s be transparent, let’s be upfront.”
Welcome Bay councillor Hautapu Baker. Photo / David Hall
Councillor Hautapu Baker said he wanted to ensure the council engaged well with the community.
“In terms of general engagement approach or raising civic consciousness, in my mind, an annual plan process is one of the safest avenues to really get innovative with how we do that.”
There were generations of Tauranga families disengaged from civic consciousness, Baker said.
Discover more
He wanted Tauranga to have the highest voter participation in New Zealand at the 2028 election and the work for that started now, he said.
“We have a really choice opportunity to actually create generational change through the way that we approach and engage with our people.”
During the consultation month, the council will hold 18 events where people can speak to councillors and staff about the Annual Plan.
Consultation on the Annual Plan will run from March 28 until April 28.
Proposed residential rates rise
Estimated residential rates rises by property CV in the draft Annual Plan 2025/26:
- $355,000 CV: add $220.70 (10.1%)
- $715,000 CV: add $338.68 (11%)
- $885,000 CV: add $394.39 (11.3%)
- $1.12m CV: add $471.40 (11.6%)
- $3.929m CV: add $1391.96 (12.6%)
- Source: Tauranga City Council
LDR is local body journalism co-funded by RNZ and NZ On Air.
25 comments
Lol
Posted on 25-03-2025 07:49 | By an_alias
Oh it could have been 200% but we managed to claw it back to 12%, man are we amazing but hey we are spending recklessly and out of control. Its only been 12-15% every single year since the fab 4 arrived.
We are looking at savings though, please add that to the headline, thanks.
Obvious
Posted on 25-03-2025 07:49 | By Kancho
Seems obvious to many that the councillors are still being lead and restricted by the commissioners previous decisions . Priories on core business and responsibilities is still not apparent . The elephant in the room to me is six departments with six department heads operation with the 1148 full time staff and consultants and contractors on top . There is not an inkling of any moves by council to restructure and slim down bureaucracy . Department heads won't do it in their little fiefdoms so councillors need to get going on it otherwise we are doomed to continuing to rack up debt and rates to continually rise to pay for it.
A complex beast
Posted on 25-03-2025 07:51 | By an_alias
Yeah its hard to find savings when you have blown $309M on fancy digs for council to trot around. Hey we also want to build a flash pool and stadium as well.
I'm just not sure where the savings could have come from.
Then why?
Posted on 25-03-2025 08:09 | By jed
Council are installing raised pedestrian crossings everywhere. If they are looking for savings then this is such an obvious cut. The roading changes around Maunganui road new world are a mess and must have cost the amount that council aren’t trying to cut.
It just speaks volumes that council aren’t really looking for savings, they want luxury amenities on a basic income.
Here is the solution
Posted on 25-03-2025 10:37 | By FRANKS
that is pretty obvious to most ratepayers.........
Reduce staff numbers and costs
Only spend on essentials
Hmmm
Posted on 25-03-2025 11:05 | By Let's get real
In March 2024, the average house value in Tauranga City was $1,023,183, higher than the New Zealand median of $928,623, and Mount Maunganui is the most expensive suburb in Tauranga with a median value of $1.34 million.
You can spin the truth as much as you like, but the fact is that we are paying for extravagance, unnecessary fluff and adornments. Nice-to-have projects insisted on in backroom dealings and a ridiculous obsession with building unproven ECO buildings instead of functional facilities.
Rates notices are a demand... I wonder if they can be ignored in exactly the same way as the floride requirements...?
IT'S A CITY, NOT A THEME PARK
Unbelievable
Posted on 25-03-2025 11:49 | By Ttaylor
Mahe Mahe Mahe
Rates rise could have been more than 20% but we settled around 12% is not going to get any praise from ratepayers I know and certainly won’t get you re-elected.
How can it be justified when inflation is running around 3%
Poor management by successive councils and a 4 year stint of incompetent commissioner’s that’s the problem
We are on superannuation so 12% is going to take another $500 out of pockets. That money could have been spent in the local economy.
It’s no wonder New Zealand is struggling to get back into some positive growth.
