The third blow in the infamous ‘triple whammy' of rates increases designed to pull Tauranga City Council's finances out of the mire is going to be a lighter blow than first thought.
Following the annual plan deliberations, the city is expecting the rates increase for the coming year to be in the region of 8-9 per cent for most properties.
'We haven't yet had the confirmation of the rating requirement as a result of all our decisions on the annual plan, but the indications are that it will be about that percentage,” says Mayor Stuart Crosby.
'This is a result of year three of our Ten Year Plan discussion three years ago when we were confronted with a significant rating requirement moving forward, and we engaged our community on that about our options to pay for the city.”
The expectation at the start of the process was that this year's rates increase would be 14.4 per cent.
The community was given the options of massive hikes in fees and charges, raising the rates, or a mixture.
'The response we had from the community was to increase the rating base rather than increase fees and charges,” says Stuart.
'It has been aggressive, it has been quite high for three years in a row.
'Now as we move through our next 10 year planning cycle we believe we are on a far firmer foundation to run the city and the endeavour will be to significantly reduce the rating requirement in the future.”
The city still needs to reduce debt and drive organisational efficiencies.
The council is working with the government agencies to transfer Route K and $58 million of associated debt.
The organisational efficiencies will be driven with a clear 'mandate and objective” between the new CEO Ken Paterson and the council, says Stuart.
Ken starts work on July 11.
'I think anyone who looked at our finances would realise we couldn't run the fifth largest city in New Zealand with our rapid growth on the rating base we had,” says Stuart.
'We were told by Attorney General's office not to use debt as much as we were using it.
'We took that on board and have raised the rating base now so we won't be using debt as much as we have in the past.
'My objective is to look at far more modest rating requirements into the future.”
When councillors looked three years ago, Tauranga rates were in the bottom quarter compared with other New Zealand cites, now following three years of large rates increases, they are about in the middle, says Stuart.
31 comments
Brickbats and bouqets
Posted on 12-06-2011 11:29 | By bigted
Well done council staff. At last they are listening to Joe public. However, if council were in business, liquidation would have occurred long ago.
Hard up
Posted on 12-06-2011 11:37 | By jobob94111
Still much too high. Sell Baypark, Baywave, Mount Pools etc. and have zero tate rise.
IN THE YEAR 2006 ...
Posted on 12-06-2011 12:02 | By WOMBLE
To be exact 15/3/2006 Mayor Crosby wrote a letter to all ratepayers justifying a rate increase for that year and listing the next 10 years of rate increases (actual in brackets) they were: - 2007 16.40%, 2008 4.55%(14.6%), 2009 3.57%(10.90%), 2010 3.53%(12.8%), 2011 4.79%(12.0%), 2012 -0.08%(11.0%+), 2013 2.40%, 2014 3.93%, 2015 2.55%, 2016 2.20%. On the 17/9/2010 being the day that the election ballot papers came out it was published in the paper that the rate rise of 17.8% + 5% contingency was for that single day 'unsustainable' ? what the Mayor fails to remember is his writings from previous, the result is no where near what has been placed in writing that can not be called "PROVEN LEADERSHIP" in fact it has only decieved ratepayers from the truth.
RE-WRITE HISTORY
Posted on 12-06-2011 12:24 | By Vomit
The only thing TCC has done to reduce rates is to "NOT" repay $5.8 million of debt (about 1/2 of what was to happen) $5.8m / $99m of this years rates is 5.86% of rates and that is almost all of what the change has been from 17.8% to 11.0%. This means that nothing else has changed from the planned spend ups and so on. What we have not seen is the TCC staff report (as requested by the Mayor during the election) that reports on the 'unsustainable' rates increase of 17.8-23% for the 2011/2012 year. None of this seems to add up at all. All that is going to happen is that the debt next year will be $6 million + higher so next year there will need to be a even bigger rate increase ...
WHERE IS THE 'SOFTEN
Posted on 12-06-2011 16:13 | By THE RING MASTER
The mayor got a pay hike, we got a rates hike and some! Where has the "governance" gone to?
