Ratepayers across Wellington region face increases as long-term plans approved

Councils across the Wellington region have signed off their 10-year long-term plans after contentious public debates in recent months over the ever-growing bill for water infrastructure and "unsustainable" rate increases.

Wellington City Council: 'A responsible balance'

Wellington City Council voted narrowly to accept its long-term plan, with nine in support and seven against.

Rates increases will average 16.9 percent for the 2024/25 year and user charges (for pools, parking, dog registration, burials and other services) will also rise.

An extra "sludge levy" will be introduced from 2024/25 and is a further 1.6 percent increase.

Tempers flared during the acrimonious debate on Thursday, with councillors on the right of the political divide deeply unhappy over projected rate rises.

It also exposed schisms within the Green and Labour blocs, with some councillors deeply opposed to the council's plan to sell its one-third share in Wellington International Airport.

However, Mayor Tory Whanau said the plan struck "a responsible balance".

"The decisions we have made over this process deliver the investment needed to help Pōneke continue to be a city where people and nature thrive, while balancing our economic constraints."

The plan included:

• $1.8 billion for water infrastructure
• More than $104 million has been earmarked for the completion of the new Te Matapihi Central Library
• $1.1b is set aside for the transport network, including $115.2m on bus lanes and cycle lanes
• An overhaul of waste management
• Decarbonisation of swimming pools
• Extra funding to pay council workers the living wage
• $500m into upgrading social housing

A new Perpetual Investment Fund will also be created using proceeds from the sale of the council's 34 percent share in Wellington Airport.

Hutt City Council: 'It brings us no joy to increase rates'

Hutt City Council's long-term plan was passed unanimously, with a plan to invest just over $2.7b over the next 10 years.

Rates are set to rise 16.9 percent next year - a weekly increase of $10.81 per household.

Mayor Campbell Barry said the council now found itself "in a perfect storm where our infrastructure needs to be fixed" at the same time as the city was growing.

"You told us you wanted us to invest in water and transport - that's what we're doing. Without this crucial investment over the next 10 years, we put the building blocks of our city at risk.

"It brings us no joy to increase rates at a time where people and families across our city are finding their own budgets stretched. To help offset our rates increase, we have gone line by line through the budget and made some tough decisions to find $38 million of savings."

Of the spend, 60 percent was in water services and 21 percent on transport, including funding for Te Wai Takamori o Te Awa Kairangi (formerly RiverLink).

• Free swimming at council pools for under-10s when supervised by an adult with a Community Services Card
• $2.8m to address water leak repairs in 2024-25, and a further $1.5 million each year from 2025-26
• A capped $12m investment to investigate repairing Petone Wharf
• Rollout of universal water meters

Kāpiti: 'The last thing we want to look at is reducing services'

Kāpiti residents are facing a 17.19 percent rate rise in 2024/25.

Mayor Janet Holborow said the council aimed to reduce debt by $153m over 10 years, so it had set an average rates increase of 7 percent for years two to 10 of the plan.

"I want to reassure our community that we're doing our utmost to reduce our spending where we can, as the last thing we want to look at is reducing services."

More than 9 percent of the increase was for unavoidable everyday costs such as inflation, interest, and depreciation, she said.

An additional 5 percent increase was needed to address a $4.7m shortfall for Three Waters services caused by a change in government policy.

Porirua: 'Difficult decisions'

Porirua City Council has locked in its plan for the next decade and set the rates for the coming year at 17.5 percent on average.

Porirua Mayor Anita Baker said this had been a "very challenging" long-term plan, given delays to water reform, steeply increasing costs for all projects, and failing infrastructure due to historical under-investment.

"We had to make some difficult decisions, including deferring, stopping or reprioritising a number of projects."

Nobody wanted to see rates increases at these levels, but the council could not afford to ignore infrastructure, Baker said.

"For decades, there hasn't been enough spent on pipes and the harbour is paying the price for that now. We have to invest if we want to look after our city and keep it as a place we can all be proud of."

She said systemic change was needed to relieve the burden on ratepayers.

"We're making a record investment in water in this LTP [long-term plan], and it still won't be enough. Things need to change."

Of the city's overall budget, 55 percent would be invested in Three Waters infrastructure.

A new rates-funded kerbside rubbish and recycling collection service will be introduced from 2027/28.

The plan also includes grants for Wellington Free Ambulance, Surf Life Saving New Zealand, Mana Volunteer Coastguard, Wellington Life Flight Trust and Citizen's Advice Bureau.

Greater Wellington: 'Unavoidable rising costs'

Greater Wellington Regional Council rates are going up 20.55 percent next year.

Greater Wellington chairperson Daran Ponter said the plan wove a balance between "unavoidable rising costs and delivering and improving the services communities expect".

"While the council faces significant rising costs, the public have told us that they value core services such as public transport, sustaining regional parks and enhancing life-saving flood defences."

To offset costs, the council had delayed some capital projects, left positions vacant, cut operating costs and was extending the length of borrowing terms.

The council said public consultation supported its intention to acquire and develop bus assets, like depots and charges, and becoming the sole shareholder of CentrePort by buying the stake held by Horizons Regional Council, as well as boosting pest management.