Tauranga Mayor Tenby Powell says city insolvent ahead of rates rise

Wednesday, 17 June 2020

Tauranga City Council initially proposed a 12.6 per cent rates rise.

If Tauranga City Council was a company it would be insolvent, Mayor Tenby Powell says.

Powell spoke ahead of the council agreeing to adopt the draft annual plan for consultation which would see a rates rise of 4.7 per cent.

Prior to Covid-19, Powell had spoken of the need to increase rates by 12.6 per cent to 'stop kicking the debt can down the road' for future generations.

'We're insolvent. If we were a business we would be calling the receivers now.'

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The draft annual plan was revised following the Covid-19 lockdown to soften the proposed 12.6 per cent rates increase agreed to consult on in March.

The revised annually plan identified areas that could be cut back and settled on a $244 million capital programme at a 4.7 per cent rates rise.

Powell said the city has an opportunity to bounce back from Covid-19 if it can get funding for shovel-ready projects and take advantage of central government funding.

'Central Government has been clear if you don't pony up the money will walk. I'm not going to fight this instruction.'

The plan passed unanimously on Tuesday.