Not Good Enough
Posted on 12-06-2011 16:35 | By Jitter
Much higher than the figure forecast by the Mayor in 2006. Not good enough. I agree with most of the previous comments expecially "jobob94". However it does show what can be done by staff and councillors when an over influential and spendthrift CEO no longer controls the purse strings and any and all decisions made. Lets hope annual rate increases continue to decrease when the new CEO takes over in July. Councillors, make sure you keep the new CEO on a tight rein.
@ JOBOB94
Posted on 12-06-2011 17:32 | By Crash test dummies
They are the hobby horses and indulgent lolly pops to the boys, they will sell the family silver first, Oh but they have already, silly me!
Lets see you walk the talk noddie
Posted on 12-06-2011 17:52 | By Scambuster
Sorry you guys/gals are being sucked in by this spindoctoring rhetoric.TCC STAFF HAVE DONE AND ACHIEVED NOTHING !!You have all learned nothing from broken 2006 promises or last pre- election bull****from this prattler.Even if by some jiggery pokey rates could be whittled back by sacrificing infrastructure or flogging off Route K the 2012 picture is horrific.All the get out of jail cards have been used.
ENDEAVER WILL BE MADE ...
Posted on 12-06-2011 18:44 | By JERRY CORNELIUS
What a joke, just look at the rate increases listed for 2006 to now, the TCC 10-year plan provides for 200% rate increases between now and 2016, watch this space folks ...
Get real
Posted on 12-06-2011 18:49 | By whiskers
So the Mayor thinks Tauranga rate increases are middle of the pack in relation to other councils in NZ.If they are show us where he gets his information from.With 'inflation' running at 3 to 4 % depending upon who you believe,the proposed increase is double that.And all this in a time when interest rates are at their lowest level for years.What has the council been able to achieve rolling its debt at these low interest rates.?The council should be no different to any other business or household for that matter,when it can't afford to work within its financial means then some hard and fast decisions have to be made to cut back expenditure and sell off assets that aren't returning a profit or at the very least breaking even,without ratepayers help,and stop just loading more onto many residents who soon won't be able to afford to pay what the council demands to live in Tauranga.
Choices....yipeeee
Posted on 12-06-2011 19:04 | By SpeakUp
Oooooh, his mayoral highness gives us ‘options' to pay for his new crown jewels!!! We get 'community options to pay for the city…” How niiiiice! The community has no problems to pay for OUR city. We have a problem with spendrift of public funds for crony, lobbied, totally non-core, often initiated by private or corporate interests, projects and developments, ESPECIALLY if all this is ‘created' with debt. The profit out of publicly aided projects is private or corporate, the losses and costs are socialised. But then Crosby goes on 'The community was given the options of massive hikes in fees and charges, raising the rates, or a mixture.” Take some lessons in reasoning. If it weren't for the ‘massive hike in fees and charges' we wouldn't need a raise in rates at all. It's the bureaucratic machine that's out of proportion for a start. Then, where do fees and charges stem from? From exactly the bureaucratic machine creating its own income. Massive hikes! As if we wouldn't know. Then, 'The city still needs to reduce debt…” well, thank you, ‘Vomit', for explaining the details Crosby ‘forgot' to mention.. '..the organisational efficiencies will be driven with a clear 'mandate and objective” between the new CEO Ken Paterson and the council,” says Stuart. Mr. Crosby, YOU do NOT have a mandate to place this city into debt to the order of half a billion dollars. And ‘objective'? A mayoral ‘objective' needs to drop the myopic perspective and start comprehending what happens beyond city limits. SpeakUp -Citizens Monitoring Council-
B O L L O C K S ! !
Posted on 13-06-2011 10:49 | By Hebegeebies
.
No Thought
Posted on 13-06-2011 11:25 | By Openknee8ted
given to reducing costs, put the rates up is your answer. 'We were told by Attorney General's office not to use debt as much as we were using it. 'We took that on board and have raised the rating base now so we won't be using debt as much as we have in the past.
why do they keep voting for this guy?
Posted on 13-06-2011 12:44 | By wreck1080
I don't get why tauranga residents keep voting crosby for mayor. Are these rate rises his fault? Or, the fault of past councils for underspending on infrastructure? Any good investigative journalists out there?