Mr Drysdale trim some of your staff, cancel some more nice to have projects and pullout of the New Zealand Local Body as have Auckland, Christchurch, Western Bay etc
Almost any....
Posted on 25-03-2025 12:00 | By groutby
....ratepayer who lives in reality and observes, reads and listens to the way in which this council ( and probably most) conduct themselves on day to day real life business will know just what is required.....but it simply isn't going to happen...if you listen to senior spokespeople for the organisation you can instantly pick up on the fact that there is little care for ratepayer financial concerns....we ask for your money, and we are entitled to get it...they actually 'earn' nothing in real world terms...and the often covert way in which they operate is ever increasing.
Nothing will change until payers are able to have a say on the direct council operation.
There are big savings to be had along with more efficiency with it, anyone care to give us a 'top 10' actions to reduce costs?....bet they would line up with most ratepayers thoughts...
Museum saving
Posted on 25-03-2025 12:33 | By CliftonGuy
We had a clear referendum on whether we wanted a museum or not. The clear majority said "NO". Council should abide by this majority decision, and cancel the museum project.
That will definitely reduce TCC expenditure and bring rates down.
We can have a museum sometime in the future, but now is not the time.
There didn't need to be ANY raise...
Posted on 25-03-2025 12:45 | By morepork
... if Council did like most of us and learned to live within their means. ALL NON ESSENTIAL projects should be CANCELLED and a baseline established as to what we MUST spend to keep the city going. Simultaneously, there should be a drive to cut Council expenses and staff by 12% (See how THEY like it... :-)). ESSENTIAL services like water and electricity should be seriously looked at, and ALL options evaluated and costed. The cost of integrating new technology into existing infrastructure and ensuring that new infrastructure can accommodate new technology needs to be a priority. THEN, and ONLY THEN, can all the cancelled projects be reviewed and justified, one by one.
How many more years at 12%
Posted on 25-03-2025 15:06 | By Watchdog
Tauranga City Council once had a system called Zero-Based Budgetting. This meant that every year the budgets were set at zero. Any surplus funds were taken back and every Councillor had to justify whatever was put into the budget from a list. The objective was to keep the rates at 0% of the year before. In other words, NO increase unless absolutely justifiable. I knew this hugely expensive building of the new civic centre would return to haunt us. With cost overruns, it will end up at $500 million unless Council can ensure the contractors stay totally on track. $5million for a kids' playground on the Strand. Ratepayers are still seen as a bottomless pit.
Many are superannuitants who have fixed incomes and cannot afford to live here. So the next traffic jams could be caused by the inhabitants leaving town!!!
lol Mahe
Posted on 25-03-2025 15:24 | By Howbradseesit
Endearing yourself to no one here - you still don't even live in the city you preside over. Your first broken promise.
No one cares that you won a few medals now, that doesn't help your position. We care for someone that would represent Tauranga and its people well. 12% increase in rates shows you don't. Continuing with a museum despite the citizens saying no to it, shows you don't. Continuing with an unnecessary city revamp in a cost of living crisis shows you don't. Do better or you won't
get back in and you can continue living in Cambridge.
That old chestnut
Posted on 25-03-2025 16:04 | By nerak
the museum has come up in the comments. It is just one of the many nice to have the ratepayers can't afford, along with a few staff members on the gravy train. Mahe, you are just not getting the pain inflicted here, tell me where I am supposed to find another $471??
I don't earn your very attractive $179,316 on a pension. Go back to the drawing board, and try harder, for the people you aspire to serve and care about.
Out of touch with reality
Posted on 25-03-2025 16:25 | By Goose
Wow! The above shows just how delusional the typical Tauranga ratepayer is. Yes, times are tough but due to the sheer ineptitude of the councillors of the past decade, we are paying for their pandering to "oh no, don't raise my rates". Yes, the cost of living sucks right now, but if we delay development of the ghost town that is the Tauranga CBD, we risk becoming a city-less region.
Mahe is just one of many councillors and I for one think he's doing a decent job in the face of major obstacles & archaic thinking.
