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Digging Deeper Into The ‘Options’

Comparing existing rates, expenses, staff costs and debt.

Written by

Dirk Sieling

Published on

This analysis takes a closer look at the financial aspects of proposed council amalgamation options, comparing residential rates, debt levels, and operational costs across neighbouring districts.

TCDC has presented 3 options for Council amalgamations. The choices and wording suggests to me that the working group leans to Option 3 including Hauraki, Matamata-Piako and South Waikato with Option 2 the next favourite which includes Hauraki, Western Bay of Plenty and Tauranga.

 Unfortunately there is little financial context to assist in choosing. Below are some financial comparisons for those 2 options. I have included Hamilton for interest’s sake. Let’s look at residential rates first. It would seem at first glance that if rates were averaged out in an amalgamation TCDC ratepayers could benefit under both options as they have the highest rates:

Dirk Sieling on Ohuka Farm.
Dirk Sieling on Ohuka Farm.

Council Financial Comparison Summary (2026 Ratepayers’ Data)

1. Average Annual Residential Rates Bill

  • Thames-Coromandel (TCDC): $4,932.60 per year (~$75.46 per week)
  • Tauranga City Council: $4,534.04 per year
  • Matamata-Piako District Council: $4,313.81 per year
  • Hamilton City Council: $4,193.57 per year
  • Hauraki District Council: $4,087.11 per year
  • South Waikato District Council: $3,736.34 per year
  • Western Bay of Plenty District Council: $3,234.00 per year

 However, when we look at debt per household the picture darkens considerably. TCDCs relatively light debt burden would increase under all the options. Only Western Bay of Plenty has lower debt per household. Any option would have to involve Hauraki complete with its relatively high debt. Option 2 involving Tauranga would increase the debt burden even more:

2. Average Debt Burden per Household

  • Tauranga City Council: $22,857.23 per household
  • Hamilton City Council: $18,058.13 per household
  • Hauraki District Council: $14,392.85 per household
  • Matamata-Piako District Council: $5,606.12 per household
  • South Waikato District Council: $5,044.39 per household
  • Thames-Coromandel (TCDC): $3,391.85 per household
  • Western Bay of Plenty District Council: $3,274.00 per household

 Now let’s turn to costs of staff including external contractors. Again the cities appear the least cost effective:

3. Combined Manpower Cost per Household (Internal Staff + External Contractors/Consultants)

  • Tauranga City Council: $2,572.93 (Staff: $2,046.93 | Contractors: $526.00)
  • Hamilton City Council: $2,530.14 (Staff: $1,955.14 | Contractors: $575.00)
  • Thames-Coromandel (TCDC): $2,398.09 (Staff: $985.09 | Contractors: $1,413.00)
  • Hauraki District Council: $2,272.69+ (Staff-heavy model)
  • Matamata-Piako District Council: $1,787.82+ (Staff-heavy model)
  • South Waikato District Council: $1,652.95+ (Staff-heavy model)

 Note: Western Bay of Plenty District Council (WBoP) did not provide complete data for the staffing breakdown.

Where will our voice be strongest?

 There are other factors to consider as well. Under Option 3 TCDC would have a stronger voice. Option 2 means all amalgamating Councils would be coastal regions with a continual coastline from the Bay of Plenty to the Firth of Thames. A very relevant issue to consider is the willingness of other Councils to buy into any of these options. An Option 4 including Hauraki and Western Bay of Plenty with optionally Matamata-Piako and possibly South Waikato would be very attractive in terms of location and commonality of economic activity as well as make good financial sense. But undoubtedly Tauranga will have its eyes on Western Bay of Plenty or at least the greater part of it. WBoP has choices to make but to date has shown limited interest in its northern neighbours.

 Then of course there is Option 1 – creating a Super Council based on the current Waikato Regional Council boundaries. Such an entity would be powerful and have considerable leverage with the central government. In theory it could achieve good efficiencies. The big challenge would be to ensure that our local voice carries enough weight around the table.

 It is up to TCDC to provide more context. I haven’t made up my mind, have you?

From the Editor: This opinion was sought by The Informer

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