Three years of double-digit average rate increases are being attributed by regional councils to cost increases, inflation and extra obligations required by central government.
They also warn that despite councils increasing by 1000 their combined personnel head counts in the past five years, central government and community expectations mean those head counts will increase further.
The Taranaki Regional Council said its largest increase in expenditure has been in resource management, biosecurity and biodiversity, which was driven by government regulation and policy and resulted in an extra 15 staff being employed.
The council consulted with ratepayers to determine priority areas of work, it said.
Its long-term plan shows rate increases returning to single figures in 2027-28 and to just over 2% from 2028-29.
Northland Council said elected members and staff found more than $1 million in savings for this year in the area of natural environment.
Ratepayers rejected proposed cuts to council contributions to emergency services and regional sporting facilities, which would have reduced the rate rise by 4.98%.
The inclusion of these pushed this year’s increase to 15.94%.
The council has not reduced staff numbers, saying they are needed to deliver the work demands of central government and the Northland community.
Savings by the Greater Wellington council reduced its 37.3% draft rate rise to 20.55%.
Those savings come from delays to capital projects, leaving positions vacant, cutting costs and extending the length of borrowing terms.
Rate rises are expected to return to single figures in 2028 and to reach 2% or below from 2032.
Bay of Plenty has reduced operating costs by between $4.5m and $5m through efficiency initiatives and sharing services.
According to it council, inflation and increased government requirements, especially in the environmental and freshwater areas, increased its operating budget from $133m in 2018-19 to $200m in 2024-25.
The Hawke’s Bay council found savings in operational and non-regulatory areas by deferring some projects, and it said it is addressing staffing levels by reviewing vacancies.
Its work programme in the current year relates largely to post-Cyclone Gabrielle, transport and flood protection and control.
The Waikato Regional Council has determined current staffing levels are appropriate but has restricted the replacement of some roles.
Higher expenditure has been driven by increased costs in flood protection, catchment management and public transport, including rail service to Auckland.
It estimates that inflation, outside its control, last year equated to 5.7%.
The council cancelled a sustainable homes scheme to reduce costs.
Horizons Regional Council found savings that reduced the rate burden from 12.9% to 11.7% and it has limited new staff hires to what is needed to meet regulatory and compliance standards.
It expects higher future expenditure on public transport, as demand grows, and on meeting regulatory standards.
The 2025-26 rate rise is expected to be 12% and 9% the following year.
Environment Canterbury has adopted a $337m work programme that resulted in a 17.9% rate increase, smaller than the 24.2% initially proposed due to efficiencies.
Public submissions encouraged increased spending on river resilience, flood management and pest and weed control.
The West Coast council has a significant workload in areas such as flood protection for Westport, but it is aware of the compounding risk of underinvesting in capital works.
After this year 27% rate increase, it is forecasting a 12% rise next year.
The council is also bringing more roles in-house instead of employing contractors.
The Otago Regional Council softened its rates burden by increasing its use of debt and reserves, extending debt repayment, and is projecting an increase in dividend payments from Port Otago, of which it is a sole shareholder.
Its extra workload has been in public transport, which increase $17m between 2018-19 and 2024-25, science and monitoring ($10m increase), regulatory ($7.4m), environmental implementation ($7m), and flood, drainage and river management ($6m).
Environment Southland has capped staff numbers after an effectiveness and efficiency review.
Using reserves and changing the timing of work has enabled a softening in the rate increase.
Between 2018-21, freshwater changes generated the council’s greatest increase in workload while from 2021 to 2024 it was climate change resilience, specifically improving flood defences.
A council statement noted there had been no capital investment in flood protection work for 30 years and the council expected that to continue into the future.
