Rates options for the Annual Plan 2026-27

Option A would halve the overall general rates increase originally planned in the Long Term Plan for next year from 10.1% to 5%.

No adjustments would be made to the share of rates across different sectors, and we would aim to keep all levels of service the same as what was set in the LTP.

This would be achieved through a combination of efficiencies and debt.

Advantages

• Lower rates increase than previously planned in the LTP.
• Maintains current levels of service.
• Makes no changes to the sector shares so any rates increase is shared equally across all sectors.

Disadvantages

• Creates a $6 million revenue shortfall - we'd use efficiencies and borrowing to cover this. This shortfall will continue through the rest of the Long Term Plan.
• Will delay our goal to cover costs without borrowing (i.e. achieve our everyday funding and balanced budget benchmarks).
• Increases future funding pressures.

Option B also lowers the overall rates increase planned in the Long Term Plan to 5% but changes the sector shares (who pays what) to provide businesses with more support.

How do sector shares work?

There are three different rating sectors across which general rates are allocated. These are:

• Residential, lifestyle and other
• Commercial and industrial
• Rural

The share of total rates to be collected from each sector is termed the "sector share’.

Proposed changes under Option B

Under Option B, sector shares are proposed to be changed.

• Residential: increase in share to 68.5% (from 67.3%)
• Rural: increase in share to 8.8% (from 8.6%)
• Commercial and Industrial: decrease in share to 22.7% (from 24.1%)

Under this option, proportionally less of the rates increase is allocated towards the Commercial and Industrial Sector, with the other sectors facing proportionally greater rates increases.

The impact on individual ratepayers in different sectors will vary.

Advantages

• Lower rates increase than previously planned in the Long Term Plan.
• Maintains current levels of service.
• Provides support to local businesses.

Disadvantages

• Creates a $6 million revenue shortfall - we'd use efficiencies and borrowing to cover this. This shortfall will continue through the rest of the Long Term Plan.
• Will delay our goal to cover costs without borrowing (i.e. achieve our everyday funding and balanced budget benchmarks).
• Increases future funding pressures.
• Changing sector shares in favour of businesses means residential and rural ratepayers will face a proportionately higher rates increase.

Option C proceeds with what the 2024-34 Long Term Plan set for 2026-27. This would see an average 10.1% general rates increase for everyone.

The increase was set back in 2024 to help work toward closing the gap between Council's income and expenses.

Advantages

• A stronger financial position for Council with less risk of budget shortfalls and less reliance on borrowing.
• Allows us to stay on track with current financial and infrastructure strategies, including Council's target of working towards achieving our everyday funding benchmark.
• Maintains current levels of service.

Disadvantages

• Greater financial pressure on ratepayers.