Why Napier needs rates increases – Deputy Mayor Graeme Taylor

Graeme Taylor is the deputy mayor of Napier.

THE FACTS

- An 8.8% average rate increase for Napier next year is being proposed.

- Submissions on the Annual Plan close on April 24.

- Napier is proposing not to borrow money for operational costs

Graeme Taylor is the Deputy Mayor of Napier

Few topics spark stronger reactions than rates.

Every household feels the pressure of rising costs, and councils across the country are facing the same difficult conversations.

While the national picture may offer some reassurance that we’re not alone, it doesn’t make the decisions any easier.

What it does do is highlight a simple truth: the pressures facing local government are real, they are widespread, and they are not going away on their own.

Councils are grappling with the same trio of challenges: ageing infrastructure, rising costs and a significant government reform programme.

There is community resistance to higher rates, leaving little room to pass on inflation costs, or absorb new Government mandates.

These pressures make it difficult for councils to plan confidently while navigating an uncertain future.

Napier is no exception.

Yet despite these pressures, Napier’s rates this year were in the lower third of all city and district councils nationwide.

Historically, our average rates have been very low. This has been due to underinvestment in core infrastructure.

Our mindset has changed now. We recognise that keeping up with asset renewals is essential to a well-functioning, safe and resilient city.

That is why this council has increased rates a lot in recent years.

We’ve recognised that we can’t keep absorbing rising costs without eventually facing the consequences.

Holding rates artificially low simply shifts the burden to future generations. That’s not a legacy any of us should accept.

So yes, increases are needed. And it’s important to be clear about why.

Floods and Cyclone Gabrielle have shown how vulnerable our infrastructure can be.

It exposed weaknesses that had been building for years.

Strengthening our stormwater infrastructure isn’t optional and we’ve been doing that in earnest since 2020.

Every dollar we delay spending today becomes several dollars tomorrow, as assets deteriorate further and construction costs continue to rise.

Over many years now, we’ve also been responding to national standards for drinking water.

This is not a luxury; clean water is a basic expectation for a safe, healthy city.

It has required investment in pipes, pumps, treatment systems and monitoring.

These upgrades are expensive; the alternative would be far more costly, financially and socially.

Before asking our community to contribute more, we have looked hard at our operations.

We’ve reduced costs where possible, delayed nonessential projects, and focused our resources on the areas that matter most: infrastructure, resilience and core services.

But efficiency alone cannot bridge the gap created by inflation, regulatory change and the scale of the work ahead.

The average increase proposed for 2026/27 is 8.8%.

I know that any increase will be challenging for many households. That’s why transparency matters.

You deserve to know what we are doing, why we are doing it, and how we are ensuring that money is being spent wisely.

Our commitment is simple: we will continue to manage Napier’s finances responsibly, invest where essential, and make decisions that protect the long-term wellbeing of our city.

Rates are not a fee for service. They are an investment in the city we share.

Rates create safety, resilience, liveability and a strong future. When we strengthen our stormwater network, we protect homes and businesses.

When we upgrade our drinking water systems, we safeguard public health.

When we maintain our roads and community facilities, we support the daily life of every resident.

These are the foundations of a functioning, thriving city. They are not optional, and they can’t be deferred indefinitely.

One of the most important principles guiding our decisions is financial responsibility.

That’s why we are not borrowing to pay for operational costs, as many councils do. Borrowing for day-to-day expenses is the quickest way for a council to lose control of its finances.

It pushes today’s bills onto tomorrow’s ratepayers and creates a cycle of debt that becomes harder to escape.

Instead, we are borrowing only for long-term capital projects: the things that will serve our community for decades.

This is the same approach any responsible household or business would take: you borrow for the house, not the groceries.

It’s not always the easiest path, but it is the right one.

Napier has always been a community that looks ahead with optimism and determination.

The decisions we make today will shape the city our children and grandchildren inherit.

By acting responsibly and transparently, we can ensure that Napier remains an optimistic and determined city.