Planning for rates caps - Cambridge News, 3 Sep 2026

Capping rates increases at 4% from 2029 may bring short term benefits for ratepayers. The real test will be the long term outcomes for our roads and other infrastructure.

Waikato District is one of only nine councils around the country that has already managed to meet the cap this year with an average rates increase of 3.79%.  But a recent Council workshop on our next Long Term Plan 2027-37 revealed the strong focus we must put on future budgets to support our infrastructure sustainably.

Stormwater operating budgets must stretch to cover increased regulatory and consenting requirements imposed by the Government regulator, and a first cut of our future roading budget allows for 3% roading renewals whereas 6-8% is needed for long-term sustainable management.

We can’t afford the poor outcomes of rates “pegging” in Australia where a New South Wales parliamentary inquiry in 2024 reported there was “clear evidence that the rate peg has not kept pace with the level of income councils required to adequately meet the needs of their communities.” This included a $201m infrastructure maintenance shortfall identified across 62 councils in a single year.

This month Waikato District will embark on a “high-level” conversation with our communities about budgeting to support our future planning as we prepare for rates capping - and for future council amalgamation. We need to hear what services, projects and activities matter most to you. We also need open and honest conversations about affordability and potential trade-offs, including different levels of service.  Where should we boost budgets and where should we make savings to allow for that?

Rates capping is part of a Government mission to root out “white elephant” spending by local councils. It comes hot on the heels of Government legislation identifying core services Councils must prioritise – network infrastructure, public transport, waste management, civil defence emergency management, and recreational facilities including libraries, museums and reserves.

It doesn’t seem to allow for the imminent costs of Council amalgamation – not yet quantified but likely to be very high. The Auckland Super City set-up costs in 2010 topped $200 million.

It barely allows for the rising cost of core infrastructure which has regularly outstripped the consumer price index over the past 20 years, and which soared by 27% over just three years to 2024.

It won’t allow for any catch-up following the National Land Transport Plan 2024-27 which saw NZTA roading subsidies for local councils slashed to make way for roads of national significance, leaving Waikato District about $35m short of expected support for planned new roading projects – many of which had to be deferred for three years.

Ironically, the Government’s own Southern Links project for Hamilton has now also been put on hold due to pressure on transport funding. This project was designed to link SH3, Hamilton Airport and the Waikato Expressway, and it’s loss now puts continuing pressure back on our local roads.

Long Term Plan community engagement meeting dates in Tamahere-Woodlands will be advertised shortly.* Please come to learn more and to share your thoughts – especially if you see any “white elephants” that should be culled!

*See you at:

• Gordonton Hall, 1024 Gordonton Rd, Thursday 10 September, 7.30-9pm

• Tamahere Community Centre, 21 Devine Rd, Sunday 18 October, 2-5pm

Crystal Beavis, Waikato District Councillor, Tamahere-Woodlands Ward

See the article as originally published on 3 September 2026 in the Cambridge News here.