Annual Plan & Co 2026/27 - Mayor Andy's Message

When we last set our long term direction in 2024 through the Long Term Plan 2024-34, much of the challenge was understanding what the newly elected Government’s reform plans might mean for Rangitīkei, and how quickly change would occur.

Last year, the focus of our Annual Plan 2025/26 was on managing that change as it began to take shape (particularly in the three waters space through Local Water Done Well), while also navigating the pressure of our large but necessary infrastructure upgrades across the district.

This year’s Annual Plan 2026/27 reflects the next step in this journey.

We now have clearer visibility on the reform proposed for local government, including:

• Local Water Done Well: Council is actively involved in establishing Central Districts Water alongside Palmerston North City and Horowhenua District Councils.
• A "Back to Basics" directive, which includes increased accountability and a proposed rates cap of 2 to 4% from 2029.
• Resource Management Act reform, with the current legislation set to be replaced by two new Acts.
• The proposed replacement of elected regional councillors with the creation of Combined Territorial Boards made up of district and city Mayors.

The work required to implement this change is immense. It is creating additional pressure on staff and Council in the short-term, before any long-term efficiencies will be realised.

I am certain collaboration across councils will increase; building on the work already underway in the three waters space with the establishment of Central Districts Water, and in our regulatory team with various shared services arrangements operating across animal control, environmental standards, civil defence and resource consenting.

Against this backdrop, the proposed average rates increase for 2026/27 is 6.4%. This is about maintaining essential services and providing stability for ratepayers and the wider community. I want to acknowledge the work of Council staff, who have worked incredibly hard to find efficiencies that have reduced the forecast average increase from 10.75% outlined in the Long Term Plan 2024-34, to the proposed average 6.4% this year.

Council has a responsibility to future-proof the district while also keeping services affordable for today’s ratepayers. That balance is not easy, and it is one that Councillors and I take incredibly seriously.

Important projects must continue to move forward – including Marton Water Strategy, the Marton Swim Centre, critical repairs to the Napier-Taihape Road, and many others. These are not short-term decisions or projects with short-term solutions. They are long-term investments that will shape the resilience and growth of Rangitīkei for decades to come.

While project delays can be frustrating, Council’s role is not simply to complete projects; it is to deliver them well - and in a way that reduces long-term risk and cost for Rangitīkei.

This document sets out how Council proposes to fund essential work in 2026/27. It explains what your rates pay for, how they were used during the 2025 calendar year, and provides updates on key projects currently underway.

I encourage you to read and digest this information, consider the challenges and trade-offs we are navigating, and share your views. Many of the decisions ahead are not about quick wins, but about making careful, long-term choices. Council is committed to working with you at a local level to ensure those decisions support Rangitīkei now, and well into the future.

Ngā mihi,

Andy Watson
Mayor
Rangitīkei District Council

Find out more about the Annual Plan & Co 2026/27