Mayor, Councillors debate rates rise and set key directions for 2026

Published on 27 May 2026

After a lengthy and careful debate at an extraordinary meeting on Tuesday, Waitaki District Councillors agreed to a 22% rates increase for 2026/27. They did so reluctantly, while also asking staff to keep identifying efficiencies, savings and new income opportunities during the financial year.

During a two-week consultation period, ratepayers were asked to consider three options for the 2026/27 rates increase — 19%, 27% or 45% — and the impact each would have on services and investment. Council received more than 500 submissions, which were heard and considered over two days last week. Those submissions played an important role in the final decision, with community hardship a major focus for councillors.

“Today has been a really tough day, and I want to acknowledge that for councillors and staff, because these aren’t easy conversations to have,” Mayor Mel Tavendale said.

“It’s a really challenging situation for everyone, and I acknowledge the hurt in the community.”

“These conversations are hard, but we need to be realistic about the environment we are operating in. Costs have gone up for Council, just as they have for households and businesses, and we can’t ignore that.”

Councillor Mata’aga Hana Fanene-Taiti, who voted against the 22% increase, said her decision reflected her responsibility to the community.

“I understand the logic and the financial implications my colleagues have raised, but in good conscience I can’t support a 22% rise — or even 19%.

“I work in the social and wellbeing sector, and I see vulnerable families every day.”

She said she had to budget for food packs for families who can’t afford rent or electricity.

“So, I understand where everyone is coming from, but I would support 15% or 16% at most,” she said.

Councillor Sven Thelning said it was important to remember how Council had reached this position.

“I keep coming back to the root cause of how we got here. It was choosing not to rate appropriately and cover costs, and it gets worse every year that you continue to run a deficit,” he said. “In my view, that would be choosing to fail from the outset.”

Councillor Frans Schlack said he could not support the 19% proposal as the figures spoke for themselves.

“Basically, at the end of this current financial year we’re going to end up with another deficit, which is what we’ve been doing for years and years and we need to change.

"What is truly concerning me, is I don't see any avenue on the 19 or the 27% as in how we are going to replay our debts,” he said.

Mayor and Councillors also set the key directions for the 2026/27 financial year. These decisions can increase or reduce funding and will guide the work Council staff carry out.

Councillors went line by line through applications for new or increased funding made during the Annual Plan consultation process. After considering public feedback, they declined most requests, including those from NOSLAM and EOCG, the Waitaki Recreation Centre, Grainstore Gallery, the Waitaki Visitor Information Centre and the Waitaki Whitestone Geopark.

One of the few successful requests was for the Waitaki District Wide Community Recreation Volunteers, which will continue to receive funding.

Other directions agreed by the Mayor and Councillors include:

• Changes to the capital expenditure budget, including a $5.3 million reduction in the water programme, a $1.2 million increase in roading investment, and $383,000 in reductions across other budgets. This reduces Council’s debt position, but not its operating deficit.
• A reduction in operating budgets for training, travel and catering totalling $92,000, along with ongoing savings.

Council officers will now prepare the 2026/27 Annual Plan based on these directions. It will return to the Mayor and Councillors for final approval before the end of June.

Fees and charges for 2026/27 were also set at the meeting, with no changes to parking fees or dog registration for the next financial year.

ENDS