Horowhenua District Council has confirmed a rates increase of 5.8% for the 2026/27 financial year (based on an anticipated 1.7% growth).
Elected members adopted the Annual Plan at a Council meeting last week, following careful consideration of how to reduce pressure on households while continuing to deliver essential services.
The final increase is significantly lower than earlier projections of 10.1% (after growth) outlined in the Long Term Plan (LTP) 2024–2044, and 11.6% (after growth) indicated in the draft Annual Plan 2025/26. This reflects adjustments to strike a better balance between the cost pressures facing ratepayers and the need for Council to remain financially sustainable.
While Council sets the total amount of rates revenue it needs to collect, updated property valuations affect how that total is shared across properties. This means rates changes will vary from property to property depending on how individual valuations have changed relative to the rest of the district.
Rates will be formally set on 24 June 2026.
Residents can find more information about how rates are set and what they fund on our Rating Information section
Mayor Bernie Wanden said affordability remains a key challenge for both Council and the community.
“We know people across Horowhenua are feeling the pressure of rising living costs. That has been front of mind throughout our discussions,” said Mayor Wanden.
“Council worked hard to bring the increase down while continuing to deliver the services our district relies on.”
Council’s zero-based budgeting approach means no financial buffer has been included.
“Zero-based budgeting and thinking differently about how services are delivered has helped keep the rates rise lower this year,” said Mayor Wanden.
“However, if unexpected costs arise, we may need to run a deficit or review service levels. Any such decisions would be made openly and transparently.”
Council acknowledged it is entering a more constrained financial environment and a period of significant change for local government across New Zealand.
“We are moving into a period where tough decisions will be needed,” Mayor Wanden said.
Council is currently undertaking conversations with the community through its Future Fit Roadmap, which will help inform the next Long Term Plan and future direction.
“No decisions have been made, but it’s important we begin talking with our community now,” he said.
“Our focus is on being open about what we do know, what we don’t yet know and making sure local views shape the path forward.”
“We’re encouraging everyone to take part in the Future Fit survey and share their views. This is an opportunity for our community to help shape the future of local services, priorities, and how Horowhenua is governed.”
Have your say on letskorero.horowhenua.govt.nz/futurefit
Mayor Wanden said the Annual Plan strikes a careful balance.
“This decision reflects the need to manage today’s pressures while planning for the future. We remain focused on delivering for our community in a sustainable way.”
“Community input will be critical as these conversations develop. These are important decisions for the future of Horowhenua, and we want to hear what matters most to our community as we navigate the changes ahead.”