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Kaipara District Council has begun a forensic, line-by-line review of its draft Annual Plan budget as it seeks to reduce a proposed rates increase of 9.9 per cent, or 8.9 per cent once growth is taken into account.
The move follows a request from Mayor Jonathan Larsen for an in-depth examination of costs, with councillors signalling a strong desire to further ease pressure on ratepayers ahead of the 2025/26 financial year.
At Council’s second Annual Plan briefing, elected members were presented with updated figures and asked to agree on the composition of the 2026/27 Annual Plan. This decision is required so staff can notify ratepayers early about potential increases and assess whether the plan meets the statutory “significance” threshold that would trigger formal public consultation.
Mayor Larsen told Mangawhai Focus that the goal was to find as many efficiencies as possible, without compromising services.
“We are analysing every line in our budgets to make sure each piece of expenditure is necessary and delivering the absolute best value possible for our community,” he said. “I know every single dollar counts for households right now, and that’s front of mind as we look for sensible savings.”
He believed expenditure on consultants was one area where saving could be realised.
The current budgeting process sits within the framework of the Long Term Plan (LTP), which was prepared for a shortened three-year period after central government legislation was introduced in response to the impacts of Cyclone Gabrielle. The cyclone significantly affected eight councils nationwide, including Kaipara District Council, prompting changes to planning and funding requirements.
Under the LTP, high rates increases were anticipated in the first two years. Council subsequently agreed to smooth those increases, settling on the current proposed rise of 9.9 per cent. However, councillors have now directed staff to undertake a deeper review of spending with the aim of identifying further savings.
The last comprehensive budget review was four years ago, in 2022, and was followed by targeted reductions in the 2024/25 budget. In that year, Council required staff to cut $500,000 from activity costs and $1.5 million from salary budgets. More recently, the 2025/26 budget included the introduction of a new museum rate, alongside additional staffing such as an animal control officer.
The current review has resulted in a mix of increases and decreases across various sub-activities.
Roading expenditure has been excluded, as it is governed by a three-year funding agreement with Waka Kotahi/NZ Transport Agency and cannot be altered at this stage. Roading capital budgets will instead be reconciled at the next briefing, with current roading rates remaining at the levels set through the LTP.
Council expects the outcome of the review to clarify whether further reductions can be made to the proposed rates increase, while still maintaining agreed service levels and meeting statutory planning requirements.
Draft figures, including what the rates increases will be based on the review and other financial information, will be presented to next month’s council briefing. This is when council will also decide whether it needs to consult with the community.
The Annual Plan for 2026/27 will be adopted at the June council meeting.
