FAQs
$60,000 for local election and Māori Ward referendum costs. (new cost)
Asset maintenance and consent costs for the Kāwhia and Aotea seawalls.
$50,000 to begin implementing the Climate Change Response Plan.
$58,010 to support the Ōtorohanga Museum through the Historical Society. (new cost noting $35k of this is being repurposed from another budget)
Funding to begin development of the next Long Term Plan (2027–2037).
Higher depreciation costs due to new capital works and increased asset values.
Inflation across wages, materials, and contracts.
Why are my rates increasing again this year?
The increase is part of Council’s steady plan to restore financial balance after intentionally reducing rates in 2024/25. That earlier reduction was made possible by deferring some costs and underfunding depreciation, but those shortfalls must now be addressed to keep essential services running reliably. The Long Term Plan signalled a rate increase this year of xxx where we landed was 10.16% overall.
What are the main costs this year driving the rates increase?
Key drivers of the 10.16% overall rates increase include deliverables signalled in the Long Term Plan and new costs:
What’s happening with the Ōtorohanga water rates? Why the 16% increase?
The proposed increase is about aligning revenue with actual costs to deliver treated water, nothing more. It covers treatment, compliance, infrastructure maintenance, and operations. Previous years underfunded this service, and continuing to do so would create new deficits (estimated at $40,000 if the increase is not applied).
Note: we may need to adjust for Council decision on Community Board recommendation.
Why didn’t you consult us again?
Because the changes from the LTP weren’t significant enough to trigger a full public consultation. But we still had open workshops, and the plan builds on feedback from the community during the LTP process.
What happens if we don’t increase rates?
Services like water supply, wastewater, roading, and community facilities become underfunded. That could mean deferring repairs, reducing service levels, or borrowing more in future, putting more burden on future ratepayers.
Why is depreciation such a big issue?
Depreciation is how we plan and save to replace essential assets like pipes and roads. In 2024/25, Council funded only 50% of depreciation for some assets. In 2025/26, we’re moving to 75% funding as a step toward full financial sustainability.
What has changed for Kāwhia and Aotea this year?
Maintenance and consent costs for the seawalls have increased, which affects rates in these communities. In response, a single targeted rate was introduced in 2024/25 for all three seawalls, spreading the cost more evenly across Kāwhia and Aotea.
Why does the Climate Change Response Plan need $50,000 now?
In 2024/25, we used one-off funding to begin this work. From 2025/26, it becomes a core activity funded through rates to ensure its sustainability and progress in reducing environmental risks.
Is this level of increase going to continue every year?
No. The increase this year reflects specific pressures, including returning to proper asset funding and addressing delayed costs. Future years are projected to have lower increases, assuming inflation and other pressures remain stable.
How does Ōtorohanga compare to other districts?
Even with this increase, our average rates remain among the lowest in the Waikato. Council continues to be cautious and deliberate in how it balances community expectations with affordability.