Council to consult on 19% rate rise for 2026-27 Annual Plan
Published on 14 April 2026
Cost increases, and a large water services capital expenditure programme have led to a proposed rates increase of 19%, which will be consulted on with the community in May. For the average ratepayer, this would be an increase of around $13.15 per week.
The Council’s nine year Long Term Plan agreed in June last year, originally proposed a rates increase of 7% for 2026 but knowing this would not balance the books. The Council agreed a projected operating loss until water services were transferred to a new Joint CCO on 1 July 2027.
As part of reducing rate increases, the Mayor and Councilors at the time unfunded $9 million of depreciation for water assets for each of the 2025-26 and 2026-27 financial years. The agreed budget also did not have sufficient revenue to cover $5 million of council operating costs resulting in a total deficit of $14 million for the 2026-27 financial year.
Chief Executive Alex Parmley said, “The Long Term Plan established that Council would make an operating loss in its first two years. Since June 2025 we have seen changes in our water programme we are required to deliver, and unexpected events elsewhere in the world increasing our costs – with no certainty on their limits at this point.
The new Council has taken a fresh look at the finances including the continued increasing costs all councils face, and the risks this poses.”
Mayor Mel Tavendale said, “This is not an easy discussion to have with our community, but it’s one we must have. Past decisions have been made to keep rates low for our community, but that’s led to a gap between what was being paid and the true cost of the services, assets and infrastructure the community use. That’s no longer sustainable, and by tackling it head on – we want to set Council on a sound financial path.”
Since the last LTP was agreed, as part of discussions with the Department of Internal Affairs in August 2025, an additional $10 million of investment in the district’s water networks has been included in next year's programme. This brings the water capital works in the next financial year to $37 million. This must be delivered to meet water standards and comply with the Water Services Delivery Plan.
There are also $20 million in other projects for 2026-27. This includes the $10 million in road maintenance. The remaining money is split between the externally funded $6 million Centennial Park grandstand project, and $4 million of all other Council projects such as capital works to council property.
Council will be discussing all of the potential options with the community, as outlined in today’s meeting of Council. A workshop covering these options will be available as a recording on YouTube now.
The Mayor and Councilors are also committed to exploring support packages and ways to reduce the financial burden on the District ratepayers. They will also continue to review the budgets Council approved in 2025 including the operating expenditure of Council.
ENDS
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