Council holds the line on budget for 2026/27

Waikato Regional Council is holding the line on its work programme for 2026/27, which means public consultation will not be required on its next annual plan.

Budget talks spanned four hours at the 25 February meeting, with affordability remaining top of mind during discussions.

Councillors landed on a draft budget of $157.076 million for 2026/27. This is an increase in total rates revenue from existing ratepayers of 1.4 per cent – lower than the projected 3.4 per cent at the start of the meeting.

Contributing to the reduced rise was a decision to use an unallocated surplus of $2.5 million to offset general rates. While this was a one-off, in making that decision, there was acknowledgement from councillors that doing so might create a funding deficit for the following year.

Waikato Regional Council Chair Warren Maher said, “We’re operating in a period of significant uncertainty, and that makes it even more important to be disciplined in our planning. This draft budget strikes a balance between affordability and ensuring we can continue to deliver the work our region expects of us.

“By taking a conservative approach and using available surpluses wisely, we’ve been able to keep the rates increase well below earlier projections while still meeting our obligations for 2026/27,” he said.

A number of drivers for the rates rise included inflationary pressures, provisions for staff remuneration and meeting the Government’s increased KiwiSaver contributions, as well as $1.3 million in new investments approved through the 2024-2034 Long Term Plan.

In addition, the draft budget includes $550,000 for a business case to investigate options for the replacement of rolling stock (carriages) for Te Huia. Some councillors expressed concern over the spend when the future of Te Huia beyond the end of the trial in June 2027 is uncertain. Further options around the business case will be considered in an upcoming council meeting prior to the budget being finalised. 

Councillors were also keen to increase Te Huia fare revenue for the final year of the trial. This could be achieved through a combination of increased patronage and higher ticket prices, they heard. A report on fare pricing is due to be presented to council before the final budget is approved.

The report to council noted that staff began the budget review process in September 2025 and it had been prepared based on a continuation of current operations and the commitments the council made with its community through the 2024-2034 Long Term Plan. 

While it was likely any major changes to the council’s operations and governance would fall outside of 2026/27 Annual Plan period, the report said, “changes may need to be made to the budget prior to adoption in June to take account of the reform programme”.

The council meeting was recorded and livestreamed. You can find it online at: https://youtube.com/live/5lC-yYvkqDI?feature=share