The New Plymouth District Mayor and councillors will have some tough decisions to make this week as they consider proposals to considerably lower next year’s rates increase, while also balancing essential services and key investments.
Currently a 4.9 per cent increase in total rates is proposed to deliver on the 2026/2027 budget, well below the forecast 9.6 per cent in the Council’s Long-term Plan (2024-2034) and responds to New Plymouth District’s Mayor Max Brough’s directive to cap this year’s rates at inflation plus one per cent.
The details of this proposal will be debated at the Council meeting on Wednesday (18 February).
“Ratepayers have made it very clear they are at breaking point and continuing down the path of double-digit rates rises was not acceptable. I have pushed staff hard to relook at everything to reduce costs, so I think where we have landed is a good start,” says Mayor Max.
“Alongside councillors, the organisation has been focused on finding practical ways to reduce costs while still delivering essential services people rely on and keeping the district moving forward with key infrastructure investment.
“We have also had to be realistic about what we have the capacity to deliver in any year, so this proposed budget recognises this by rephasing or pausing some planned work.”
How the decisions will impact ratepayers in 2026/2027 in the pocket will vary depending on the impact of the recent property revaluations and property type.
To achieve the direction set by the Mayor, changes to spending and project scheduling include:
- Pausing the 2026/27 contribution to the Sustainable Lifestyle Capital Reserve.
- Slowing delivery of some stormwater inspection work to align with the delivery schedule
- Rephasing of NPDC’s capital delivery programme.
Key areas of investment include:
- Puketapu growth area infrastructure
- Upgrades at the Water Treatment Plant
- Puke Ariki Museum roof renewal
- Continued improvements to water, wastewater and stormwater networks.
It is proposed that NPDC will continue delivering a strong capital programme, with $134.3 million planned for infrastructure and community facilities, however down from the from the original $149.5 million.
Some projects have been rephased due to NPDC’s ability to deliver, including stormwater upgrades in Waitara and Inglewood, the Kāwaroa–Belt Road seawall, and various water supply improvements.
At the same time, NPDC is also facing rising costs including KiwiSaver increases and higher gas prices, along with reduced revenue from development contributions and parking income.
Under the proposal, NPDC’s total gross debt is up forecasted to be $523 million versus $503m in the Long-term Plan. However, it is still within prudent financial limits and is primarily due to the additional $20 million of funding that the previous Council provided to the New Plymouth Airport for the constructed Solar Farm and runway realignment.
This will be repaid by the New Plymouth Airport through income returns with the first quarterly repayment of $500,000 due this March.
Interim decisions on the draft 2026/2027 Annual Plan, which include fees and charges, will also include whether to consult on the plan or not.
The meeting starts at 1pm on Wednesday 18th February in the Council Chamber.
