Annual Plan

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What is an Annual Plan?

An Annual Plan is a document that sets out what council plans to do for the upcoming year and how we will pay for it.

Our Annual Plan includes things like projects, services, budgets, and rates. It’s based on the council’s Long Term Plan (LTP) but is updated each year to reflect any changes or new priorities. Councils ask for community feedback before they finalise it.

Investing in our future, together - Our Annual Plan for 2025/2026

In Ōtorohanga, we care about each other, our environment, and the future we’re building together. When things get tough - whether it's rising living costs, changing weather, or new national rules - we know that staying connected, planning carefully, and supporting each other matters more than ever.

That’s why Ōtorohanga District Council is staying true to the course set in our 2024–2034 Long Term by confirming a 10.16% overall rates increase for 2025/26 forecasted to be 9.76%, that’s a difference of 0.4%. We understand this decision comes during financially challenging times for many in our community. It wasn’t made lightly. It reflects our shared commitment to keeping the lights on, the water safe, and our roads and coastlines cared for, both now and for future generations, all while managing the increasing costs imposed by central government legislation.

Why are rates going up again?

When the Long Term Plan was developed in 2024, Council deliberately took steps to reduce the impact of rates increases in the first year. Those steps included using one-off funding sources and reducing the amount collected to fund depreciation. These choices helped ease pressure temporarily but shifted some costs into later years.

This year is about restoring financial balance and following through on what we said we would deliver.

What’s driving the increase this year?

Several key costs and new responsibilities contribute to this year’s 10.16% rates increase:

  • Election costs: 2025 is a local election year. We’ve budgeted $45k to run the election. The additional $15k for the legislatively required Māori Ward referendum is a new cost.

  • Increased asset maintenance and consent costs for the Kāwhia and Aotea seawalls, following recent investment in coastal infrastructure we budgeted additional $90k on this years $10k.

  • $50k for our Climate Change Response Plan. Previously funded by one-off sources, this now transitions to being funded through rates to ensure long-term implementation, sustainability and accountability.

  • Operational funding of $58k for the Ōtorohanga Historical Society to support the running of the museum, recognising its value to our district’s heritage. This includes $35k of funding redirected from a grant to Creative Waikato budgeted in the Long Term Plan. That’s a new cost of $28k.

  • Long Term Plan review work begins during the 2025/26 year in preparation for the next ten-year Long Term Plan – a project requiring staff, consultation, and specialist support budgeted at $50K

  • Increased depreciation costs, reflecting both a move from 50% to 75% funding for certain assets and capital investment in water and wastewater infrastructure – including projects in Kāwhia and Ōtorohanga. This ensures we’re setting aside funds now to replace assets when needed.

  • Inflation adjustments across almost every aspect of Council’s operations – from materials, wages and fuel to professional services and insurance.

  • Taumata Arowai and Commerce Commission levies of $40k for central governments Local Water Done Well regulation, is the last of the new costs we didn’t know about until after adopting the Long Term Plan.

What if we did less?

We asked ourselves that too. Could we defer more? Cut deeper?

The answer: not without real consequences. Deferrals would weaken vital infrastructure like roads, water supply, and coastal protection. Cutting deeper would reduce services people rely on.

Instead, Council chose to stay the course: to protect what matters, plan ahead, and act with integrity by delivering on the promises we made to you in the Long Term Plan.

“Rates are always a balancing act between today’s affordability and tomorrow’s needs,” says Mayor Max Baxter. “We’re choosing a path that’s responsible and future-focused.”

Looking ahead

We understand this year’s increase is significant however Ōtorohanga still maintains one of the lowest average rates in the Waikato, and every effort is made to keep services efficient and costs under control.

“By investing now – in planning, infrastructure, and community resilience – we’re helping ensure Ōtorohanga continues to be a great place to live,” says Mayor Baxter. “We’re staying steady on the path we’ve set with the community, and we’ll keep listening every step of the way.”

What is an Annual Plan?

