The Local Government Minister says she wants to appoint a commission to take over all roles of Tauranga City Council.
In a release, Nanaia Mahuta said the council had been advised of her intention to appoint a commission "in response to significant governance problems among the Council's elected representatives and the findings of an independent review".
"I have been closely watching the conduct of the Council for a number of months," Mahuta said.
"I have grown increasingly concerned at the governance issues, and the impact this has on Tauranga ratepayers and significant investment in the region.
"The Council was given the opportunity to address the concerns, but has demonstrated that more direct action is needed."
The council has 10 days to respond to the Mahuta's letter of intention, and their feedback will be considered before the commission appointment is confirmed.
"For the ratepayers in Tauranga, I know certainty is important," Mahuta said.
"I am keen to make a decision quickly so that Tauranga can get on with its critical planning and investment."
Acting Tauranga Mayor Tina Salisbury confirmed that her council had been notified, and said if the appointment is confirmed, the commission would take over "all matters relating to governance, effectively replacing and taking the role of the council's elected members".
"Our community can have confidence that council’s full range of essential services and activities will continue to be delivered professionally, effectively and without interruption," she said.
"That will include progressing the preparation of our critical 2021-31 long-term plan, ready for consultation with the community early next year."