Have your say on proposed budget and rates for 2025/26
Published on 17 March 2025
Residents are encouraged to share their thoughts on the draft Annual Budget for 2025/26, which outlines how rates will be allocated and how essential services and projects will be funded in the coming year.
Mayor Grant Smith acknowledges the financial pressures many households and businesses are facing.
“We know times are tough, and we’ve been working hard to cope with rising costs while keeping rates as low as possible,” he says. “That’s meant making some difficult decisions and prioritising the essential services our community relies on.”
Despite inflation easing and interest rates for debt lowering, costs for infrastructure, roading, electricity, gas, and insurance continue to rise at a pace greater than inflation.
“The draft budget closely follows Year 2 of our Long-Term Plan, with a proposed total rates increase of 7.7%, which is lower than originally forecast,” Mayor Smith says.
Unexpected costs have made budgeting particularly challenging this year.
“We’re facing new government levies, including a $400,000 charge from Taumata Arowai, the national water regulator, and another $100,000 for water economic regulation,” he says. “On top of that, we’ve had a huge reduction in transport funding from NZ Transport Agency, which means we’ve had to make some tough calls, including deferring certain projects or covering costs ourselves.”
However, Mayor Smith says some projects are too important to put on hold.
“We know how much safe footpaths and roads matter to our community, so we’ve committed $1.4 million to footpath renewals, slip prevention, and safety improvements, despite not receiving the usual NZ Transport Agency funding.”
Elected members want to hear from the community before making final decisions.
“To get this right, we need to hear from you. Visit our website, check out the draft budget, and fill in a submission form by 17 April to let us know what you think.”
It’s important to note that a 7.7% total rates increase will not mean every rates bill will go up by that amount. Changes will vary based on factors like recent property revaluations and the ongoing shift to calculating more of the rates based on a property’s capital value rather than land value.
“If your property value has dropped, you might expect a lower rates bill, but that’s not always the case,” Mayor Smith explains. “Property values are only used to fairly distribute rates. The total funding required to run city services has increased by 7.7%, so individual rates bills will vary.”
To check how your rates might change, visit the Property Search tool on our website.
Hard copies of submission forms are available until 17 April at any community library or the Customer Service Centre at 32 The Square.
Read more and have your say