Wellington rates promises 'cute' as new bill comes down pipeline

Wednesday, 11 June 2025

While rates bills directly from councils should reduce, the total amount households have pay may well not. (File photo)

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Wellington households can expect a new standalone bill as soon as next year – calling into question “cute” claims of zero rates rises as the capital enters its three-month countdown to voting.

July 1, 2026 is the culmination of two wallet-defining events – it is when councils will have annual plans completed, which set rates for the year ahead.

It is also when new water entity has to be established, taking the running of water infrastructure out of the hands of councils, via Wellington Water, into a new organisation with ownership of the pipes and ability to borrow more. The new entity has the working title Metro Water.

Dame Kerry Prendergast, a former Wellington mayor heading up the Metro Water advisory group, said soon after starting the new entity should be able to start sending bills directly to households.

Dame Kerry Prendergast, leading the advisory group for the new water entity, aims to get direct-to-household bills out soon after forming on July 1 next year.

For three years, from September 2025, it can only charge households the amount already committed for water in council 10-year plans.

While rates bills directly from councils should reduce, the total amount households have pay may well not.

Any promises from council or mayoral candidates of zero rates increases were “cute”, Prendergast said. Council voting opens on September 9.

Greater Wellington Regional councillor Ros Connelly, who is on the Wellington Water Committee, understood Metro Water would not be able to bill from July 1, but said there was work to get it in place as soon as possible.

An Independent Together billboard promises zero rates increase. Its mayoral candidate, Ray Chung, is not so sure - at least for the first year.

In Wellington City, Ray Chung is leading a group of would-be councillors running on a “zero rates” increase for three years “pillar”. Rates would be pegged to inflation after that under Independent Together’s plans.

Chung and the other main Wellington mayoral candidates – Andrew Little, Karl Tiefenbacher and Alex Baker – were asked to confirm their promises around rates included the separate water bill.

Chung understood the water bill would stay with the council for some years and said his rates pledges factored that in. However, he differed slightly from Independent Together – the group he is the figurehead of – saying the zero rates increase may not be possible next year.

Little said he would bring in an independent expert to run a ruler over major projects to reduce the risk of cost blow outs.

“Promises of zero increases for three years on rates and water are simply not credible and if implemented would lead to significant cuts to basic services.”

Tiefenbacher, who pledged to “keep rates down” and stop wasteful spending, said the council needed to make sure money was spent wisely by auditing processes around procurement and delivery.

“Ratepayers are concerned about the totality of what they pay, no matter who bills them, and It would be misleading to not compare apples with apples.”

Baker, who promised to “deliver services and amenity to the city at a level of cost that is acceptable to the ratepayer”, confirmed he was factoring in both bills.

“Any pledges I make will consider the full city management costs to the ratepayer,” he said.

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