Our Rates For 2034

The total average residential rates, including water and Regional Council rates by 2034 is estimated at approximately $12,000 per year, or higher.

The average Tauranga City Council residential rates are approximately $3500. If we add average Regional Council rates (approx. $600), and average water rates (approx. $600), the total average residential rates for 2024 are approximately $4700.

Using the estimated annual rates increase percentages from the (Long Term Plan p363), the total average residential rates can be estimated by year.

Year	% Increase / yr	Factor / yr	Total Factor	Total Average Rates
2024	8.6		1.00	4700
2025	14.6	1.146	1.15	5386
2026	11.8	1.118	1.28	6022
2027	11.9	1.119	1.43	6738
2028	9.9	1.099	1.58	7405
2029	10.2	1.102	1.74	8161
2030	12.5	1.125	1.95	9181
2031	7	1.07	2.09	9824
2032	8.6	1.086	2.27	10668
2033	7.6	1.076	2.44	11479
2034	8.2	1.082	2.64	12421

Note: The rates increases listed in the LTP are for the increase in total rates income that the council receives, rather than increase in rates per household. It is assumed that the number of households increases by 1.5% each year. There are also adjustments for differential rating, IFF targeted rates, and to allow for actual rates consistently being higher than estimated. For example the estimated increase in total rates income for this year was 8.6%. The actual increase was higher at 11.1%. The net effect is that the LTP rates increases are a reasonable estimate of household rates increases. Thanks to John Robson for pointing this out (Johns Website).

Infrastructure Funding and Finance (IFF), is an alternative way for councils to borrow money over their debt limit, but at a higher interest rate. The IFF loans are funded by targeted rates.

I have assumed that water and Regional Council rates percentage increases are the same as Tauranga City rates percentage increases.

Will Tauranga residents be able to afford twelve thousand dollars average total rates per year by 2034? Can you afford that? I am a pensioner, I can’t. Perhaps we should make council more efficient, reduce waste, and reduce unnecessary spending.

To me, sensible spending, making the council more efficient, and reducing waste is far better value for ratepayers than just increasing rates every year.

Tauranga council has the lowest approval rating of any council in New Zealand ( see Scoop and The Post).