Community events

• Net debt on 31 July 2024 (closest month-end to the election): $1.113 billion
• Net debt on 30 September 2025: $1.312 billion
• This reflects a $200 million increase since the new council took office.

This increase is less than what was budgeted for and is essential to fund investment in infrastructure. It is important to note that, as of 30 June 2025, debt was $138 million below the budget set in the Long-Term Plan (LTP) by the Commissioners.

With regards to the volleyball courts at the Haumaru Sport & Recreation Centre, we worked closely with Tauranga Volleyball, who selected the court placement based on the available space. Their input helped ensure the best possible layout for the venue. Because the facility was adapted from an existing building, some space limitations—such as shorter run-offs—were unavoidable. These differ from purpose-built venues like Baypark but were considered during planning to ensure the courts remain fit for use.

The cost of installing each of the two tree-surround seats on Grey Street was $18,495 (excl. GST). In addition, a seat installation project in Red Square, involving three tree-surround seats, three bench seats and one platform seat, cost a total of $88,000 (excl. GST). Tauranga City Council needs to make sure these assets are strong and fit for purpose, and we expect them to last for many years.

Te Manawataki o Te Papa is designed as a civic precinct, not a commercial enterprise. It will deliver broad cultural, social and economic benefits for Tauranga and while it may generate revenue through activities such as events, venue hire and museum admissions, these are not expected to fully cover the operational costs of running the precinct.

Based on the 2023 business case, the precinct is projected to have an annual net operating cost of about $26 million once fully open, which would be funded through a mix of general and targeted rates. This is consistent with the way most public libraries, museums, and community hubs across Aotearoa are funded.

The figures included in the 2023 Business Case are currently being refined to look for opportunities to deliver additional value-for-money for Tauranga ratepayers. An updated Te Manawataki o Te Papa operating budget will be presented to the Council as part of the next Long-term Plan process and this will include more detail about the cost of operating the museum.

Te Manawataki o Te Papa is a transformational project for Tauranga, with a total budget of $306 million. It represents a significant investment in the city’s future, bringing together cultural, civic, and community facilities that will enhance the vibrancy of the city centre and deliver long-term benefits for residents and visitors alike.

$151.5 million has been allocated from ratepayer loan funding. The remaining funding was originally expected to come from a mix of central, local, and regional government grants, fundraising and asset sales. However, shifts in government priorities, particularly around water reform and community infrastructure funding, mean that some of those initial assumptions are no longer viable.

As of November 2025, the funding stack for the non-rate payer portion sits at $48.4 million from several different sources, including $21 million from TECT – the charitable trust’s largest ever funding investment. Council continues to explore a broad range of funding options and remains committed to delivering Te Manawataki o Te Papa in a financially responsible way ensuring value for money. Any shortfall in alternative funding sources could mean additional ratepayer debt, however we remain committed to continue exploring all alternative funding avenues.

A detailed funding update will be presented to at a Council Meeting on 15 December, outlining the current position and the options available to address the balance of around $106.5 million. This will be considered in an open and transparent way.

Background

One of the first decisions Council made, following being elected last year, was how to fund the $151 million of rate-payer debt. The Council’s decision was to finance this on balance sheet via Local Government Funding Agency (LGFA) borrowing, versus the Infrastructure Funding and Financing (IFF) tool. This is predicted to save over $3.5 million per year in savings assuming debt is fully drawn at today's interest rates.