Kaye Foster
Posted on 13-06-2011 16:10 | By kapa
We have lived in many places, and this would have to be the worst Council we have ever struck. They plead poverty, but are always spending money. The people should be asked to give their consent on everything, it's our money, they need to be accountable. Funny how the Hot Pools are suddenly leaking water too, could this be the upgrade in a different guise that the Council wanted to do???
A MOTOR-MOUTH 4 MAYOR
Posted on 13-06-2011 16:27 | By Investigator
So here we have a news flash on a Sunday morning, too! How accommodating and convenient for Mr Crosby. I wonder, have all the other elected members been canvassed for their assessment on the rating debacle - I think not and I ask why not? There are eleven elected members, not just one figurehead. No other elected member to date has suggested rates increase will only be 8%, they are all projecting 11-12%. The credentials for this statement are thin and flawed. In March 2006, Mr Crosby wrote to all ratepayers, stating initially there would be a high rate increase, then tapering off. Well that prediction was negligently deficient and over the last 3 years, rate increases have totalled around 50% when the full 10 year prediction was for 52%. For 2011/2012, a rate reduction was forecast(?). We had Mr Crosby mouthing off again in September 2010, just prior to the Council Elections, categorically saying that a projected rates rise of 17% is unsustainable, that he had personally (what right had he) requisitioned TCC staff to immediately investigate a reduction in the rates rises for 2011 to reduce them back to something around a 7% increase and report back. No one has seen that TCC staff report! At best, the latest rates statement is likely to be wrong and at worst, it is misleading and likely to induce people to act on it as fact. If this rating propaganda proves to be wrong yet again, then further action can be expected to be taken on it.
@wreck1080
Posted on 13-06-2011 16:35 | By Colleen Spiro
I don't get it either..... Why do people keep voting him in.... The only reason I can think of is that Tauranga has the biggest "boys club" in the Bay...Everyone seems to be in everyone else s pocket...There is a name for it!
@ kiaora2u
Posted on 13-06-2011 17:04 | By Openknee8ted
The name for it .... feeling cocky all day?
Realist
Posted on 13-06-2011 17:13 | By gadstuff
What a bunch of wingers we have making the above comments. Just have a close look at what you get for your $5 to $10 per day in rates: great parks and reserves for everyone to use with no extra charge, excellent roads, good stormwater systems, good clean water supply, good sewer systems, great bus services, low cost libraries, top sports & receation centres & pool complexes, tidy clean beaches, great harbour recreation area (apart from the sea lettuce), a very attractive city to live in & invest in, etc etc. Wake up & look around you & think positively, you will even feel better.
@gadstuff
Posted on 13-06-2011 21:41 | By SpeakUp
'What a bunch of wingers we have making the above comments.” Well, ‘gadstuff', thank you for making A comment. Welcome to Sun Live commentary box.. 'Just have a close look at what you get for your $5 to $10 per day in rates:” Mate, just get your figures straight. Who is(can be) paying rates between 1825 and 3650p/y? How does this relate to half a billion debt? '…great parks and reserves for everyone to use with no extra charge, excellent roads,…” lalalala…don't give us the menu of general council grandstands. Focus on the small print and the hidden agenda (including what's ahead of us) and then tell us what we have been taken care of. We do not care about the sea lettuce, be assured, at least in this respect. Investment is not the life of a city, especially if the ‘investment' (read ‘enslavement') is drawn from future taxation, i.e. our children or anyone living here will have to bear the brunt of your spendrift. WE DO have clean beaches, good clean water supply, the storm water systems (and actually electricity= energy systems) have been built by our fathers and YOU are in charge to maintain them (it doesn't need to cost millions as THEY have shown), libraries have been created with only the books in them as the asset (you do NOT need millions for bureaucracy to run them), the harbour (don't we love it) is OUR harbour that has been ransacked by corporate profit and now WE are taxed to repair /maintain it. So, YOU, 'gadstuff', WAKE UP and look around you and realize that WE think positive and WE feel better for it. Do you want to be on board? SpeakUp -Citizens Monitoring Council-
@gadstuff
Posted on 14-06-2011 10:46 | By Openknee8ted
And don't forget the greatest Old boys Network, the best Bureaucratic Temple, the most overstaffed underperforming rate payer funded entities, TCIL and TCAL the most costly business structure to operate a hole in the ground with water in it and realistically positively the most optimistic voters in the country.
