Whakatāne District Council Adopts Annual Plan With 9.1% Rates Increase

Whakatāne District Council has adopted its Annual Plan for the 2026/27 financial year, confirming an average rates increase of 9.1% after finding additional savings across the organisation.

The increase is lower than the more than 11% rise projected in the first draft of the plan and slightly below the 9.4% forecast in the council’s Long Term Plan.

Councillors approved the Annual Plan at a council meeting on Thursday, 25 June, following months of budget reviews aimed at reducing costs while addressing ongoing financial pressures.

Mayor Nándor Tánczos acknowledged the impact the increase would have on households already facing rising living costs.

“A 9.1% increase is not something anyone would choose lightly,” he said. “We know this increase won’t be easy for many people.”

Tánczos said councils across New Zealand were facing significant cost increases, with many expenses rising faster than general household inflation.

The Annual Plan serves as a yearly update to the council’s 10-year Long Term Plan, allowing adjustments to account for changing economic conditions while maintaining the strategic direction previously agreed with the community.

The 2026/27 plan does not include major changes to service levels and largely retains the council’s existing work programme.

However, some projects have been delayed or reprioritised to better match available funding and delivery capacity.

Council staff identified approximately $4 million in savings through a detailed review of budgets.

Measures include using part of the government’s waste levy funding to offset the cost of household kerbside recycling, reducing pressure on rates.

Rather than directing most of the savings towards further reducing rates, councillors opted to use the majority of the funds to lower the council’s operating deficit and limit additional borrowing.

Tánczos said the council had been spending more than it earned and relying on debt to bridge the gap.

“We could reduce rates further this year, but that would come at a cost later through higher debt and increased interest,” he said.

Part of the savings package has also been set aside as a contingency fund to help manage unexpected cost increases, including fuel, insurance and construction expenses.

Any unused contingency funding will be applied to reducing the council’s operating deficit.

The council said the approach is intended to strengthen its medium-term financial position while maintaining services and avoiding larger rates increases in future years.

The Annual Plan continues under the theme Kia mau ināianei, kia ita āpōpō — Steady now, strong into the future, as local authorities prepare for possible reforms to local government funding, including the prospect of rates caps.

The first rates instalment for the 2026/27 year will be due on August 21, 2026. Ratepayers who pay their annual rates in full by that date will receive a 2.5% discount, provided any outstanding rates and penalties are also paid.

The council is encouraging residents experiencing financial hardship to contact staff early to discuss support options, including payment plans and rates rebate assistance for eligible households.