Rates reality sets in
The Recycle-o-saurus’, dinosaur themed exhibition opened last weekend at Taupō Museum and Art Gallery. Find out more on page 7. A community heritage space at the museum is one project that could be deferred as the council looks for ways to keep rates increases down. Photo: Dan Hutchinson
Several projects could be delayed, some destination marketing plans put on hold and other spending cuts are proposed as the Taupō District Council ponders how it will keep a lid on rates.
At a full meeting of the council on Tuesday last week, elected members confirmed the draft financial direction for the 2026/27 year, which comes with a proposed average rates increase of 6.6%.
Taupō Mayor John Funnell says they will continue to go through expenditure line-by-line in an effort to further reduce rates.
However, the sharp rise in oil prices because of the war in the Middle East could yet force rates to go even higher before the final 2026/27 annual plan is adopted on June 30.
The rates increase is significantly influenced by increased costs of water services with higher central Government standards meaning upgrades are required in some areas.
Increased water costs make up $3.2 million of the $7.3 million increase in money required from ratepayers. Other council services account for $4.1 million of the increase.
Everything is in the firing line, but the council has identified several things that could be delayed to save costs.
The district’s marketing organisation Destination Great Lake Taupō had its funding cut by $400,000 in the 2025/26 annual plan to save money. That was meant to be for one year only but could now be extended by a further two years.
It is also proposed to defer several planned projects for one year, including a $4.2 million project to extend the Great Lake Shared Pathway, Project Watershed Erosion Control - $500,000, Roberts Street Removable Bollards - $168,000, Parakiri/boat harbour parking area – $163,000, and a Community heritage space development at Taupō Library - $150,000.
Funnell told Taupō & Tūrangi News he was not happy with the 6.6% proposed increase although it is 0.1% lower than that forecast in the 2024/34 Long term Plan.
“You know, I am fully aware of people in the public out there who are struggling financially already at the current situation, let alone facing a 6.6 projected increase and there's a number of us around the council table are saying we need to look at the costs that drive that and what can we do to reduce those.
“But I can't make any promises particularly in light of the current environment we're facing with the fuel crisis.
“We want to see it lower because, you know, I stood for alignment with inflation. Well, I've had to learn that that's probably unrealistic.”
He says the council “heard clearly” from the community that cost of living and rates affordability mattered and that is “front of mind” as they work through decisions.
“Getting to a 6.6% increase hasn’t been easy. It’s required some careful choices about what we can deliver in the short term, and where we can slow things down or manage risk, rather than pushing costs onto ratepayers.”
Council policy advisor Andrew Wilson, in his report to a March 31 meeting of the full council says without changes to operating assumptions and budgets in the 2024-2034 Long Term Plan, the rates increase would have been 7.7%.
He says while rates caps have been widely discussed in the media, no legislative cap is currently in place, and none applies to the 2026/27 Annual Plan.