The benefits of public transport are felt both locally and regionally. Should we spread a part of the cost of

urban bus services across the region through funding a portion of those services from general rates? Or should we continue to rate locally for public transport by way of targeted rates?

Toi Moana Bay of Plenty Regional Council supports our community to access public transport by operating the Baybus network, delivered in partnership with our bus operators. This includes Bayhopper buses in the Western and Eastern Bay, and Cityride buses in Rotorua, as well as inter-regional services.

Effective public transport plays an important role in the growth of our region. The benefits of public include:

• Reducing traffic congestion for all road users
• Lowering regional carbon emissions
• Improving air quality
• Public health and social wellbeing benefits

Public transport in Tauranga, Rotorua, the Western Bay District and Whakatāne is mainly funded through bus fares, investment from Central Government through the New Zealand Transport Agency (Waka Kotahi), and targeted rates paid by property-owners in the area where the service is provided.

Some other public transport services such as buses operating in smaller centres and intra-regionally, are partly funded through general rates which are paid by all ratepayers across the region.

Like other regional councils around the country, increases in fuel prices and bus driver wages are being passed on by our operators. This is having an impact on the mix and amount of funding used to cover these costs.

As we transition towards a zero-emission fleet over the coming years we will be less exposed to these uncertainties.

A recent review of the way we fund our activities, including passenger transport services, has reinforced the benefit of public transport operating in urban centres across the region, not only where the services are delivered. Our current rating approach, based on 100% targeted rates, aligns costs with areas where the

service is provided but doesn’t fully account for other benefits across the region.

We think it would be fairer if a portion of rates funding for urban public transport came from general rates which are paid by all ratepayers across the region. We are proposing a mixed funding approach, with

both targeted and general rates, to distribute costs more equitably. This recognises that public transport provides a wider benefit to everyone in the region, for example, the opportunity for communities to be more connected, reduced congestion and carbon emissions, and improved economic activity.

This would mean that, on average, the total rates per ratepayer would decrease in Tauranga and Rotorua, and there would be small increase in other parts of the Bay. Further detail on these changes is shown below

We have prepared two options, set out below, and want to know what you think we should do. In each of the options, the shares of funding from fares and central government and other revenue are not proposed to change

Our preferred option

Option 2, ‘Rates funding for public transport in urban centres comes from 90% targeted and 10% general rates’ because we believe it balances having most of the costs sitting with those who directly benefit from the bus services and recognises that there are benefits for the wider region.