Council supports rates cap intent, but calls for flexibility

Waipā District Council supports the Government’s aim to improve rates affordability but is urging flexibility in how a national rates cap is designed and applied, particularly for fast-growing districts, says Mayor Mike Pettit.

The Council yesterday approved its submission on the proposed rates target model, supporting its overall intent while highlighting the risks for for Tier 1 growth councils like Waipā.

Mayor Mike Pettit says Waipā is already moving toward lower rates increases over time and the submission is about getting the settings right, not pushing back against financial discipline.

“By the time a rates cap is expected to come into force, we’re already tracking toward rates increases of around 4.6 percent,” Mayor Pettit says. “This isn’t about panic. It’s about making sure the model works in the real world.”

Waipā is legally required to plan for and build infrastructure to support long-term housing and job growth across towns such as Cambridge, Te Awamutu, and Kihikihi. Much of this infrastructure must be built before new residents arrive, which creates upfront costs that are hard to manage under a tight rates cap.

Pettit says councils in the Waikato face similar challenges, but not all councils face the same level of growth pressure.

“A one-size-fits-all approach might be simple, but it’s rarely the best approach,” he says. “High-growth councils like Waipā, Hamilton, and Waikato are dealing with very similar issues, and those differences need to be recognised.”

The Council says recent rates increases are driven by essential costs such as growth-related infrastructure, asset renewals, depreciation, and borrowing costs — not discretionary spending.

The submission also raises concerns about unfunded mandates and new requirements from central government, which can add significant costs with little notice and make it harder for councils to stay within strict rates caps.

“We support the intent, and we want it to succeed,” Mayor Pettit says. “If the Government gets the detail right, we can protect affordability while still supporting growth, jobs, and strong communities.”