@ GADSTAFF
Posted on 14-06-2011 11:58 | By PLONKER
$10 a day is $3650 a year, god help us all that is actually where you are going, sadly it is nothing to do with essentials, not even reserves e.g. Sydnham Park is $10,000pa, that is 20 cents a year each. The big stuff that burdens us every day is Mt Greens, TCAL, Libraries, TCVL, Baywave, Baypark again (speedway and TECT Arena) then add to that what is coming like: Strand indulgence $35m and climbing, Sothern Pipeline $500m odd (dont even need it). Mate you need educating, step one ... open your eyes and "see" dont just look.
@ GADSTAFF
Posted on 14-06-2011 12:18 | By JERRY CORNELIUS
New concept for you, change "realist" to "reboot" or "rethink" in fact start thinking as that is clearly absent here, HINT: include the facts, somewhere along the path the facts have to relate, fit in etc, have another go mate!
realist
Posted on 14-06-2011 16:40 | By gadstuff
If all you wingers know so much about running a city, why don't you step up & stand for council at the next local authority elections. No, that would be too hard as it is easier for you to be arm chair critics winging into the wind.
@ gadstuff
Posted on 14-06-2011 21:23 | By SpeakUp
Lame ol' argument, mate. The Council gets paid to perform their public servant duties and not squandering public funds in crony fashion. Some out here in the real world are still able to hold a productive job to feed the drones.
Drones
Posted on 15-06-2011 12:54 | By gadstuff
"Drones" Now there is a word that is very relevant in todays society. Drones are ruining this country & are a massive drain on the tax dollar. It is time the government got tough on all those bludgers on the DPB, dole, sickness benefit etc. Even the so-called homeless in this city are costing rate payers for cleaning up their garbage.
@ GADSTAFF
Posted on 15-06-2011 13:10 | By DRONE
Your mind is wandering ... pointlessly off this blogg, I actually think that the mess unfolding at TCC is a direct result of imcompetence and a clear case of "out of ones depth x 10 fold ..." This is obvious from within, and it is good to see that some (but not you as yet) are seeing this and that all are onto it and it is gathering momentum now :)
Drones
Posted on 15-06-2011 19:49 | By gadstuff
I think you need to look at the regional council, as there are a real bunch of drones & money wasters.
@ GADSTAFF
Posted on 17-06-2011 09:39 | By PLONKER
Yes agreed there are way to many DRONES and they are keeping way to many seats warm.
‘Aggressive’ rates hike softens
Posted on 18-06-2011 13:38 | By Nigel Barker
And that is just the start Stuart. Sometimes we need to fight fire with fire. If things were being managed in an professional, open & appropriate manner their would have been NO need for softening. Stuart business that operates they way you do go broke.On the GOOD side it is great how more and more 'inappropriate ? activities' are coming to the surface well before the next TCC election. WOOO HOOO ~ awesome I say. And many thanks to Sun Live for providing this forum. A forum where 'we' still have freedom of speech. There WILL BE significant change in attitude and open honest reporting to the Citizens of Tauranga. I know this because of the support, work & growth CMC is experiencing. Instead of the citizens going it alone and getting beaten, bullied, bashed, brushed of with bureaucracy they can look forward to "STANDING UNITED WITH OUR SUPPORT" - Citizens Monitoring Council -
Stuart please provide your source for ~
Posted on 18-06-2011 20:19 | By Nigel Barker
QUOTE ~ ***When councillors looked three years ago, Tauranga rates were in the bottom quarter compared with other New Zealand cites, now following three years of large rates increases, they are about in the middle, says Stuart.*** ~ UNQUOTE.It may have worked it the past to make these statements and not be challenged Stuart. However in 2011 that is not accepted by many. So with respect I ask again that you provide the source of your information. Thanks in anticipation. - Citizens Monitoring council -
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