Answer me this, there have been dozens of promises around rates... find me one Mayor or Councillor who has reduced your rates. Empty promises. And as for the Museum and Playground... Finally, a win for boring old white racist Tauranga.
If you don't like it, leave.
Rates increase
Posted on 25-03-2025 19:50 | By Fatjak
Its obvious we can't afford the museum . So ditch it now.
Rates rise
Posted on 25-03-2025 19:57 | By Philip55
Where can we find a detailed 2025/26 budget? As they seem reluctant to let the rate payer see it.
Benchmark
Posted on 25-03-2025 20:23 | By Informed
Hamilton council cut about 300 staff last year to help keep rates down. Tauranga needs to do the same thing.
Why not compare structures? Tauranga is a smaller city, so has no excuse for a larger city.
On Your Boat
Posted on 26-03-2025 08:44 | By Thats Nice
The people have spoken and you're still not listening Mahe. We don't want a "one visit only" Museum with an old pair of woolen swimming trunks thank you. You're spending our money on a lot of bollocks for the dead cbd and now you want more of our money.
A few points
Posted on 26-03-2025 12:04 | By Kancho
Morepork electricity is nothing to do with council nor its cost.
My understanding Mahe has a house here now and if no moved yet he is imminently . Also my understanding is that fluoride added to water is a NZ Health Department and a government requirement again not really a council choice. Otherwise the calls for challenging projects, staff and costings are all valid. A big problem being high debt levels the commissioners increased and borrowed even more . So servicing debt is huge and will continue to push rate increases regardless of anything else . Kicking the can done the road for the next generation and beyond So cancelling as much as possible with slow their desire for growth but makes sense to give relief on highly stressed ratepayers
@Goose
Posted on 26-03-2025 17:18 | By laugeo
It's a strong accusation that Tauranga is "boring old white racist Tauranga" and I can't help but ask, if you actually feel and believe that, why don't you leave? Personally, I understand the need for investment in the future of our city and I recognise too that previous councils and our so called 'commissioners' didn't spend efficiently or wisely. However, the cost of rates is not what concerns me, it is the value for money that it represents and that is currently extremely poor!
@informed
Posted on 26-03-2025 17:59 | By Let's get real
It's my understanding that council employees will be increasing in number, as they are buying new equipment to bring contracting costs in-house.
I have heard from an extremely reliable source, that mowing contracts will be replaced with council employees and although I haven't heard about the gardening, structures and re-vegetation teams, I would suspect that they will also be brought back into council offices.
Whether that is a ploy to alter reported costs or managers looking to increase their wage packets, is probably open to debate
@Goose
Posted on 26-03-2025 18:40 | By nerak
Tempted to leave, but would want to take all that coffee and the machines with me, could flog it off and give the proceeds to some of the broken ratepayers I leave behind
what a damned waste of ratepayers money!
Goosey
Posted on 27-03-2025 07:38 | By Kancho
Love the amusingly ironic dragging race card into a discussion of wanting better use of ratepayers money and scaling back on spending and ditching what we can't afford. What earth has race got to do with it? How sad you are.
@ Goose
Posted on 27-03-2025 13:47 | By Yadick
. . . boring old white racist Tauranga.
To quote a certain spoilt little brat, 'HOW DARE YOU'.
Can you imagine if we put that shoe on the other foot. Firstly, it wouldn't get printed here so I have absolutely no idea how your racist comment got to be printed.
Secondly, you are so wrong and it's radicalism like that, that is so divisive to our country. Shame on you.
@Kancho
Posted on 27-03-2025 17:12 | By morepork
"ESSENTIAL services like water and electricity should be seriously looked at, and ALL options evaluated and costed."
Sorry, my thoughts ran away with me. I was not thinking about Council specifically, I was thinking about ESSENTIAL services generally. You are right and I did know that. :-)
I fervently believe we should be installing a desalinization plant and one of the objections to that would be that it will require electricity. (not vast amounts like a smelter... but more than we use now.) We are going to have to address electricity anyway, for EVs and quantum computing It really annoys me that the option is not even on the table and no-one will look at it. I guess electricity was on my mind.
Leave a Comment
You must be logged in to make a comment.