An Annual Plan is a document that sets out what council plans to do for the upcoming year and how we will pay for it.

Our Annual Plan includes things like projects, services, budgets, and rates. It’s based on the council’s Long Term Plan (LTP) but is updated each year to reflect any changes or new priorities. Councils ask for community feedback before they finalise it.

Investing in our future, together - Our Annual Plan for 2025/2026

In Ōtorohanga, we care about each other, our environment, and the future we’re building together. When things get tough - whether it's rising living costs, changing weather, or new national rules - we know that staying connected, planning carefully, and supporting each other matters more than ever.

That’s why Ōtorohanga District Council is staying true to the course set in our 2024–2034 Long Term by confirming a 10.16% overall rates increase for 2025/26 forecasted to be 9.76%, that’s a difference of 0.4%. We understand this decision comes during financially challenging times for many in our community. It wasn’t made lightly. It reflects our shared commitment to keeping the lights on, the water safe, and our roads and coastlines cared for, both now and for future generations, all while managing the increasing costs imposed by central government legislation.

Why are rates going up again?

When the Long Term Plan was developed in 2024, Council deliberately took steps to reduce the impact of rates increases in the first year. Those steps included using one-off funding sources and reducing the amount collected to fund depreciation. These choices helped ease pressure temporarily but shifted some costs into later years.

This year is about restoring financial balance and following through on what we said we would deliver.

What’s driving the increase this year?

Several key costs and new responsibilities contribute to this year’s 10.16% rates increase:

  • Election costs: 2025 is a local election year. We’ve budgeted $45k to run the election. The additional $15k for the legislatively required Māori Ward referendum is a new cost.

  • Increased asset maintenance and consent costs for the Kāwhia and Aotea seawalls, following recent investment in coastal infrastructure we budgeted additional $90k on this years $10k.

  • $50k for our Climate Change Response Plan. Previously funded by one-off sources, this now transitions to being funded through rates to ensure long-term implementation, sustainability and accountability.

  • Operational funding of $58k for the Ōtorohanga Historical Society to support the running of the museum, recognising its value to our district’s heritage. This includes $35k of funding redirected from a grant to Creative Waikato budgeted in the Long Term Plan. That’s a new cost of $28k.

  • Long Term Plan review work begins during the 2025/26 year in preparation for the next ten-year Long Term Plan – a project requiring staff, consultation, and specialist support budgeted at $50K

  • Increased depreciation costs, reflecting both a move from 50% to 75% funding for certain assets and capital investment in water and wastewater infrastructure – including projects in Kāwhia and Ōtorohanga. This ensures we’re setting aside funds now to replace assets when needed.

  • Inflation adjustments across almost every aspect of Council’s operations – from materials, wages and fuel to professional services and insurance.

  • Taumata Arowai and Commerce Commission levies of $40k for central governments Local Water Done Well regulation, is the last of the new costs we didn’t know about until after adopting the Long Term Plan.

What if we did less?

We asked ourselves that too. Could we defer more? Cut deeper?

The answer: not without real consequences. Deferrals would weaken vital infrastructure like roads, water supply, and coastal protection. Cutting deeper would reduce services people rely on.

Instead, Council chose to stay the course: to protect what matters, plan ahead, and act with integrity by delivering on the promises we made to you in the Long Term Plan.

“Rates are always a balancing act between today’s affordability and tomorrow’s needs,” says Mayor Max Baxter. “We’re choosing a path that’s responsible and future-focused.”

Looking ahead

We understand this year’s increase is significant however Ōtorohanga still maintains one of the lowest average rates in the Waikato, and every effort is made to keep services efficient and costs under control.

“By investing now – in planning, infrastructure, and community resilience – we’re helping ensure Ōtorohanga continues to be a great place to live,” says Mayor Baxter. “We’re staying steady on the path we’ve set with the community, and we’ll keep listening every step of the way.”

Page last updated: 26 Jun 2025, 02:41 PM