Draft Annual Plan 2026-27
Consultation has concluded. We'll have updates here as Council works through finalising the Annual Plan.
We are in year three of Hutt City Council’s 10 Year Plan 2024-2034, which sets out the services and projects we will fund over the next decade.
Financial pressure on ratepayers, Government direction on rates capping and upcoming legislative changes have highlighted the importance of the work we’re already doing to contain rate increases for our communities.
In February 2026, Hutt City Council approved Adjusting Our Sails, a target operating model report that responds to dealing with the unprecedented change facing local government. It outlines a programme to reduce Council’s costs to reduce the rates burden, respond to cost-of-living challenges and prepare for rates capping. This will guide our decision-making over the next three years as we engage with our community about service reductions and asset divestment. No decisions have been made at this stage.
This Annual Plan begins charting that new course with ongoing savings and efficiencies, while we develop proposals for future community engagement. It is grounded in careful financial management, ensuring every dollar is aligned to what matters most. These measures, and the transfer of water services to Tiaki Wai, have enabled us to reduce the proposed rates increase to $4.33 per week or $225 per year for an average household.
The overall rates revenue increase of 9.5% (after growth) is less than the 12.9% (after growth) signalled last year. Proposed rates rises vary across the different rating categories.
We want to hear from you about whether this strikes the right balance between affordability, continued investment and meeting the needs and expectations of our communities.
Consultation has concluded. We'll have updates here as Council works through finalising the Annual Plan.
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Our current situation
Share Our current situation on Facebook Share Our current situation on Twitter Share Our current situation on Linkedin Email Our current situation linkMany 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.
Consultation has concluded. We'll have updates here as Council works through finalising the Annual Plan.
