Tauranga City Councillors began their second pass at the Ten Year Plan this week learning their efforts so far haven't managed to head off more rates increases.
The first cut of the 2012-22 Ten Year Plan shows a rate increase of 6.7 per cent in 2013 and 5.8 per cent in 2014, inclusive of both growth and inflation.
'It needs to be put into the context that's really a start point,” says Mayor Stuart Crosby. 'We are going into a process that started yesterday of councillors themselves now reviewing proposed budgets.
'By the end of the year we will have concluded that, and we will go out to consultation by March next year, and we will make some final determinations late May early June.
'There is a total consensus among the elected members of Tauranga City Council to reduce our debt, and also to seek to reduce that rating requirement even further.
'That's the first cut of it. There's a lot of water to go under the bridge, but some very good discussions among elected members about being more effective, more efficient in how we go about our business.”
Included in the rating estimates is a debt retirement charge of $3.9m, which has been reduced from $6.4m in the 2012 year.
To achieve these figures the councillors have already significantly reduced the capital expenditure programme.
In past years the council's capital expenditure programme exceeded $95m per year, which has been reduced to below $65m for 2013, allowing a lower rates figure due to the lowering debt level.
The council's Ten Year Plan planning process continues on Thursday and Friday.
25 comments
CON-SENSE-US !
Posted on 16-11-2011 15:42 | By WARTS N ALL
Give me a break mate not in this life time! There is no "sense" in any of it, the fact of it is that "THERE IS NO CHOICE BUT TO REDUCE DEBT" because TCC has run out of money as competnetly predicted by many "others" from outside of TCC many years ago ...
The Council Business
Posted on 16-11-2011 16:49 | By bigted
If Tauranga council were a business, liquidation would have occurred some time back. Furthermore, 'directors' would be sacked/prosecuted for mismagement. But sadly it is not, nobody is held responsible for bad descisions, having 'cover your backside-itis' and their place on the payroll is set forever.
hears Jaws music.....
Posted on 16-11-2011 17:00 | By the_fourth_estate
just when you thought the council had got the message....it all goes bad - again! Maybe we could sell the southernpipeline for scrap? How about we salvage the Rena and sell that for scrap too?
Posted on 16-11-2011 18:31 | By armolony
We are in one of the hardest economic times in 30 years, many people are struggling to put food on the table and yet the council is pouring money into a stupid hair brained waterfront expansion and other total bull crap projects. Put simply you can rape a city only so far before people revolt and refuse to pay the fees and sack the council completely, grow a brain, reduce capital expenditure to below the current into per year, and pay off some debt. Any meat-head knows that you cant run on debt for any period of time, and raising rates each year, who of us home owners can consistently maintain 6-9% per year rises in rate fees, it's total bollocks. You don't even see those returns on money in the bank, yet the current council runs roughshod over everyone's concerns, who are they working for us or themselves?
Its where you go and what you do when you arrive there that tells the story
Posted on 16-11-2011 19:34 | By Hebegeebies
TCC Rates increase likely get a bloody grip it is an given absolute to happen like the night follows day scenario. I am sick of hearing Crosby waffle on about rates he has never told the truth about rates and he gets it wrong everytime. Never so much as an apology an admission of wrongdoing or an excuse me for not knowing which end is up.This fiscal fool is a walking financial disaster looking for a place to happen and unfortunately it just happens to be Tauranga.The current TCC CEO looks like he is in LA LA land too all the evidence is there. Tauranga people for heaven's sake wake up to these bozos how much slugging round the head can you take.
THE MAYOR PROMISED
Posted on 16-11-2011 20:37 | By BUSH WACKER
1% "DECREASE" last year and we all got a 12% increase, I would not hold out a lot of hope for a planned 6-7% increase as that is more likely to look mor elike another 12-17%, business as usual I should think.
Awesome news
Posted on 16-11-2011 22:40 | By Jimmy51
the more the rates go up the more the good ratepaying people of Tauranga will leave for other cities then how will the TCC get there money. Let you fingers to the talking fellow citizens and tick another box at the polling booth this has gone on long enough.
What happened to 10%?
