Kaipara District Council has reduced rates below its Long Term Plan budgets while continuing to prioritise dependable roading.

At the March council meeting, elected members reviewed the preliminary financial statements for the upcoming year which will make up the Annual Plan 2026/2027. Elected members agreed to a proposed rates increase of 7.9% (after growth), which is less than the budgeted Long Term Plan increase of 8.3% (after growth).

The proposed average increase follows a line-by-line review of budgets earlier in the year. Several budget lines were reduced as council and staff worked carefully through costs.

Kaipara District Council Mayor Jonathan Larsen says the draft Annual Plan reflects the work of a detailed review and making sure every single ratepayer dollar stretches as far as possible.

“One of the biggest issues raised with council is the condition of our roads. Our community has been absolutely clear that dependable roading is a priority, and that is a strong area of focus for our council,” says Mayor Larsen.

“At the same time, we’ve taken a hard look at every part of the budget to make sure we’re keeping rates increases as low as we reasonably can.”

A number of roading and infrastructure projects are included in the Annual Plan.

Council has included $5 million of traction sealing works across the district, which are subsidised at 62% by NZ Transport Agency, with council contributing $1.9 million. Traction seals are a specific type of sealed road surface treatment, often used on difficult sections of unsealed roads. It increases tyre grip and is more reliable in all-weather.

“Using subsidies and reinvesting savings from projects that come in under budget allows us to deliver more in roading across the district,” says Mayor Larsen.

A number of projects or programmes of work will be debt funded with the interest paid through the general rate. This includes a $2 million investment in the Kaihu Valley Trail (already included in the Long Term Plan 2024–2027). A trust is currently applying for $7 million in central government funding to finish the trail.

Council has also entered into an agreement with Te Tai Tokerau Water Trust to fund a $1.5 million share of a pipeline connection between the Trust’s Te Waihekeora reservoir and Dargaville. This investment supports the district’s long term economic development and resilience.

Elected members also considered whether formal public consultation is required on the draft Annual Plan. As the proposed budget and work programme align with what was agreed through the Long Term Plan, and no significant or material changes are proposed, council has agreed that formal consultation is not required.

Council staff are continuing work on the Annual Plan and supporting financial information. The draft document will be presented at a council briefing in May and is expected to be adopted in June.

What is a Long Term Plan and an Annual Plan?

Every three years, council develops a Long Term Plan (LTP) in consultation with the community. The LTP sets out council’s priorities and work programme for the next 10 years, including services, major projects, how they will be paid for, and how performance will be measured.

In the two years between Long Term Plans, council prepares an Annual Plan. The Annual Plan updates what has already been agreed through the LTP and highlights any changes to budgets or work programmes for that year.

The council discussion and decision can be viewed on the Kaipara District Council YouTube channel at: 43:42.

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