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Key infrastructure for growth

Tūāhanga matua hei whakawhanake. Mā wai te toenga hei utu?

Key infrastructure for growth. Who should pay the shortfall?   

We’re proposing to introduce some new targeted rates to make the way we fund development in specific growth areas fairer, and we want to know what you think.  

West Bethlehem and Pyes Pā WestTe Tumu growth area (Pāpāmoa and WairākeiPrivate pool inspections 

West Bethlehem and Pyes Pā West 

The issue 

While we have a policy of growth pays for growth, for a number of reasons we haven’t been able to collect the full cost of the infrastructure needed for growth in West Bethlehem and Pyes Pā West through Development Contributions (DCs), which are the fees developers pay to Council to build, develop or connect to a new service. Over time, this has resulted in a funding backlog in these areas of around $44 million.  

We’ve made changes to reduce the likelihood of any future DC shortfalls, but ratepayers who don’t all directly benefit from the specific development have been paying back the under-collected debt since about 2012, because current legislation doesn’t allow full cost recovery.  

What we’re proposing 

We think it’s fairer to transfer 50% of the remaining debt to the specific areas where the growth took place, via a targeted rate, with the reduced balance (50%) paid by general ratepayers, as it is now.    

Crunching the numbers  

From 2025/26 we’d establish an additional targeted rate for West Bethlehem ratepayers of between $110 and $128 each year and an additional targeted rate for Pyes Pā West ratepayers of between $80 and 93 a year.  

What do you think?

Give us your feedback on this proposal 

Consultation closed 5pm, 15 December 2023.

For more information on what we’re proposing go to page 41 of the consultation document 

Full consultation document (8.9mb pdf)

Te Tumu growth area (Pāpāmoa and Wairākei) 

The issue 

We’re investing significantly in transport projects in the eastern corridor which provide varying benefits to the city and the urban growth areas of Pāpāmoa and Wairākei. These investments also support the future Te Tumu urban growth area. We’re initially borrowing the money for these projects, with a significant amount of the cost allocated to future Te Tumu development contribution funding (development contributions are the fees developers pay to Council to build, develop or connect to a new service).  

However, there are likely to be significant delays with the Te Tumu development, which means there is substantial uncertainty around the Te Tumu funding share for these projects.  

What we’re proposing 

To mitigate risks associated with the Te Tumu development, we’re proposing to establish three targeted rates to partly pay back money borrowed for transport projects in the eastern corridor. The amount you pay would be determined by how close your property is to the projects.   

Crunching the numbers  

Starting in 2024/25, we want to establish three targeted rates over 20 years for properties in Wairākei, Pāpāmoa and citywide areas.  

Ratepayers in the city (not including Pāpāmoa and Wairākei) would pay between $32 and $38 per year. Ratepayers within Pāpāmoa (deemed to get twice the benefit due to the proximity of their properties to the project) would pay between $64 and $76 per year. Ratepayers within Wairākei (deemed to get three times the benefit due to how close their property is to the project) would pay between $96 and $114 per year.  

What do you think?

Give us your feedback on this proposal 

Consultation closed 5pm, 15 December 2023.

For more information on what we’re proposing go to page 45 of the consultation document 

Full consultation document (8.9mb pdf)

While we’re talking about targeted rates... 

Private pool inspections 

We think its fairer to spread the cost burden of pool inspections equally over three years for pool owners, as opposed to one fee every three years, but we want to know what you think. 

The issue  

Currently we are required by law to inspect pools every three years and the inspection is paid for by a fee charged to the pool owner. This means the cost burden is carried by the owner at the time of the inspection, even if the property is sold before the three-year period is up.

What we’re proposing 

We think replacing the current three-yearly fee with a targeted annual rate for pool owners would be fairer, because it would ensure future owners pay their fair share (if the property is sold before the three-year period is up). It would also reduce administration, giving us more time to devote to other building services.   

Crunching the numbers 

A targeted rate for pool owners of $107.65 per year would be introduced to fund private pool inspections. Targeting rates in this way would spread the cost burden of the pool inspection equally over three years, as opposed to one fee every three years. There would be no effect on rates paid by people who don’t own pools.  

What do you think?

Give us your feedback on this proposal 

Consultation closed 5pm, 15 December 2023.

For more information on what we’re proposing go to page 38 of the consultation document 

Full consultation document (8.9mb pdf)

Key information

Project type
Community, long-term planning 

Status
Planning

Neighbourhood
Citywide

What are targeted rates?

Targeted rates are paid by ratepayers in specific geographic areas and/or are applied when a property benefits directly from a Council service or activity. Targeted can only be spent on the things they were collected for.

Who's listening

Corporate Planning Team
Tauranga City Council

submissions@tauranga.govt.nz
07 577 7000

Other ways to get involved

Tauranga is your city. We’re working to make it even better.

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