Posted on 17-11-2011 07:31 | By wreck1080
Last year they were saying we would have 10% increases for 3 years. What happened? Were they just softening us up to make us happy when they were less? This council cannot spend money effectively...Look at the hotpool repairs, a DISASTER!! 2 million dollars and the pool facilities have been removed and they are still cold. I would like the council to publish a comparitive rates analysis, to compare the rates we pay with other cities. If we are the lowest in the country, I don't mind larger increases so much. I had been considered leaving Tauranga as I cannot stand these multi-digit rates rises. Remember, inflation is only 3%.
SOFTENING UP PROCESS
Posted on 17-11-2011 11:50 | By YOGI
The Mayor said 0-1% for 2013 but every year since he said that was said the actual result achieved is 50-400% worse, how can you be so wrong, fail so badly and remain? The bed the Mayor sleeps on must be about as flat as the RENA and the destiny of TCC is about as likely at this rate to.
TO think TCC voters elected them
Posted on 17-11-2011 13:33 | By KAMIKAZE
Likely that's nonsense it is a dead set certainty. Previous predictions and promises by Mayor Crosby have been so far wide of the mark many ratepayers regard him as a standing joke and are sorry they ever listened to his 'funny farm' rating drivel. ON past performances the 2012 rates increase will be 10 - 12% unless debt is increased. L O L
EVERYONE PROTECTING THEIR ARTZS ?
Posted on 18-11-2011 07:47 | By EYESPY
On rating and reducing expenditure TCC Councillors wouldn't know the time of day and would be unable to comprehend the chaff they are being fed by the backroom boyos.How come no one is prepared to face up to a promised 2010 TCC Staff audit of the 500+ City Hall seat warmers as it would save Tauranga $10m at the stroke of a pen.THE level of expertise in the whole place from head to toe is a major concern.IT is private consultancy heaven !
INDEPENDANT STAFF AUDIT
Posted on 18-11-2011 10:44 | By PLONKER
The grapevine within TCC says that the Councillors are a "push over", they will never do it because they fear the backlash of TCC staff SOOOOOO much, the TCC staff maybe "upset" because of just the thought alone. In truth there are nearer 850+ TCC staff, consultants (that were staff now paid heaps more to work less) hangers on, bludgers and assorted rabbits in the numerous rabbit holes all over the place. The TCC staff actually fear HUGELY an INDEPENDANT STAFF AUDIT because that means someone will actually be looking at what they are "doing" and of course it will not take long find or spot what the 50%+ that would not be noticed if not there. Saving to TCC ratepayers $20m pa in wages alone, then there is all the silly schemes they dream up to look busy say another $30m+ in cost, all up 50%+ saving in rates immediately. WHY WOULD YOU AVOID DOING THIS FOR YOUR RATEPAYERS!!!!!
WHAT
Posted on 18-11-2011 13:32 | By THE PELICAN BRIEF
"LIKELY" means: a word used to soften up the punters. You could get the real impact of what is really meant by it from comparing to a cattle beast wandering into the meat works, getting strung up then zapped by 50,000 volts of electricity before fatality if administered before one recovers from the before meantioned ... Recommended ratepayer option to out play that: WALK AWAY ... (BRISKLY!).
Which way is walkaway womble
Posted on 18-11-2011 14:37 | By RORTSCAM
Show me the yellow brick road. On a more serious note it seems to date Councillors with help from the Hootsman haven't saved a brass razoo on any plan. Wait till Tauranga Aquatics have finished with the $30000 slap in the goolies with non sensical Pool umbrellas their eyes will be watering
RCAL UMBRELLA's
Posted on 18-11-2011 18:49 | By PLONKER
Why do they need another one they have one ready, admittedly not perfect but better than a $30,000 umbrella (only TCC could get that to be privced so high for what?) off in some corner. The old one was over the pool just where it needed to be. Besides everything else at the Mount Hot (actually luke warm at best) Pools has not changed from before it closed so why waste $30,000 odd more attempting to window dress the place when the water isn't even warm yet after a $2 million odd spending spree!
Reduce rates by 50%
Posted on 20-11-2011 02:07 | By The Tomahawk Kid
A rates increase? - Well, theres a shock! NOT! Remove council from everything but the essential business. Remove all the cling-ons and reduce rates by at least 50%. leaving you the ratepayer with a council that can concentrate on providing quality essential service, and YOU the person that earns the money, to spend it on the things that are important to YOU.
