Our current situation

Many strengths to build on

Council has modernised systems, strengthened financial discipline, and invested in digital capability. We are a trusted central government partner and a regional leader in water renewals.

We have tripled our investment in water services over the past few years.

Our people are one of our greatest strengths, supported by strong partnerships with Mana Whenua and constructive regional collaboration.

A difficult economic environment

Cost-of-living pressures continue to increase, placing real strain on household budgets. At the same time, the cost of delivering council services continues to rise.

Council operates as a lean organisation, with fewer staff and less spending than comparative councils on both a per/household and per/resident basis. We have made savings of $55 million recent years as part of the 10 Year Plan and Annual Plan processes and are implementing smarter, more cost-effective ways to deliver services, including through AI and technology.

In February 2026, Council approved Adjusting Our Sails, a target operating model report, showing we need to save approximately $24 million annually by 2034 to meet the Government’s proposed 4% rate cap. Savings of this scale cannot be made without fundamental changes to the services we provide, and we anticipate reducing the number of assets we own.

Managing our infrastructure and assets

Infrastructure remains one of Council’s most significant challenges. While water services will transfer to Tiaki Wai on 1 July 2026, Council will continue to face substantial infrastructure pressures across transport, community facilities, parks, and resilience assets, with many requiring upgrades.

This Annual Plan prioritises investment in maintaining safety, compliance and service reliability while managing affordability.

Impact of Government reforms

Should government reforms like rates capping go ahead, this would significantly restrict councils’ ability to fund rising costs, renew ageing infrastructure, and respond to growth or climate resilience demands.

The Government is also progressing major changes to the local government system, including the potential amalgamation of local councils and the replacement of the Resource Management Act. Council is engaging constructively with these reforms to ensure they can be implemented effectively while continuing to deliver essential services.

Changing climate and weather events

Climate change is increasing the frequency and severity of weather events. Council is responding by delivering Te Wai Takamori o Te Awa Kairangi (RiverLink), a major project in partnership with Mana Whenua, Greater Wellington and central government. We are also building capacity into our budgets to respond to increasingly frequent weather events.