Horizons settles on 4.76% average rates increase for 2026/27, seeks feedback on strategic framework for Long-term Plan

Horizons Regional Council is using its Annual Plan to defer a range of projects and roles, reducing the financial burden on ratepayers.

Council is also inviting people to start thinking about what Horizons’ 2027-37 Long-term Plan could look like.
 
At a council meeting on Tuesday, Council voted to make various changes to Year 3 of the 2024-34 Long-term Plan (aka the 2026/27 Annual Plan) which would result in a 4.76% average rates increase across the Horizons Region for the coming year.
 
The Annual Plan will be confirmed and adopted at a council meeting on 30 June.
 
Horizons chair Nikki Riley says Tuesday’s decision is in line with Council’s intention to reduce rates at a time of economic instability and pressure, as well as recognising the uncertainty of central government reform timings and impacts.
 
“Since the new Council was elected in October, we have had multiple workshops and meetings to work through how we could lessen the financial burden on our communities and bring down the original proposed average rates increase of 9%.
 
“We publicly signalled in December 2025 our intention to work towards an average rates increase of between 4.6% and 4.9%. We have been able to get to a number in that range while maintaining current levels of service and despite rising costs in many areas – for example, fuel – which are out of our control.”
 
The increase allows for some new work, such as increased possum control, funding for Ashhurst school bus services, as well as inflation, depreciation and legislated changes to KiwiSaver contributions, says Cr Riley.
 
“We have made savings by deferring a range of new roles, delaying implementing new public transport networks, removing or reducing additional spending for some activities, and using reserves to fund some work.
 
“Making further savings would require reducing our current levels of service, which we are not proposing to do.”
 
The rates increase will different between property types, as well as from district to district, for a range of reasons including what activities are undertaken in an area and revaluations, says Cr Riley.
 
“Council acknowledges any rates rise is not ideal, so we have done what we can to look at the big picture and keep rates as affordable as we can. We will release more detailed figures once the Annual Plan is adopted.”
 
There are risks which come with deferring projects and investment, says Cr Riley.
 
“Those risks include possibly not being able to hit performance targets, and possibly having insufficient resourcing to respond to significant weather events and local government reform. We will need to remain agile when it comes to reprioritisation and considering additional expenditure if those risks become reality.”
 
Council also voted on Tuesday to endorse the draft strategic framework for the upcoming 2037-47 Long-term Plan, says Cr Riley.
 
“The strategic framework is the lens through which we will do all of the work on the Long-term Plan. Making sure this lens is clear and aligned with the way our community sees our work is crucial. 
 
“Our draft strategic framework is centred on a singular vision: Our region where people and land are nourished.
 
“There are four strategic priorities underpinning this vision: Resilience, Stewardship, Prosperity, and Partnerships.

“Council has four community outcomes they wish to work towards as part of the Long-term Plan: Resilient Communities, Healthy Environment, Prosperous Economy, and Strong Relationships.
 
“We are seeking feedback on this draft strategic framework to ensure the community we serve supports this vision for the Horizons Region.”
 
While central government has signalled local government reform, which would see district and city councils amalgamate and regional council functions folded into these new larger councils, Horizons’ Long-term Plan is a valuable piece of work to continue with and for people to contribute to, says Cr Riley.
 
“Council is committed to ensuring our region is ready for whatever governance structures may be put in place during the local government reform process. Creating a clear long-term plan, with strong input from our community, will ensure regional services are delivered in a way which delivers on the vision of a region where people and land are nourished.”
 
For more information on the Long-term Plan process, and to give feedback on the draft strategic framework by the end of July, see https://haveyoursay.horizons.govt.nz/ltp2027-37.

More details on rates changes and how they were achieved

The 4.76% average rates increase allows for the following:

• Contracted inflation only
• Depreciation increases for additional assets
• Changes to Kiwisaver contributions
• Whanganui Passenger Transport service improvements
• Organisational electronic contents management project recovery
• Additional possum control
• The new Ashhurst school bus service
• Offset by savings in reduced Infrastructure Insurance premiums.

• delay the implementation of the new Regional Passenger Transport bus service to Year 1 of the 2027-37 Long-term Plan at a proposed rate increase of $700k;
• delay the implementation of the new Horowhenua Passenger Transport bus service to Year 1 of the 2027-37 Long-term Plan at a proposed rate increase of $300k;
• remove and reconsider the following roles as part of the 2027-37 Long-term Plan:
  • new Transport Team Leader role from the Transport team at a proposed rate increase of $60k (net NZTA funding)
  • new Senior Mātauranga role from the Science team at a proposed rate increase of $100k,
  • new Senior Scientist – Natural Hazards role from the Science team at a proposed rate increase of $112k,
  • new Social Scientist role from the Science team at a proposed rate increase of $100k,
  • new Senior Policy Advisor role from the Policy team at a proposed rate increase of $100k,
  • new Iwi Advisor role from the Policy team at a proposed rate increase of $90k,
  • two new Compliance Officer roles from the Compliance Monitoring team at a proposed rate increase of $90k each,
  • new Senior Compliance Officer role from the Compliance Monitoring team at a proposed rate increase of $100k,
  • new Principal Advisor role from the Compliance Monitoring team at a proposed rate increase of $112k,
  • new Investigator role from the Compliance Monitoring team at a proposed rate increase of $90k,
  • new Consents Planner role from the Consents team at a proposed rate increase of $75k,
  • and new Biosecurity Officer role from the Biosecurity team at a proposed rate increase of $100k.
• removal of the proposed additional spend for Natural Hazards research and monitoring from the Science activity of $50k;
• removal of the proposed additional spend for Land research and monitoring from the Science activity of $50k;
• removal of the proposed additional spend for NPS-Indigenous Biodiversity work from the Policy activity of $100k;
• removal of the proposed additional spend for EPlan work from the Policy activity of $20k;
• removal of the proposed additional spend for the Integrated Catchment Management project of $100k;
• removal of the proposed additional spend for Totara Reserve of $50k;
• removal of the proposed additional spend for Pest Plant Biocontrol programme of $100k;
• removal of the proposed additional spend for Priority Habitats work of $50k;
• removal of the proposed additional spend for Environmental Grants within the Sustainable Land Use Initiative of $100k;
• use of reserves from the Climate Change reserve to fund the Regional Climate Risk assessment of $100k;
• use of General reserves to fund the Horowhenua Wetland maintenance work of $100k, same as Year 2;
• use of reserves in line with funding policy to fund the Regional Pest Management Plan review of $150k;
• reduction in the proposed additional spend for Possum Control in the Biosecurity activity of $100k, from a $250k increase down to $150k increase; and
• the proposed additional spend of $100k for Spatial Planning work was brought forward from Year 3 of the 2027-37 Long-term Plan to Year 2, so there no increase this Annual Plan.