Northland Regional Council zeroes in on rare rates freeze

Northland local government leaders are reacting cautiously to news of Te Tai Tokerau's proposed first rates freeze in a decade.

The rare zero rates increase has been proposed by Northland Regional Council (NRC) for its coming 2026/2027 council financial year, with an impact on 100,000 ratepayers.

"We've been looking right across the council for savings and reductions that won't deeply impact our overall levels of service and we believe a 0 percent increase in rates take is achievable for the upcoming financial year," NRC chairperson Pita Tipene said.

"In an era of rising costs and inflation, holding the line on rates is our tangible way of standing with our people and easing pressure where it's needed."

Northland's last zero rates increase was in 2014, also at the regional council.

Tipene said the rates freeze would build on NRC's 3.54 percent general rates increase for 2025/2026, which had been lower than 5.79 percent initially forecast.

This followed three consecutive double-digit rate rises: 15.94 percent in 2024/2025; 10.48 percent in 2023/2024; and 13.9 percent in 2022/2023.

Tipene said the zero increase would mean minor reductions in some service levels, but the council's overall work would continue as planned.

NRC's rating move comes as the government signals council rates capping.

But Tipene said NRC had begun its rates consideration before this recent announcement.

"We didn't need central government to prompt us in our approach."

The final rating decision will be confirmed mid-2026 with the council's next Annual Plan.

Former NRC chairperson Mangawhai's Mark Farnsworth responded cautiously to the proposed freeze.

Farnsworth said he applauded the council, if it could do the nil rates increase and still match the extra costs of inflation without draining capital or borrowing to the point where interest costs were greater than rates take.

Council rates were challenged by central government's compliance cost creep and more work being pushed onto councils without adequate funding, Farnsworth said.

Former NRC deputy chairperson and Kaipara mayor Graeme Ramsey said the zero increase would be welcomed in his district.

"A lot of people over here are finding it very tough. The cost of living is a big issue," Ramsey, from Baylys Beach, said.

But he was tentative about the freeze, saying wanted to know what services were being cut to fund it.

Meanwhile, former Whangārei District Council (WDC) mayor Stan Semenoff said the regional council's proposed rates freeze was positive.

"Let's hope it stays into the future," Semenoff, also former NRC deputy chairperson, said.

But he said the council needed to be careful about how this was achieved.

Semenoff helmed WDC, and along with council finance committee chairs Wally Yovich, Dick Sumpter and Warwick Syers, achieved Northland's longest annual rates freeze - for nine consecutive years starting at the time of 1989 local government amalgamation when the district council began.

WDC has just proposed a new third rates increase option for next year's Annual Plan: halving the 2026/27 rates increase for consultation in March at its December meeting.

This would slash its planned 10.1 percent increase to around 5 percent.

Whangārei mayor Ken Couper said the council had heard the community's concerns about rates affordability and an independent financial review was underway looking for further opportunities to cut costs.

WDC would also consider the status quo 10.1 percent increase.

And another option which Couper said lightens the rating load for commercial and industrial ratepayers to better support economic growth and job creation.

This would see residential ratepayers' share of the overall rating payment increase.

Meanwhile, local government veteran and former WDC deputy mayor Phil Halsem said the councils' downward rates moves were a "good start".

But he said they needed to be careful they weren't forced into borrowing to fund the work that rates would otherwise pay for.

Costs for today's council work should not be pushed on to future generations to pay for, he said.

Halse said WDC's proposed rates halving was a good move, as long as it came with the capacity for increases through rates or debt to fund unforecast storm damage from the likes of Cyclones Gabrielle or Bola.

Kaipara District Council has yet to signal its draft 2026/2027 rates increase.

The council is expected to decide on this early next year.

Its long term planning set an average 8.3 percent general rates increase.

Councillors will be reviewing budgets in February to identify efficiencies where possible, the average general rates increase dependent on any budget changes.

LDR is local body journalism co-funded by RNZ and NZ On Air.