In February, councillors decided not to consult on the Annual Plan, because there were no significant changes to the 2024–34 Long-term Plan approved last year, which forecast a 10.13% rates rise for 2025/26.
Council general manager for corporate services Adele Henderson told Thursday’s meeting that for the last financial year, the council had a general rates deficit and needed to rebuild the rates reserve.
There were also some changes to loan lengths and repayment schedules that meant another $2.3 million was added to the budget, she said.
To offset the costs, staff found $1.4m in savings through reducing debt expense, personnel savings and other cost reductions, Henderson said.
There was a reduction of 13 fulltime equivalent staff as part of the personnel savings, she said.
Councillor Rodney Joyce said there were “a number of mistakes” made that led to the budget changes and asked for an explanation.
Henderson said the council was dealing with “very complex” taxation for the local government sector.
The council also had 160 targeted rates, which provided challenges to ensure everything was correct, she said.
The financial software they had used for 20 years was being upgraded to help with these complexities, Henderson said.
Katikati-Waihī Beach ward councillor Rodney Joyce. Photo / John Borren
Joyce said it was an “interesting report to put out in an election year” because politicians were accused of “sweeping things under the carpet” before elections.
“It’s always tempting for anybody to bury their problems, and we haven’t done that, we’ve actually brought them out and shown the world.”
The Annual Plan needed to be implemented because people’s rubbish needed to be collected, parks needed to be mown and work done on roads, he said.
“Can we be particularly proud of this? No, this is a bit of a clean-up.”
The council needed to work out a new model for operating because the current one was not affordable for ratepayers, Joyce said.
“If we can’t do that, then I’m concerned for the future of our ratepayers and the bills they [will] pay.”
Kaimai ward councillor Margaret Murray-Benge. Photo / John Borren
Councillor Margaret Murray-Benge said the average incomes for some council wards were $32,000, $39,100 and $41,900, so the council did not represent a “high-income” community.
She “regretted” the rates increase was not closer to the level of inflation but sorting out the finances was needed, Murray-Benge said.
Deputy Mayor John Scrimgeour said it was disappointing not to deliver what the council put out in its draft plan in February.
“It’s appropriate for what we’ve discovered and uncovered since and so I think it’s very sensible to move forward with this.”
There was “considerable variance” in the rates increase for different properties so there would be angst from some in the community and rejoicing from others about the rates, he said.
“We need to be prepared for those comments from people as we run into them.”
Deputy Mayor John Scrimgeour. Photo / John Borren
Just because there was a sum in the budget didn’t mean it needed to be spent, Scrimgeour said.
There were many things that could be budgeted accurately, and he encouraged staff to assess the variables and opportunities to try to bring the next year in under budget, he said.
Projects the council approved as part of the plan included upgrades to the Ōmokoroa and Te Puke roading networks, improvements to the Minden Lookout and surrounding facilities, staged delivery of the Tahawai and Beach Rd concept plans, and starting the Dave Hume Pool upgrade in Katikati.
This would mean an average increase per ratepayer of $11, a statement said.
The council reduced its budgets by $7.3m to slash the increase, with more than half – $3.95m – taken out of the public transport programme.
A $48m dividend from council investment arm, Quayside Holdings, reduced rates by an average $400 per household.
Outgoing regional council chairman Doug Leeder said the plan struck a balance between affordability, managing debt and infrastructure, and delivering services the community expected.
How much will Western Bay rates increase?
Residential rates rises by property capital value in the Annual Plan 2025/26:
Capital value $650,000 – $114 (2.7%)
Capital value $1.01m – $164 (3.5%)
Capital value $1.3m – $206.5 (4.3%)
Rural rates rises by property capital value in the Annual Plan 2025/26:
