The median figure means half of residential properties will see a rates increase above 6.9%, and half will see an increase below 6.9%.
Community feedback through an annual plan representative survey and in-person Engaging with Our People events helped shape the final decisions. This included input on community facilities such as pools and libraries, with some opening hours adjusted in response to this feedback.
Across all ratepayers, the gross average rates increase is 7.2%, lower than the 10.4% projected in the council's long-term plan and the 7.5% forecast considered earlier this year, after targeted savings and cost reductions across the organisation.
“We know many households and businesses are under financial pressure, so looking at costs and reducing the rates increase has been a key focus throughout this process,” says Mayor Mahé Drysdale.
“We’ve significantly reduced the rates increase from what was forecast in the long-term plan, and we expect to deliver under-budget for 2025/26, with debt expected to be $202m below long-term plan forecasts.
"That’s the discipline ratepayers should expect from us.”
The council has a responsibility to make prudent financial decisions while delivering on the priorities of the community amid pressure from rising costs, asset maintenance and renewals, debt servicing, and growth in demand for services.
Commercial and industrial growth has helped ease pressure on residential ratepayers. As the city’s business sector expands it broadens the rating base, meaning more commercial and industrial properties contribute to funding city infrastructure and services.
This coming year, commercial ratepayers will have a median 6.8% increase and industrial ratepayers 6.4% - both below the median residential increase of 6.9%, reflecting the proportionally higher contribution from those sectors as the city grows.
The Annual Plan includes investment in key infrastructure, community facilities and growth-related projects across the city, including:
- $2.76m for Mount Maunganui College 50m pool (earlier timing than in the long-term plan)
- $6m new capital as a placeholder for January storm remediation
- $3.9m for the Gate Pa Community Centre.
Chief Executive Marty Grenfell says council staff have been working hard to identify efficiencies, review spending and ensure services can continue to be delivered effectively.
“We're focused on finding the right balance between affordability and maintaining the services and infrastructure that people in our growing city rely on," he says.
"This annual plan reflects a practical and sustainable approach to the year ahead. It enables the delivery of key services and projects while responding to community feedback and financial pressures."