Council holds to 6.7% rate increase despite higher costs

Far North District Council has adopted its Annual Plan which includes an average rates increase of 6.7 per cent for this financial year – the figure promised in the Long Term Plan 2027-37.

The decision to adopt the 6.7 per cent increase was made during the council’s 25 June meeting and followed a long debate on alternative options and possible impacts for ratepayers already struggling with higher costs.

During the meeting, councillors heard that the proposed average rates increase was initially much higher at about 16.5 per cent. However, this was reduced to 6.7 per cent after finance staff conducted more than 80 meetings with council teams and shaved $12.1 million from budgets.

Councillors were also asked to consider a proposal to adopt a higher 7.68 per cent average increase. This option was to fund significantly higher (and as yet unknown) fuel related costs caused by international events. Councillors were warned that by not rating to cover higher operating costs, the council may have to borrow to cover any shortfall. If fuel prices fell sooner than predicted, unspent funds would be used to reduce council debt. The proposal was eventually rejected with several councillors arguing that increasing rates for households when not absolutely necessary should be rejected.

With the Annual Plan 2026/27 now adopted, the council’s focus turns to the next 10-year plan for 2027 to 2037. The Long Term Plan 2027-37 (LTP) will be an opportunity for all residents and elected members to consider how the council continues to fund roads, pipes and other infrastructure, the impact of moving water and wastewater services to Northland Water Limited in 2027, and responds to government plans to introduce a cap on rates. Public consultation on the next LTP will be undertaken in phases beginning later this year and continuing in 2027.

Ratepayers are reminded that 6.7 per cent increase in rates is an average. Individual rate invoices may be higher or lower depending on the value of their property. Most land values across the district have fallen, according to recent revaluations undertaken for the council by Quotable Value NZ. However, a lower valuation does not automatically mean a decrease in a rates bill. Property owners are advised to look up their property on the FNDC Rating information database to confirm the correct figure.

Anyone experiencing financial hardship and difficulty paying their rates is reminded to please contact the council. There is help available, including the government rates rebate, payment arrangements, and in some cases a remission. The sooner you make contact, the more staff can do to assist.