Whakatāne District Council’s draft 2025-26 Annual Plan budget will be presented to the Mayor and councillors tomorrow, outlining a budget that keeps costs down while still investing in the district’s future.

The annual plan paper also seeks the approval of councillors not to consult on the budget because there are no significant changes to the forecast work programme for the coming year.

The council says it will share information with the community to explain key decisions on the direction of the plan’s budget and activities.

Chief executive Steven Perdia said the draft budget focused on financial responsibility while keeping the district moving forward.

"We’ve worked hard to achieve a 2.2 percent reduction in the proposed operating expenditure for year two of the Long-Term Plan (2025/26) while still delivering essential services and investing in the future.

"The draft budget now proposes an average rate increase of 11.7 percent, down from the 12.7 percent forecast for year two of the Long-Term Plan, with the savings helping to reduce the council’s deficit (the gap between income and expenses) faster," he said.

“We’re putting 1.2 percent of the identified savings towards reducing the amount we need to borrow. Every $1 million less in borrowing saves ratepayers nearly $300,000 in interest over 10 years.”

Another key component of the proposed budget is shortening the loan repayment term from 25 years to 10 years, saving $24 million in interest costs over time.

"It’s like a household mortgage, paying it off faster reduces interest costs and puts us in a stronger financial position for the future," Mr Perdia said.

"Elected members have been clear, we need to get out of the operating deficit, where everyday costs are exceeding our income.

“That means keeping costs under control, finding new revenue streams, and making sure every dollar is well spent. At the same time, we must keep investing in key areas like infrastructure and economic growth, so our communities remain strong and resilient," Mr Perdia said.

The finalised annual plan will be adopted in June.