A proposed rates funded levy to raise $5 million towards the city's stormwater issues survived council and will now become part of the Annual Plan consultation process.

Flooding in Mount Maunganui during the 2013 April floods.

From 1999 to 2003 the council massively underspent the drainage budget and didn't spend any at all in 2004. Floods in 2005 saw the budget increases that were pulled back in 2009 with spending again dropping well below budget except for 2012.

Tauranga City Council yesterday voted 7-4 to include the $5m levy in the Annual Plan that will go out for public submissions with Mayor Stuart Crosby and councillors Matt Cowley, Bev Edlin and Clayton Mitchell voting against it.

But councillor Steve Morris moved it, saying that in the past TCC has not finished work it promised to do after the 2005 floods.

After the floods in April 2013 there were some comments made about the $40 million in stormwater work that has still not been delivered either. He thinks it is time the rest of the community is brought up to standard.

The Mayor spoke against it saying the targeted rate is not necessary as councillors don't know how much will be required and its best to wait for the 10 Year Plan.

If council agrees to the levy on rates for stormwater, that decision will affect every other decision to be made in the Annual Plan, says Stuart. They don't know yet what they will have to take out, or the public reaction.

Matt says the levy puts the council in the position of taking ratepayers' money without knowing how much is required, and it may just have to be banked until needed.

Bev says she wants to see the facts so she knows exactly what she is basing her decision upon. She wants it dealt with through 10 Year Plan process not the Annual Plan.

Councillor John Robson says the council has consistently underspent its stormwater budget, befitting current ratepayers by $15 million.

The $5m levy, or 4.7 per cent levy, recognises that it is current ratepayers that have the advantage. He thinks the council will be able to make some spending decisions during the 2014/2015 year, and it would not have to defer anything.

The decision to impose the levy will enable the council to make an immediate start. And whenever they do decide to start they will still have to make the same decision on funding.

Tauranga City Council's history of stormwater spending is of large amounts of money spent immediately after large floods.

In the past all improvements were loan funded, to the point where the loan balance is now $85 million.

Tauranga's full exposure to flooding isn't fully understood, and is only expected to become known with the completion of the modelling programme now underway.

City suburbs flooded to date include Otumoetai, Bureta, Matua, Mount industrial, Mount residential, Judea industrial, Maleme Street industrial, and parts of Papamoa and the Avenues.

In February 2009 councillors were advised that about $170 million was required to complete stormwater improvements across the city, and that was a low estimate at the time.

Following the landslides and flooding in 2005, the council increased the stormwater budget to $20 million each year. Because of planning design and consenting, it took nearly two years to reach the $20m level.

In 2009 the $20m was reduced to $5.528 million per annum where it has remained ever since - a decision that resulted in a number of flood control projects being delayed beyond the 10 Year Plan period.

After the 2013 floods councillors said they would increase future funding for stormwater by spending $40 million over five years, subject to confirmation through the Annual Plan and the long term plan.

The decision to use rate funding is contrary to current council policy, which is that capital spending is paid for with borrowed money to recognise the intergenerational nature that arises.

The council is going to have to pass a special resolution because of the levy.