Ruapehu District Council has voted to maintain an average rate rise of 9% for 2026/27 in line with the current ten-year 2024/34 Long-Term Plan rate commitments.

Chief Executive Clive Manley said maintaining the 9% average increase over the past three years has been extremely challenging, with Council facing rising costs, reduced Government funding support, and significant local government reforms.

“Since the Long-Term Plan was adopted, core costs have increased well above the assumptions we originally made, dramatically changing Council’s financial landscape,” he said.

“To keep the increase at 9%, Council has had to carefully juggle its work programme each year.

This has included deferring some projects, maintenance and depreciation spending, leveraging capital subsidies where available, and identifying operational savings while still maintaining services for the community.”

Mr Manley said maintaining the services and commitments outlined in the Long-Term Plan - along with accommodating new Council decisions - would otherwise have required a rates increase closer to 15%.

“Council was able to keep the increase at 9% by deferring some planned maintenance, limiting some increases in service levels, taking advantage of higher emergency roading funding, and finding operational efficiencies,” he said.

He noted that the deferred work is not being cancelled but will instead be completed at a later stage.

“These projects have simply been rephased to help manage affordability pressures at this time.”

Mr Manley said staff had also presented options for a lower rate increase, but Council was not prepared to pursue that option due to the potential downstream impacts”

While the changes to the work programme are not subject to formal consultation, Mr Manley said Council will hold its usual community information sessions and welcomes feedback from residents.

Mayor Weston Kirton said he had challenged Council to consider whether a lower increase was possible and encouraged ongoing community discussion about the future of council services.

“While I respect Council’s decision to maintain our Long-Term Plan commitment of a 9% increase, we will need to make some hard decisions about future services,” said Mayor Kirton.

“From next year, while Council will no longer provide water services, users will be seeing on-going increases in water charges.”

“Some tough choices will need to be made to ensure we can continue providing essential services while remaining mindful of our communities’ ability to pay.”

Mayor Kirton said the upcoming 2027–37 Long-Term Plan will likely be one of the most significant reviews the Council has ever undertaken.

“I strongly encourage all ratepayers to understand the issues and take part in the conversations about the services they want - and what they are prepared to pay for.”

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