Council sets rates for year ahead

Taupō District Mayor John Funnell says they have gone over the budget in detail for the year ahead but the “unpalatable truth” is that rates will need to rise by an average of 6.6%.

The council adopted its 2026/27 annual plan on Tuesday this week, setting out its schedule of work for the year ahead and how it will pay for it.

Inflationary pressures on operating costs, mainly around the cost of waters services and depreciation is driving the increase.

That means the council had to find $1.7 million in savings to keep the rates rise near the figure of 6.7% forecast in the long-term plan.

The increase in the cost of waters services accounted for nearly half (2.9%) of the final 6.6% average rates increase.

Several projects that were to be delivered in the next financial year have been deferred.

These include widening the Great Lake Pathway between Rainbow Point and the southern end of Secombe Park ($4.2 million), a Taupō wastewater solids filtrate treatment project ($3.24 million) some erosion control work ($500,000), community heritage space development at Taupō Library ($150,000) and removeable bollards at Roberts St, Taupō ($168,000).

Taupō District Mayor John Funnell says that while looking for areas where costs could be cut, councillors were mindful that community feedback on the Long-term Plan 2024 to 2034 was that council should focus on delivering essentials like roads, water, wastewater and rubbish, while also looking after the district’s parks and reserves, customer services, venues, sportsgrounds and libraries.

Because of that, the key commitments in the Long-term Plan that focus on essential services, such as water treatment plant upgrades, will still be delivered under this Annual Plan.

“We’re hearing loud and clear from the community that affordability is front of mind and we know that 6.6% is still higher than people would like.

“However, the unpalatable truth is that it can’t be brought down further without deferring or cancelling essential work that we’re committed to delivering.”

Major projects planned for the upcoming financial year include a new Hatepe water treatment plant, an upgrade to the Centennial Drive water treatment plant, and a transfer station upgrade at the Broadlands Rd Resource Recovery Centre.

As well as the rates increase, fees and charges for council services have risen by an average of 3.5%.