Bay of Plenty Regional Council Announces Reduced Rates Increase for 2025/26

The Bay of Plenty Regional Council has announced lower-than-expected rates increases for the 2025/26 year, aiming to ease pressure on households while continuing to deliver essential services. The changes come in response to economic uncertainty and shifts in central government direction.

The Council has revised its original forecast, now proposing a 3% increase to general rates, which is down from the previously expected 8.2%. Additionally, targeted rates will see an overall 2% reduction, reversing a projected 6.3% increase. The specific impact will vary across different targeted rate categories.

A $48 million dividend from Quayside Holdings, the Council’s investment arm, is also helping to offset household rates, resulting in an average saving of around $400 per ratepayer. Taking all changes into account, the estimated average annual increase per ratepayer will now be just $11 (including GST).

These decisions come after months of internal budget reviews, with the Council cutting or delaying spending where feasible. In total, the Annual Plan 2025/26 reflects a $7.3 million reduction in planned expenditure.

Council Chair Doug Leeder said the focus remains on delivering essential services in a fiscally responsible way.

“In the current environment, the challenge for councils is to achieve a balance between affordability and continuing to deliver the levels of service agreed upon with our ratepayers,” said Leeder. “We believe that this Annual Plan strikes the right balance between managing debt, keeping rates affordable and continuing to sensibly manage our infrastructure, while delivering the levels of service that the community expect from us.”

Despite the cost reductions, the Council will maintain a $195 million operating expenditure for the year to support critical services. These include:

• Public transport operations via the regional bus network

• Restoration of natural resources, including biosecurity and climate change adaptation

• Flood resilience and natural hazard risk management

• Regulatory compliance and resource consenting

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“Many of the decisions we make now are for today, tomorrow and beyond,” said Chair Leeder. “The focus of this annual plan is to deliver both immediate and future benefits, ensuring that our services are provided in the most efficient manner possible.”

Some notable savings included in the plan are:

• Public Transport: $3.87 million saved after government subsidy reductions led to a scaled-back programme.

• Freshwater Management: $370,000 delayed due to pending updates to national freshwater policy.

• Flood Protection: $280,000 saved through reduced loan costs supported by central government funding.

• Rotorua Catchments: $800,000 in funding for the Ohau Wall rescheduled to the following financial year.

• Corporate Efficiencies: $627,000 saved through improved financial oversight, reduced interest payments, and IT system refinements.

  
  

The Council emphasized that while cost savings were necessary, the Annual Plan remains consistent with its long-term financial and strategic goals.