Your rates explained 2025

Tēnā koe, i roto i ngā mihi o te wā. 

As your regional council, Horizons is dedicated to safeguarding the natural environment, supporting resilient communities, and managing the region’s resources responsibly. The rates you contribute are essential to delivering the services and infrastructure that underpin our collective well-being – now and into the future. 

Your rates help us: 

• Invest in flood resilience, erosion control, and emergency response planning to help communities adapt to more frequent and severe weather events. 
• Manage key regional assets such as river management infrastructure, public transport networks, and environmental monitoring systems that support both safety and sustainability. 
• Support sustainable land management practices that protect soil health, reduce sedimentation in waterways, and enhance biodiversity across our landscapes. 

This work is critical to maintaining the health of our environment, the strength of our economy, and the safety of our communities. Every dollar you contribute through rates is an investment in a more resilient, sustainable, and thriving region. Thank you to those who took the time to provide submissions to this year’s Annual Plan. Council took all feedback in mind when considering where to prioritise the budget for the upcoming year. 

This year, the total rate increase across the region will be 8.8%. While this figure serves as an overall indicator, individual rate increases will vary from district to district and from neighbour to neighbour. These variations depend on factors such as river schemes, biosecurity, passenger transport services, and recent changes to property values, particularly in Palmerston North where revaluations have been recently completed. 

We understand that any increase in rates could be challenging for some households. That’s why we’ve worked hard to strike a careful balance – ensuring we can continue delivering the essential services and long-term projects our region needs, while keeping affordability front of mind. 

Below, you’ll find: 

• an explanation of how our rating system works, and 
• highlights of key work programmes and initiatives happening across the region. 

Thank you for your contribution towards caring for our vast and varied region. Together, we’re investing in a safer, more sustainable future for our region. 
 

Ngā mihi nui, 
 

Rachel Keedwell
Chair 

How are rates decided?

We’re working across all our region’s seven districts to make our place a healthy environment where people thrive. To achieve this, we have identified key priority areas and community outcomes to guide us. 

Our priority areas are: 

• Building resilience to the impacts of climate change. 
• Strengthening partnerships with tangata whenua. 
• A holistic approach, from the mountains to the sea (integrated catchment management). 
• Connecting people and place through effective public transport connections. 

Budgets are then determined by what’s required to achieve Council’s goals. Factors such as revaluations and inflation also play a role. 

While the region’s overall rate increase is 8.8%, individual rates will vary depending on property revaluations and specific regional council services provided to each property. 

This means every year the districts that have property revaluations contribute more to the pool of revenue needed. However, over time this balances out as every district goes through the revaluation process at some point. This year, residents in Palmerston North can expect their rates to reflect recent property revaluations. 

How rating works per property

Each property will have different rates depending on where you live and the services you receive. Your rates invoice is made up of targeted rates, common rates and general rates.

Targeted rates are the ones that relate to certain work being undertaken in your area, but not somewhere else. For example:

• Ruapehu – the district-wide river scheme to protect people and property. 
• ​Whanganui – increased levels of service on the public transport network to provide wider coverage of the city, more frequently. 
• Rangitīkei – ongoing management of the pest plant Old Man’s Beard which is a threat to native biodiversity. 
• Manawatū – management, including pest control and biodiversity, of Tōtara Reserve Regional Park, our region’s only Regional Park. 
• Palmerston North – improvements in flood resilience through the lower Manawatū Scheme to keep people and property safe. 
• Tararua – district-wide river and drainage scheme for maintenance and improvements to flood resilience assets to protect productive land. 
• Horowhenua – Arawhata wetland construction to improve water quality of Punahau Lake Horowhenua, and Waikawa Beach dune restoration. 

• The Sustainable Land Use Initiative (SLUI) which improves water quality and flood resiliance for the whole region.
• Environmental initiatives which part-fund biodiversity and biosecurity work that benefits everyone.

Finally, general rates are also applied to all properties but are calculated off capital value.

Horizons receives its income from a number of sources including grants and subsidies, investment income, user fees and charges, loans and reserves, and rates.

Understanding the rate increase 

Council has worked hard to keep rates increases to a minimum. Savings have been made to insurances and the number of additional positions proposed in Year 2 (2025-26) of the 2024-34 Long-term Plan reduced considerably. Council has also used reserves where possible to help keep the rates impact down. 

Based on the work programmes planned for the year, an additional $5.7 million in rates revenue is what’s required for Council to continue to do its core business. This equates to an 8.8% total rate increase across the region for the 2025-26 financial year. As part of Council focussing on prioritising core business, the total rate increase has been made up from a number of conservative increases including: 

• Additional funding for possum control operations which cover more than 1.5 million hectares or about 75% of the region. 
• River management and drainage maintenance and repair work. 
• Additional funding for biodiversity work through the Horizons Priority Habitats programme. 
• Additional funding for pest plant management including Old Man’s Beard. 
• Mapping to understand highly productive land in the region. 
• Increased levels of service for Whanganui public transport. 
• A handful of roles to support our emergency management, policy, science and compliance functions. 

As we’ve noted elsewhere in this publication, your individual rates invoice may differ to this total rate increase as rates change between districts and neighbours. This is because some areas have targeted rates for activities such as public transport or flood resilience. 

Want to know more?

Head back to the Property & Rates page to find out key dates, ways to pay your rates, see what the rates for your property will be, and frequently asked questions.