KEY TOPICS, COUNCIL FOCUS

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This month, Tauranga businesspeople have an opportunity to provide feedback about two key topics – Tauranga City Council’s draft 2025/26 Annual Plan and how we manage our future water, wastewater and stormwater services.

The annual plan sets our budget and work programme for the next financial year and, while most of the key projects in this year’s budget are in progress, council elected members are keen to hear a wide range of views on the city’s needs and priorities for the future.

For most people, the proposed rate charges for the year are an important subject and, understandably, the early indication of a likely 12.5 per cent average rate rise has generated some media interest and messages of concern from our community.

There are a few points to consider here, however. Firstly, council’s financial situation has changed significantly since last year. This council has chosen prudent financial management and decided to balance the budget rather than run at a loss. This requires funding of depreciation, while dealing with lower than anticipated growth-related revenue and general increases in the cost of the goods and services we have to buy.

To balance the budget, we’ve had to cut $30 million from our operating expenditure and we’re committed to continuing the search for savings which could reduce rates costs further. Had we not taken the initiative, we would have been looking at an average rates increase of more than 20%.

Our focus continues to be on ensuring ratepayers receive value for money from council spending while we continue to address past underinvestment in infrastructure and community facilities – which Tauranga needs to become the best city in New Zealand. There are no simple or cost free solutions but we’re determined to get this right and deliver affordable progress.

Meanwhile, as part of central government’s Local Water Done Well programme, councils are required to consult with their communities and decide on a preferred future delivery model for their water services.

For Tauranga, the options include retaining a council-run operation or establishing a council-controlled organisation to do the job, either on a standalone basis or jointly with other partner councils.

We’ve assessed all of our options through a business case process and we think the best long term solution is to move to a joint council controlled organisation in partnership with other councils. This would allow us to achieve efficiency benefits based on scale and size while effectively retaining ownership of our waters assets. I would also allow us to appoint directors with the expertise needed to deliver high quality water and wastewater services and push for further efficiencies.

A council-controlled organisation would also provide access to preferential borrowing, which would help us make the future investments needed to cope with demand growth and implement necessary new technology.

Submissions on both the draft annual plan and our Local Water Done Well delivery plan close on April 28. Visit www.letstalk.tauranga.govt.nz to have your say and help us shape the future of our city. Alternatively, call in to one of the engagement events listed on the website to talk with us in person.

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