Savings reduce impact of rising costs for ratepayers

Far North District Council has adopted a 10.95 per cent rates increase for the 2025/26 financial year, the second time it has delivered increases below those originally forecast.

Last year, the council delivered the lowest increase of any council in the country at 4.5 per cent, significantly less than a 16.5 per cent increase the council initially consulted the public on.

During a 25 June Extraordinary Meeting to adopt the 2025/26 Annual Plan, councillors confirmed a 10.95 per cent average rates increase, down from the 11.3 per cent forecast in its 2024-27 Long Term Plan.

The 10.95 per cent figure is an average. Rates levied on individual properties will vary according to the services provided. For example, targeted rates may apply to a particular area only (e.g. wastewater or stormwater targeted rates), and the portion levied by Northland Regional Council will also affect individual rates. Northland Regional Council has confirmed its rates will rise by 3.54 per cent for the financial year – an increase of $19.19 per rates bill on average over the next year.

In setting rates for 2025/26, council staff closely reviewed budgets and achieved cost reductions on day-to-day operations. Savings were also identified in the capital works programme (repairing existing assets and building new ones). However, this was not enough to counteract significant cost increases outside of the council’s control. Those included increased costs to operate and maintain council assets; inflation of 2.4 per cent contributing to higher costs for goods and services; and a 1.3 per cent increase in interest payments due to higher borrowing costs and increased debt to fund capital projects such as storm damage repairs. Infrastructure projects prioritised by the Long Term Plan also saw some staff costs increase. This partially offset a reduction in external professional costs.

Taken across the three years of the 2024-27 Long Term Plan, the average rates increase over that time will be 8.1 per cent. That includes 4.5 per cent in the first year (2024/25), 10.95 per cent for 2025/26 and a projected 6.7 per cent increase in 2026/27. This is comparable to, or lower than, councils around the country with similar geographic and population sizes.

During the Extraordinary Meeting, Kōwhai Deputy Mayor Kelly Stratford highlighted more than 20 projects successfully delivered by the council over the past 18 months. Those include funding for Te Hiku Sports Hub and Papa Hawaiki - Kaikohe and Districts Sportsville, and the opening of Te Puāwaitanga Bay of Islands Sports Hub; the desludging of wastewater treatment plants and improvements to Rāwene Wastewater Treatment Plant; ongoing roading upgrades and slip repairs (a key focus of our 2024-27 Long Term Plan); the upgrade to the Ōpua to Paihia walking track; adoption of Te Pātukurea - Kerikeri Waipapa Spatial Plan, and the near completion of the Taipā Placemaking Project to name a few.

The new figure will be included in rates due on 20 August. Property owners can find out exactly how much they will pay by entering their address into the online Rating Information Database. This will include the 10.95 per cent rates increase from Wednesday 2 July.

You can read the full 2025/26 Annual Plan here.