Let's talk about the Annual Plan Mahere ā Tau 2026-27

 Consultation for the Draft Annual Plan Mahere ā Tau 2026-27 runs from Friday 17 April through to Monday 18 May 2026.

Do you support what is being proposed?

If not, then please tell us what...

Submissions are open from Friday 17 April - Monday 18 May 2026

Message from the Mayor and Chief Executive

Tēnā tātau katoa | a warm welcome to you all, our community on behalf of Te Kaunihera ā rohe o Kawerau to the proposed Annual Plan Mahere ā Tau 2026-2027. This is year two of the Mahere Iwa Tau | Long Term Plan 2025-2034, which sets our clear direction for a prosperous and resilient district. 

Our focus remains on delivering the best value services to our community. In balancing affordability with essential investment, we are proposing a rates increase of 5.8%. 
We continue investing into Three Waters infrastructure. In the coming two financial years, we are scheduled to complete the final stages of our district-wide drinking water pipe replacement programme. 

Following robust community support, we kept the in-house delivery of water services as part of the Local Water Done Well reforms. This also requires the gradual nine-year transition to targeted water and wastewater rates, so that those who use these services pay their fair share over time.
Financially, we remain committed to prudent management and sustainability. This year marks the first planned 3% increase in our funding of depreciation for strategic assets, moving us to 100% funding by 2037-38 to protect future generations.

Enabling economic and community growth remains a priority including delivering the residential development at Stoneham Park.

Thank you for your continued engagement as we work together to create a resilient and sustainable Kawerau.

Kahika | Her Worship the Mayor Faylene Tunui       

Tumu Whakarae | Chief Executive Morgan Godfery 

Contents

What are we proposing for our Annual Plan Mahere ā Tau 2026-27

Consultation Topics

1. 5.8% rates increase
2. Keep the current Uniform Annual General Charge(UAGC) for all properties at $900 or reduce it to $850

Challenges and Future Opportunities

Community Engagement Sessions

Consultation Timeline

Make a Submission

What are we proposing for our Annual Plan Mahere a Tau 2026-27:

Council proposes an overall rates increase of 5.8%*.
This falls just outside the rates affordability framework of estimated inflation of 3.1%, plus two percent, but well below last year’s increase of 8.5%.
The drivers of the 5.8% rates increase:

• Personnel and government-mandated KiwiSaver % increases to 3.5% (1.9% impact on rates).
• Depreciation expense increases due to value of Council assets rising by $29.9 million, and the increase in depreciation funding to 68% (2.1% impact on rates)
• Setting up in-house business unit to continue delivering water services and compliance (0.3% impact on rates).
• Roading costs increases (0.2% impact on rates).
• Financing (loan interest) costs (0.2% impact).
• Audit fee for Long Term Plan (0.7% impact).
• Refuse disposal fee increases (0.2% impact).

Drinking water pipes renewals project:
The community supported Council completing a major drinking water pipe renewal programme in the Long Term Plan in 2021. The project is now more than 60% completed, and more than 40km of new pipes have been installed into the district. Council outlined in the Long Term Plan in 2021, that it would borrow $12 million to fund the renewals, the first loans required by the Council for many years. The council joined the Local Government Funding Agency (LGFA) to access long-term low interest rate loans offered to local government (councils) and has been uplifting loans for each section of the water pipe reneal project. 

By 30 June 2026, Council will have borrowed $8 million to fund the water pipes renewals via the Local Government Funding Agency (LGFA). 
Of this total, $400,000 was invested with LGFA debenture stock. The proposal is to bring forward the next loan of $2.7m in the coming year 2026-27 year (and keep to the total $12m planned loan by the end of the water renewal project).

Continuing the gradual nine-year transition to targeted water and wastewater rates (as required by legislation).

Considering the level of the Uniform Annual General Charge (UAGC) that every rateable property pays (minimum charge per property). Keep the UAGC at $900 or reduce to $850

Consulation Topics:

Topic 1 - 5.8% rates increase*

Proposed rates increase of 5.8%. This is the overall rates increase proposed, based on keeping the same level of services for the community. The actual rates increase per property will depend on the value of the property.
Tell us if you support the 5.8% rates increase, or if you don’t, what you would like to see changed or reduced to lower the costs to provide services.

Please note, these rates comprise a uniform annual charge per property and the remainder of this charge is based upon property value

*This is an overall rates increase. The weekly increase will vary for each property depending on the value of residential, commercial or industrial properties. 

Topic 2 - Maintain the current Uniform Annual General Charge(UAGC) for all properties at $900 or reduce it to $850

The Uniform Annual General Charge or UAGC is the minimum rates charge per property. Should we keep the UAGC at $900 or reduce it to $850 due to the impact of the increased targeted water and wastewater rates?

Important note: when comparing the rates between 2025-26 and 2026-27, there are varying impacts on individual properties due to the gradual increase of the targeted water and wastewater rates. Targeted rates are a set amount per property, which does impact lower value properties more than higher-value properties.

Challenges and future opportunities

• Delivering the best value for money with core services water, wastewater, stormwater, regulatory and planning, roading and footpaths.
• ‘Ring fencing’ our in-house business unit to continue delivering water services to the district while introducing targeted rates for water services. This entails separating water-related financing and reporting from other council activities.
• With a longer-term focus, Kawerau is working with Rotorua, Whakatāne and Ōpōtiki councils and technical expertise to investigate the risks, benefits and opportunities of delivering water services together from 2029. In late 2026, each council will consult with their own communities as to the outcomes of the report, and preferred future options.
• Simplifying Local Government legislation proposes setting up Combined Territory Boards governed by Bay of Plenty council mayors instead of the incumbent elected members of the Bay of Plenty Regional Council.
• There are uncertainties of the impacts of the proposed Simplifying Local Government legislation including the proposed rates capping between 2% and 4% by 2029. The only certainty is that there will be change. 
• Managing costs in an increasing climate of increases, especially with the current war and impacts on fuel costs.
• Focusing on increasing economic and community development including a Kawerau-centric economic development strategy.
• Funding investigations into the development of a new Community Library and Research Centre are proposed in the coming years.
• Delay installation of a manganese removal plant at Te Wai o Marukaa which requires an investment of approximately $1.072 million. Testing during the past year of Te Wai o Marukaa shows manganese levels have significantly decreased.
• Reviewing and streamlining services as we prepare directions and decisions for the future in the Long Term Plan 2027-2037.

BIG TICKET ITEMS 2026-27

Community Engagement Meetings:

Nau mai haere mai | All welcome

Consultation Timeline:

Make a submission:

Email submissions@kaweraudc.govt.nz 
Facebook Messenger
Drop your submission to Council office, isite or library

Keep an eye on our social media channels, antenno and on our website for more information and a submission form. 

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