Rotorua Lakes councillor Don Paterson. Photo / Laura Smith
Some Rotorua homeowners will be “wondering whether they should turn their heater on or eat” after the council approved an 8.57% average rates increase, one councillor says.
Urban residential ratepayers will be paying between $275 and $795 more for the 2025/26 financial year after Rotorua Lakes Council adopted its Annual Plan for the year at a meeting yesterday.
The council consulted on a draft 7.95% general average rates rise in May, down from a projected 9.8% for the year.
Council chief executive Andrew Moraes said the increase from what was consulted on was “primarily driven” by Government requirements relating to Local Water Done Well legislation levies and additional council funding to investigate a joint water services council-controlled organisation.
The council’s commitment to fund an additional $2.685m for the Tarawera Sewerage Scheme, voted for unanimously on Friday, also contributed, Moraes said.
The council received 394 submissions on its draft Annual Plan, the majority of which related to the Tarawera Sewerage Scheme.
Councillor Conan O’Brien said there had been “very strong support for further cuts” among councillors earlier this year.
He acknowledged the work done to reduce rates, “but for me, frankly, the cuts didn’t go hard enough or far enough”.
Councillor Don Paterson echoed his sentiments.
“My thoughts go out to our people who are going to be facing tough times ahead and have been for the last few years.
“It just grates me that we had an opportunity to really, really go hard, tried, and we didn’t quite get there ...
“Now I just think of those people who will be wondering whether they should turn their heater on or eat. There’s a lot of those people and it’s a growing number.
“I certainly cannot be supporting adding more pressure to their lives.”
Councillor Robert Lee said the plan was a “distinct improvement” to what was consulted on, particularly for the Tarawera community working group, who had “received what they asked for”.
The final per-property contribution of Tarawera households was lowered from $46,705 to $36,600 – the figure the group lobbied for – due to last-minute additional funding.
Councillor Karen Barker acknowledged staff ”made every effort to find savings”.
“This plan focuses on core infrastructure and the delivery of some very large capital projects and so that ... brings its own challenges with keeping the rates down as low as possible.”
Deputy Mayor Sandra Kai Fong said it was “a particularly difficult time for us all” and she shared some disappointment “that we haven’t gone as hard and as far as we can”.
Kai Fong said the council went through its Long-term Plan and said it would not do anything that was not an urgent priority, infrastructure-related, or a regulatory or legal requirement.
“We tried to cut out as much of that nice, fluffy stuff as possible.”
She said some savings were found by deferring its food and organic waste service for 12 months.
Kai Fong said she was disappointed to hear some councillors say they did not support the Annual Plan.
“This figure could have been a lot higher had we not got the money for Tarawera.”
She said it was “disingenuous” of Paterson to not support it when he supported the additional Tarawera funding.
Mayor Tania Tapsell said the council found $4 million of savings through changes to the plan and was proud the council had delivered “more for the community at a cheaper cost to the ratepayers”.
She said 150 Infracore staff were brought back into the council to ensure accountability and improve operationally.
Tapsell said RotoruaNZ would now manage the Sir Howard Morrison Centre and Energy Events Centre to ensure Rotorua continued to be a “top tourism destination”.
She said the council had fixed “many problems” and invested in Rotorua Museum, pensioner housing, community halls, and “safe and reliable” infrastructure.
“We’re helping our community be safe from flooding, we’re providing clean drinking water and also new sewerage schemes to protect our lakes.
“There is a significant amount of work that these rates pay for. And while we appreciate that we can’t please everyone, we do need to make decisions that are best not only for our current residents but our future residents as well ... ”
She said the rates rise was “significantly lower” than what other councils were adopting.
Tauranga’s overall rates rise was 9.9%, Western Bay of Plenty’s 8.92%, Whakatāne’s 11.7% and Taupō’s 8.4%.
Bay of Plenty Regional Council approved a 3% general rates increase, reduced from the forecast 8.2% after slashing $7.3m from its budget – mostly from the public transport programme.
Waikato Regional Council landed on a 5.7% increase, down from a projected 8.6%.
On adopting the Annual Plan:
For: Tania Tapsell, Sandra Kai Fong, Fisher Wang, Karen Barker, Rawiri Waru, Gregg Brown, Trevor Maxwell, Lani Kereopa.
Against: Don Paterson, Conan O’Brien.
Abstained: Robert Lee.
On setting rates:
For: Tania Tapsell, Sandra Kai Fong, Fisher Wang, Karen Barker, Rawiri Waru, Trevor Maxwell, Robert Lee, Lani Kereopa, Gregg Brown.
Against: Don Paterson, Conan O’Brien.
Residential urban rates rises by property capital value (CV) in the Rotorua Lakes Council Annual Plan 2025/26:
Megan Wilson is a health and general news reporter for the Bay of Plenty Times and Rotorua Daily Post. She has been a journalist since 2021.