Let’s talk about the draft 2024/25 Annual Plan and what it means for you

As we navigate through challenging times together, I want to take a moment to talk about some critical decisions that will impact our lives now and in the future.

Council has a legal obligation to update its Long Term Plan every three years, but this year, we've taken a one-off offer from the Government to pause this work and focus on a draft 2024/25 Enhanced Annual Plan.

Local government is undergoing extraordinary changes, and we need to gather more certainty around upcoming central government and water legislation before delivering a longer-term plan to communities.

We understand that Council’s current financial projections are not affordable for many ratepayers and community members. That's why the one-year annual plan allows us to reset, work with you to look at potential ways we could lower service levels, explore alternative funding sources, lobby to government for support, or make other savings.

Affordability has been at the forefront of our minds as we plan projects, services, and activities for the short, medium, and long term. We understand the financial strain that higher rates can bring, especially in the midst of a cost of living crisis.

However, it's crucial to recognise that if we want to continue making the Waikato district a liveable and thriving place with connected communities, difficult conversations need to be had about how to do this while working within our means and keeping rates as affordable as possible.

Our costs have increased significantly in recent years, far surpassing the consumer price index. For instance, while our last Long Term Plan projected a 3.5% general rate increase for the 2024/25 financial year, we are now proposing a 13.75% increase in our draft 2024/25 Annual Plan just to sustain essential services and infrastructure and keep things moving.

We are not alone. According to Local Government New Zealand research – the average proposed general rate increase across the country is 15.3%.

The same research indicates essential infrastructure costs have skyrocketed over the past three years. For example, bridges are 38% more expensive to build than three years ago, roads and water supply systems are 27% more and wastewater systems are 30%

Rates, including targeted rates for things like rubbish collection and water services, contribute about two-thirds of the council's overall funding, with the remainder coming from the Government, development contributions and other funding sources. The rise in compliance and regulations imposed by the central government has directly increased costs, particularly in maintaining essential infrastructure like drinking water and wastewater management.

Transportation is a significant contributor to our budget, with funding coming from Waka Kotahi grants (around 51% of our budget). Maintaining our roads, which are vital for commuting, schooling, and economic activities, remains a costly effort.

The future of our district’s water services and infrastructure is another key reason why we’ve moved to an annual plan.

Your water assets (wastewater, drinking water and stormwater), which the Council manages on your behalf, are worth a whopping $729 million. For the next long term plan, we need to better understand new government policies and put plans in place for the delivery of your water services from 2026 and beyond.

Investment in water services and infrastructure will always be necessary to maintain standards and compliance, and prioritise the health, safety and wellbeing of communities. We propose spending $65.5 million on wastewater treatment and disposal, $32.8 million to treat and supply water, and another $17.2 million on stormwater in the next financial year. While these costs may sound high, rest assured we have prioritised projects carefully to minimise the immediate rating impact as much as possible.

Our district faces complex financial challenges and uncertainties. We – you and the Council - must work together to find sustainable solutions and ensure the continued delivery of essential services to local communities.

So, let's have a conversation about the short, medium and long-term future of our district. Please take the time to have your say on the draft 2024/25 Annual Plan from Monday 25 March until 26 April 2024 at waikatodistrict.govt.nz/say-it or contact myself or your Councillor – you can find our contact details here.

Ngaa mihi

Mayor Jacqui