The draft 2025/26 Wellington City Council Annual Plan (budget) will be considered at the Kōrau Tōtōpū Long-term Plan, Finance, and Performance Committee on Tuesday 17 December.

Further work is required to offset the impact of new cost pressures including inflation, a revaluation of assets, and additional depreciation. Current draft figures show a projected rates increase for 2025/26 of 15.9%, including the sludge levy.

Officers will come back to the Mayor and Councillors in February with options to offset these cost pressures, with the aim of keeping the increase to the 12.8% (including the sludge levy) projected under the 2024-34 Long-term Plan adopted in June this year.

“Earlier this year I committed to ensuring that Wellingtonians don’t incur a further rate increase as we work through our Long-term Plan amendment,” says Mayor Tory Whanau. “I am pleased officers will be looking into how we can mitigate this uptick in rates as a result of increased external cost pressures through the Annual Plan process.”

The committee will also consider options to establish a disaster resilience fund (a diversified investment fund) by selling ground leases, as part of work being undertaken through the 2024-34 Long-term Plan amendment process to address two significant financial risks – underinsurance and an undiversified investment portfolio. As part of this process, Councillors also considered proposals to reduce capital expenditure at a previous Committee meeting on 26 November.

The Annual Plan and Long-term Plan Amendment will go out for public consultation in March/April 2025. Elected members will make final decisions once community feedback hasbeen considered.

After being deliberated by Councillors, the amended Long-term Plan and Annual Plan will be audited prior to final adoption in June 2025 and will be in place from July 2025.

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