Horizons uses last meeting of 2025 to halve rates impact for coming year

Horizons Regional Council has used its last meeting of 2025 to make decisions to reduce the next proposed average rates increase, keep Ashhurst school bus services running, and continue to protect the economy and the environment from possums.

Council made a series of decisions at a meeting on Tuesday 16 December:

• Signal an intention to work towards an average rates increase of between 4.6% and 4.9% in the 2026/27 financial year.
• Provide funding to ensure school buses between Ashhurst and Palmerston North continue to run.
• Pause work on the proposed new building to replace Palmerston North Regional House.

 
Horizons’ chair Nikki Riley says the proposed average rates increase for the 2026/27 financial year was about 10% before Tuesday’s decisions.
 
“The new Council knew the pace of rates increases was unsustainable, and have acted quickly after October’s local government elections to do something about it.
 
“While work to bring this figure down was underway before central government’s proposals for local government reform and rates capping were announced, this direction of travel aligns Horizons with central government’s desire for councils to move towards the proposed rates cap band.”

The new signalled rates increase would allow for the following:

• Improvements to the Whanganui public transport network as consulted on and decided as part of the 2025/26 Annual Plan process.
• More possum control to cover areas no longer serviced by OSPRI.
• Funding for Ashhurst school bus services.
• Contracted inflationary costs.
• Changes to KiwiSaver contributions.
• Depreciation.

 
“We have halved the signalled average rates increase, while still managing to save Ashhurst’s school buses and keep the pressure on possum populations,” says Cr Riley.
 
Bringing down the signalled rates increase means a range of proposed new roles will not be filled; no additional work programmed for Policy, Science and Biodiversity; the delay of a proposed new regional public transport service and proposed new Horowhenua public transport service; and the removal of an insurance premium increase, says Cr Riley.
 
“If we wanted to make further savings, we would have had to look at reducing our current levels of service.”
 
The average rates increase will be different across districts due to different levels of service and rating revaluations, says Cr Riley.

“Whanganui urban areas will see the biggest rating increase due to additional flood protection work related to Te Pūwaha – the port revitalisation project – and the public transport improvements. Those projects were signed off earlier this year as part of the 2025/26 Annual Plan process.
 
“Full confirmed figures will be available closer to when the next Annual Plan is signed off next year.”
 
Council is aware of the wider context of reforms proposed by central government, including rates capping, resource management changes and regional governance restructure, says Cr Riley.
 
“This is why we have pushed pause on the proposed new build project. We cannot proceed with this until we have more certainty on the proposed reforms.”
 
The reform programme from central government will keep Horizons busy throughout 2026, says Cr Riley.
 
“We are still looking at exactly what resources we will need to implement the reform programme, as this could impact the final average rates increase.
 
“We will be working with other councils across the region during this period of reform, and with central government, to ensure we get the best possible results for those who live in the region.
 
“We want to be a collaborative partner with all stakeholders to ensure we protect our environment, enhance our economy and enable our communities to be the best they can be.”