Whakatāne District Council adopted its Annual Plan for the 2026/27 financial year yesterday, confirming an average rates increase of 9.1 percent.

The increase is slightly below the 9.4 percent increase forecast in the Long-term Plan 2024-2034 and significantly less than the 11 percent signaled when the first draft of the plan was presented.

Mayor Nándor Tánczos said it reflected the financial pressures facing both households and councils.

“A 9.1 percent increase is not something anyone would choose lightly. We know this increase won’t be easy for many people. Cost pressures are being felt right across our communities, and rates are part of that.

“But like households, the council is dealing with rising costs across the board and those pressures are significant. In fact, many council costs are increasing at a much higher rate than household inflation. In that context I want to thank councillors and staff for working so hard to find additional savings. This will reduce future costs and put the council in a much better medium-term financial position.”

The plan maintains existing levels of service, with no significant changes to the core work programme, although some projects have been delayed or reprioritised to better align with available funding and delivery capacity.

The council had identified approximately $4 million in savings, including using a portion of waste levy funding to help cover the cost of household kerbside recycling and Tanczos said there had been strong pressure on the council to provide more short-term relief through lower rates.

“We know how tough things are for many households. But the reality is, we’ve been spending more than we earn and relying on borrowing to cover the gap.

“That’s not sustainable and continuing that approach locks in higher costs for ratepayers over time.”

Instead, the council has chosen to apply most of the savings to reducing the operating deficit and limiting additional borrowing.

“We could reduce rates further this year, but that would come at a cost later – through higher debt and increased interest. This is about making responsible decisions now to avoid bigger increases in the future.”

The first rates instalment is due on Friday, August 2`1. Those wish to pay their annual rates in full by that date will receive a 2.5 percent discount.

A range of support options are available, including payment plans and rates rebate assistance for eligible households struggling to pay.