Toi Moana Bay of Plenty Regional Council has achieved a more moderate rates increase than projected for its Annual Plan 2025/26 through reviewing budgets, considering affordability concerns and adapting to changing economic conditions.

The Annual Plan 2025/26, which was adopted on Tuesday, sees a $7.3 million reduction across the budgets, resulting in a 3 percent general rate increase for ratepayers.

Increases and decreases will vary between targeted rate types with an estimated average annual increase per ratepayer of $11.

The budgets for year two (2025/26) of the regional council’s Long-Term Plan 2024-34 were anticipating an 8.2 percent increase to general rates and a 6.3 percent increase to targeted rates.

However, with a changing economic climate and shifting direction from Central Government, regional council recognised the need to address rates affordability, while still delivering on the essential services required by local communities.

Chair Doug Leeder, pictured, said the focus was to deliver the work programme set with the community through the long-term plan in a fiscally responsible way.

“In the current environment, the challenge for councils is to achieve a balance between affordability and continuing to deliver the levels of service agreed upon with our ratepayers.

“We believe that this annual plan strikes the right balance between managing debt, keeping rates affordable and continuing to sensibly manage our infrastructure, while delivering the levels of service that the community expect from us.”

Through the annual plan, an operating expenditure of $195 million has been set to ensure continued investment into the regional council’s core services. This includes:

n Public transport planning and operations through the bus network

n Restoration and enhancement of the region’s natural resources through land management, biosecurity, climate change adaptation, and freshwater monitoring and management

n Flood resilience and natural hazards risk management

n Regulatory compliance and resource consenting.

Mr Leeder said while the operating environment was dynamic and ever-changing, the regional council remained committed to its critical work that benefits local communities.

“Many of the decisions we make now are for today, tomorrow and beyond. The focus of this annual plan is to deliver both immediate and future benefits, ensuring that our services are provided in the most efficient manner possible.”

The annual plan was developed through a series of councillor workshops over the past six months with no formal community consultation held.

Under the Local Government Act 2002, councils are required to consult on the Annual Plan only if there are significant or material differences from the long-term plan (according to the Significance and Engagement Policy).

While cost savings have been identified, the annual plan remains consistent with the overall financial and strategic direction set out in the long-term plan 2024-34, so consultation was not required.