Cost Savings Locked In For Annual Plan 2025/26

Scoop

5 days ago

Tauranga City's Mayor and Councillors yesterday settled on an average rate increase of 9.9 percent to support the city's Annual Plan 2025/2026 – just over two percent less than the increase consulted on in April.
The decision comes after four days of deliberations this week, as the Council worked through the city's priorities for the next financial year, with discussion centred on how greater value for money could be achieved across all projects.
Mayor Mahé Drysdale says the Council doesn't want to slow progress down so is focused on reducing costs while maintaining service delivery and continuing to provide facilities that the community needs and wants.
'We want to deliver for Tauranga and make this city the best in the country. Many of the decisions we're making today will make a difference in years to come. This year we've really invested in community facilities to cater for the city's growing population, because many of our existing facilities are already operating at capacity,' says Mahé.
'We understand that a 9.9% average rates increase is still considerable for the community, but we are delivering around half a billion dollars' worth of much-needed capital works, one of the largest investment programmes in the country and one of the biggest we've ever delivered.
'While the rates increase is higher than we would have liked, I'm satisfied that we've done everything we can to balance the need to invest in our future, while keeping rates affordable, including delivering $38 million of savings through this annual plan process,' Mahé says.
'I would like to commend staff for their response to our call to action to reduce spend and increase efficiencies across projects. It's been a collective effort from the Council and staff to get to this point.
'This is just the start of our journey, and there is plenty more to do.'
Mahé thanks the community for their submissions and sharing their points of view.
'We received some constructive suggestions, and we've taken everything on board.
'Now the challenge is to deliver our work programme and cement-in the budget savings we've made.'
Community facilities to receive support in the Annual Plan 2025/26:
Relocatable changing rooms for Mount Maunganui Cricket Club
Part-funding of portaloos for Tauranga Netball at Blake Park
A Pāpāmoa Rugby Club relocatable clubroom facility
Investment in lighting for the Judea Community Sport Club (subject to feasibility)
Additional support for paid lifeguard services at Tay Street Beach
A commitment has also been made to work with Arataki Sports Club and Papamoa Tennis Club on the feasibility of future facilities.
Support was also given to the development of a 50-metre outdoor training pool at Mount Maunganui College, subject to due diligence, and to the investment needed to keep the Ōtūmoetai Swimming Pool up and running
Mahé says thanks to some offers of help from the community, the Council was able to approve a few items without additional rates funding.
A full list of funded projects will be available on council's website from late-June and the Draft Annual Plan 2025/26 will go to the Council for adoption on 26 June.
Other approvals given this week:
Council approved $2 million of expenditure to be brought forward into the Annual Plan 2025/26 from the 2027/28 financial year, to fund and progress the Connecting Mount Maunganui detailed business case – with a further $1 million to be brought forward into the Annual Plan 2026/27 in addition to the $500,000 already allocated in that year. This would be financed through the existing transport-related infrastructure funding and financing levy (IFF), with no impact on rates. This project would aim to address improving road safety and access to, from and through Mount Maunganui.
Council will also invest up to $1 million in the stage two extension of the Pāpāmoa Shared Pathway, subject to this fitting within the Annual Plan budget.
Local Water Done Well
Following consultation in April, the community's submissions on the Local Water Done Well proposals were collated and presented to the Council on 28 May.
Community views on whether to establish a multi-council CCO were close to evenly split, with some people supporting the efficiencies of scale and regional perspective that this would bring, while others were concerned about cost increases and loss of local control.
Council resolved to keep all three waters together (drinking water, wastewater and stormwater), recognising that some stormwater land that has a high amenity value to the community should stay under council management, and noted that its proposed model remains a multi-CCO.
A public workshop to review financial modelling for the waters proposals will be held on 24 June.
A decision on the preferred delivery model is then expected to be considered at the Council meeting on 15 July. A summary of community responses can be found in council's 26 May 2025 agenda.