Whanganui District Council proposes 5.8% average rates rise for 2026-27

The council forecast an average rise of 6.6% for 2026-27 in its Long-Term Plan. Photo / NZME

Whanganui District Council is proposing an average rates increase of 5.8% for 2026-27, more than double that of the current financial year.

But it is below the 6.6% rise forecast in its 2024-34 Long-Term Plan (LTP).

Council strategy and partnerships programme manager Robyn Vickery said officers proposed deferring an extension of the Davis Library at Pukenamu Queen’s Park, due to begin in the 2026-27 financial year, but a roof replacement would still go ahead.

Overall, that meant a deferral of $600,000, with the extension project to be reconsidered as part of the council’s 2027-37 LTP, she said.

At a strategy and policy committee extraordinary meeting on March 19, Vickery said a $12.75 million upgrade at the Royal Whanganui Opera House was also proposed for reconsideration through the LTP.

“Exploratory work is still ongoing,” she said, over a deferral of $8.5m in capital expenditure and $4.25m of associated grants.

She said the council was proposing to increase funding for community organisations by $60,000 and provide an extra $500,000 to set up a standalone housing entity.

The new provider, which has a goal of building 1000 new homes over 10 years, is council-led but an external funding partner will be sought.

Whanganui Mayor Andrew Tripe said the council had “squeezed everything possible” out of the current year’s budget to keep rates low.

The average rates increase for 2025-26 was 2.2%.

“But there is very little left to squeeze,” Tripe said.

Mayor Andrew Tripe says the council is facing sustained cost pressures. Photo / NZME

“We are now facing sustained cost pressures across construction, materials and services, alongside uncertainty from central Government reforms.

“That means some increase is unavoidable.”

Other proposals include deferring $2.1m of capital expenditure for a feasibility study on sludge disposal at the city’s wastewater treatment plant and removing $590,000 of loan repayments added to the council’s loan repayment programme in 2025-26.

Vickery’s report said the financial impact of the council’s investment in the New Zealand International Commercial Pilot Academy (NZICPA) would have a 0.8% impact on the rates increase for 2026-27.

The Chronicle reported this month that the NZICPA would have cost the council $11m by the time it closed later this year.

Vickery said the council’s waste levy income had increased, meaning an extra $90,000 could be transferred to offset kerbside recycling costs in 2026-27.

Tripe said the draft annual plan would reflect a focus “on getting the basics right”.

“We are prioritising investment in core infrastructure and services and making sure we do both well.

“At the same time, we are continuing to improve efficiency across [the] council and looking at other sources of revenue to help reduce the burden on ratepayers.”

Vickery’s report said the annual plan was being prepared during “heightened community sensitivity about affordability and rates”.

There was also uncertainty in local government reform, including a Government proposal on rates-capping, it said.

On December 1, Prime Minister Christopher Luxon and Local Government Minister Simon Watts announced consultation would begin immediately on limiting annual rates rises to between 2% and 4%.

“High inflation, a weak New Zealand dollar, ever-increasing legislative requirements and an ageing asset portfolio are pushing our costs up just to continue to deliver our normal range of services and look after our assets,” the council report said.

The full draft annual plan budget and consultation document will be adopted at a council meeting on March 26.

Public consultation runs from March 31 to May 3.

Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily Whanganui District Council.