There is new Government direction, changes to how water services will be delivered, ongoing cost pressures, and increasing expectations around affordability. Last week’s announcement from Government adds another layer to that. Councils have been given three months to work with others in their region to put forward proposals to reorganise how local government operates, with a clear message that change is coming, whether councils lead it or not. We want to be clear. We support the intent.

There is room to improve how local government works. Greater efficiency, less duplication, and clearer decision-making are all goals we share. Our communities expect us to deliver value, and we are committed to doing that.

But the reality on the ground is more complex. Councils are already navigating significant reform, including major changes to how water services are delivered, alongside preparing Long Term Plans, managing infrastructure demands, and responding to ongoing cost pressures. Overlaying a three-month window to develop outline proposals for structural reform, while this work is underway, is a significant ask. Good reform takes time. It requires careful analysis, strong community input, and a clear understanding of local impacts. These are not decisions that should be rushed. At the same time, we want to be clear about our starting point.

Over the past few years, we have taken deliberate steps to strengthen our financial position. We are ranked among the lowest councils in New Zealand for expenditure relative to our size, and we have made a series of decisions to reduce reliance on debt and manage costs responsibly. That work matters. It means we are in a more stable position than many, but it does not remove the challenges ahead. Alongside structural reform, there is also increasing focus on affordability. Some of what is being proposed sounds straightforward. For example, the idea of rates capping. On the surface, who wouldn’t want to pay less?

But the reality is more complex. Current indications are that councils may be expected to limit rates increases to around 2 to 4 percent in the coming years. At the same time, the cost of maintaining and renewing infrastructure continues to rise, along with the expectations communities have of the services we provide. Those two things do not naturally sit together. In simple terms, if councils are required to limit what they collect, they will need to reduce or change what they deliver. That is the broader context we are working within.

So what do we know, and what do we not yet know?

We know that change is coming across the local government sector. We know that affordability will remain a strong focus. We know that we are required to develop our next Long Term Plan within a set legislative timeframe. We also know that we cannot pause that work while national decisions are finalised. We do not yet know exactly how Government policy will land, or what decisions may follow the upcoming election. What we cannot do, however, is wait.

The Long Term Plan process is required by law, and it needs to be developed now. That means we must plan based on the information we have, while remaining flexible enough to respond as things become clearer. That is why we are beginning work on what we are calling our Future Fit Roadmap. This is a structured process to make sure we are financially sustainable and prepared for the changes ahead. It will involve looking carefully at how we operate, what services we deliver, and how those services are funded over time.

We are in the early stages of this work. No decisions have been made, and we are not yet at the point of presenting options. This phase is about building a clear understanding of the challenges and the choices in front of us.

Over the coming months, we will work through this in stages. We will test different approaches, consider how changes may need to be sequenced, and ensure that when options are brought forward through the Long Term Plan, they are well-informed and transparent.

We know that conversations like this can raise questions. They should. We need to be sure that whatever our future it’s in the best interests of Horowhenua. Our commitment is to be open about the realities we are facing, clear about the choices ahead, and upfront about what those choices may mean for our community, and we are looking for ways to ensure meaningful community conversations are enabled. There are no easy answers, but there is a responsibility to plan ahead, rather than react later.

If there was ever a time to take an interest in local government, it is now.

Mayor Bernie Wanden

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