Council in unenviable position as it looks to adopt Long Term Plan

Waipā District Council is set to confirm an average 15.5 percent rates revenue increase for the 2025/26 year, following a sixth line-by-line budget review and more than $198 million being cut from earlier versions of the draft 2025-34 Long Term Plan.

The latest budget review last week was in response to submissions and more being known, since the plan was drafted, about the expected costs of an extensive upcoming Local Government reform package.

Mayor Susan O’Regan said elected members had heard concerns from the community about rates increases and debt levels during consultation, and the Council was in an unenviable position.

About 10.5 percent was out of its control and was largely a result of inflationary pressures. This included four percent to ‘correct the balance sheet’ after $4.1 million of reserves were used to lower the rates requirement last year, and increases in interest expenses and gas prices.

The Council was also required by Central Government to respond to growth, and that came at a cost in the short-to-medium term as land needed to be developed before sections could be sold, and the costs could be recouped from developers.

“This plan has been the result of more than two years of hard work during which we have had to turn our minds to the on-going financial sustainability of our organisation and the need for it to deal with an ever-changing, highly-volatile environment,” O’Regan said.

“We’ve been incredibly mindful of affordability for our communities at this time, and while a 15.5 percent increase is not where we want to be, as governors of the district, we’ve had to be really mindful of the trade-offs we need to make in an ever-evolving landscape of change.

“We also wanted to ensure we maintained levels of service to our community and needed to be aware that with challenges there comes opportunity. This is our opportunity to reset, look to the future, and chart a course which is more financially sustainable and showing financial prudence. We've kept a close eye on debt and affordability as part of our planning, and our aim is to start seeing debt reducing from year five."

The Council received 145 submissions on its draft Long Term Plan, of which 35 were presented in person at hearings last week.

During deliberations, O’Regan acknowledged the community for sharing their views through face-to-face encounters, webinars, and in written and verbal submissions.

“We were presented with a number of quality and worthy submissions, and while our financial position did not allow us to support some of the great work being undertaken across the district, we look forward to those applicants coming back in subsequent years,” she said.

“We are all very mindful of the fact there is no us without the community, and that’s not just for our communities today, but also into the future.”

Key decisions made in response to submissions were to:

• Increase annual funding through a targeted rate for Cambridge Safer Community Charitable Trust from $20,000 to $40,000
• Investigate whether the ‘Te Awamutu 110kv Compensation Reserve’ could be utilised towards field upgrades, as detailed in Te Awamutu AFC Incorporated’s submission
• Write to the New Zealand Transport Agency Waka Kotahi advocating for improved state highway safety measures within the district
• Write to the New Zealand Police advocating for sufficient funding for community safety initiatives within the district
• Undertake work to bring forward the implementation of the Te Awa Cycleway extension and associated works, in conjunction with the Waipuke Park Master Plan development and associated implementation, subject to funding availability, and;
• Undertake further work in collaboration with relevant community halls to determine an appropriate approach for targeted rates in respect of such halls for recommendations at a future annual plan or Long Term Plan amendment in 2026.

The rates increase for year two of the plan, the 2026/27 year, will also remain the same at 10.7 percent. The Council will consider submissions on the future delivery of water services next week. If the decision is made to form a Council Controlled Organisation, the Long Term Plan will be amended by June 30 next year to reflect that decision.

A new Long Term Plan will be adopted in 2027.

The 2025-34 Long Term Plan is expected to be adopted next month.

You can watch the submission hearings and deliberations at www.waipadc.govt.nz/our-council/meetings-agendas-minutes-and-livestreams.