50% RATES REDUCTION
Posted on 20-11-2011 15:22 | By DRONE
TOMAHAWK KID, that would be childs play to achieve, the only missing element is a bit a guts from a majority of Councillors to make a couple of hard but real decisions to get some stuff done as it should be. We are seriously missing financial prudence, accountability and even just a clue about what TCC is actually doing to it's victums, the ratepayers in a relentless maul that takes away and squanders a ratepayers hard earned money.
@Drone
Posted on 20-11-2011 19:11 | By The Tomahawk Kid
Yes it would. It would be a good first step. Trying to get accountability from the hundreds of staff would be like finding a needle in a haystack. Get rid of most of them and leave the bare minimum required to do justice to the essential services, and there would be a lot less people to monitor to see who does the job WE employ them to do properly. ALSO there would be much less do-gooders all looking to spend the stolen loot (oops - I mean rates) on things they think are for our own good. These people should also have extensive insurance policies so that if they make irresponsible decisions that are poor value, unsustainable, unprofitable, or poorly planned (much like EVERYTHING the council is presently involved in - ie baywave, baypark, Art Gallery, K Road etc etc) they can be sued. All care - no responsibility is not good enough.
ONLY WAY BUT ...
Posted on 21-11-2011 14:00 | By MISS ADVENTURE
Not the way at present, looks to me that they are out of control with the ratepayers cheque book, to easy to dream up some silly scheme and decide that it is all okay via a "CLOSE DOOR MEETING" where only the "faithful" are allowed to know and speak, sadly oh to often this has occurred. Tomahawk Kid, you have named but a few, if only if was limited to but them. I remember not so long ago a comment Cr Aunty Bill made and I quote "anything Council does costs three times anyone else". That is indeed correct, but if anything an understatement of the truth, good to see he realised that but sadly that has not stopped the raft of mindless schemes continuing to roll off the conveyor and drop meaninglessly upon the ratepayers "black hole" of debt and obligations that is nothing less than an insurmountable mountain of debt. I don't think TCC Councillors have been able to think as far as the simple idea that the decisions they have made are the reason for the debt.
Dont know why there is a problem?
Posted on 22-11-2011 02:24 | By THOMAS BROWN
The Councillors and staff are always so careful and considered with everything that they do so really a rates increase is only going to happen because it should and is the right answer of course because the staff tell us so. I am sure staff would never want us to spend less as that would mean some at Council would have nothing to do.
THERE IS NO ESCAPE
Posted on 22-11-2011 04:08 | By THE PELICAN BRIEF
Over spending ratepayers money causes debt, more debt cause more rates on an exponential path skyward. The lesson is simple and can be seen everywhere from large to small, a few really good examples are: Greece, Italy, Spain and Ireland. Don't think that TCC is any different for any reason, the same decisions are being made here also, the result is the same.
COUNCILLORS EFFORTS HAVE NOT AVERTED A RATE INCREASE?
Posted on 22-11-2011 04:14 | By THE PELICAN BRIEF
The reason is quite simple for that, the rates will always spiral upward because: there is no way to hide debt from rates and secondly that while TCC continues to spend more than it earns the only option is to increase rates or borrow more money (in the short term) to plug the hole, but it can not last as the money will run out. TCC does not have a printing press for making more money like the US does so the end will come a bit quicker for that reason.
THE FATE OF A RATEPAYER
Posted on 24-11-2011 12:02 | By YOGI
With increasing costs and staff, a shrinking city the only possible end result is rocketing rates. Such is the inept ability of the finger pointers (voting for everything possible to spend money) to see the train coming until it has well and truly past, been and gone ages ago.
COUNCILLORS CAUSED THE INCREASE
Posted on 24-11-2011 14:27 | By WARTS N ALL
No one else, they in the end approve the budget and spending of TCC, they then of cousre plan to fail and fail they do, the hikes in rates over the years are obvious, the cause is also but hidden from most.
PAY FOR TRIPS TO WELLINGTON
Posted on 25-11-2011 14:39 | By BUSH WACKER
So guess that means more trips, like to Wellington to employ even more people to do what, what they can not do? Do not know how to do, like the future for ratepayers is looking rather "GREY" shall we say, with a few splats of RED!
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