Rates increase less than ideal but very few options, says Waipā Mayor

An 8.1 percent increase in rates funding will be needed to maintain Waipā District Council services and activities in 2026/27 as it responds to escalating costs, higher than planned inflation, and recovery impacts from February’s State of Emergency and a November storm.

At an open workshop today, Elected Members were asked to provide guidance on the work behind the Council’s most complex Annual Plan ever, and the unprecedented challenges it faces.

The draft plan also reflects the Government’s water reforms, which require water supply and wastewater costs to be ringfenced before those services transfer to Waikato Waters Ltd on July 1. The waters work programme will result in a 19.1 percent increase in revenue needed for those activities in the next financial year.

Together, the two figures equate to a 10.7 percent average rates increase after growth, matching what was signalled for year two of the 2025–2034 Long-Term Plan, when it was adopted last year.

While water supply and wastewater related rates increases will be passed on to Waikato Waters Ltd, Council will continue to deliver some water related services such as customer services and billing in the organisation’s first year of operation.

Stormwater will continue to be managed by the Council.

Mayor Mike Pettit acknowledged the increases would not be what the community wanted to hear. “But we really are in between a rock and a hard place,” he said.

“We’ve had to absorb the costs of two severe weather events, one of which resulted in the declaration of a State of Emergency, as well as rising costs for things like fuel and electricity that households are also facing,” he said.

The operational costs for the February State of Emergency were $900,000 alone.

“Overall, we would have needed an increase of around 15.5 percent, which we knew would not be acceptable to our community.

“We asked staff to look hard for savings, and to their credit, they have done that,” he said. “We’ve been left with very few options.”

Among the savings is a $3.6 million reduction in operational budgets, supported by a transformation programme announced by Chief Executive Steph O’Sullivan last week.

Dubbed Future Us, the programme places an enhanced focus on effective co-ordinated delivery across all the Council’s functions and activities, which is expected to deliver ongoing efficiencies and enhanced delivery through continuous improvement.

Mayor Pettit said because the Annual Plan would closely reflect year two of the Long Term Plan the Council was not required to undertake consultation this year.

How the increases would affect individual properties would depend on the property value and the services received. Property revaluations in December would also influence how rates are distributed across the district. A rates calculator would be available for the community to see how the draft plan would affect them late next week.

Mayor Pettit said the Council was laser-focused on doing things differently to manage long-term pressures in the next Long Term Plan.

“Elected Members have set clear goals to guide our future decision-making, including responsible financial management, well-planned communities, fostering partnerships, strengthening trust and confidence, and community resilience.

“We can’t pretend the situation we find ourselves in is easy, and we won’t pretend it’s ideal,” Mayor Pettit said.

“But our job is to make careful, responsible decisions in the long-term interests of our district — and to be straight with our community about why.”

The Annual Plan will be presented for formal adoption at the June Council meeting.