12% rates hike confirmed: But Wellington City finally has plans

Thursday, 26 June 2025

It took longer than a should but Wellington mayor Tory Whanau has achieved a a long-term plan - something every mayor has to do and most did 12 months ago.

And it’s done: Wellington City Council has confirmed a 12% rates hike and signed off a nine-year, $12 billion budget that has been more that a year in the making.

What turned out to be a largely pro-forma vote in council chambers on Thursday amounts to plans to spend $12b over the coming nine years, but also sets the path for rates hikes, in real terms, from now until 2033.

Crucially, the millstone around that has hung around the council’s neck all term – failing water infrastructure – will be taken off council books next year and taken over by a new water entity. This means council rates are forecast to drop from July 2026, but two bills – water and council – will still amount to an increase of about 11.4% in a year’s time.

The council was supposed to have its long-term plan (then a 10-year plan) signed off this time last year, but the process was derailed after a controversy over plans to sell the council stake in Wellington Airport. That sale had underpinned so much of the last budget that the council had to amend its long-term plan this year with the deadline falling on Monday.

The no-sale and forced amendment saw the government appoint Lindsay McKenzie to be a council observer – essentially an advisor and eyes and ears of the Government on council to make sure it got the plan over the line.

Each council is required to set a long-term plan each term, or every three years.

It means some planned projects had budgets reconsidered, often with costs cut. There included the Panake Pōneke bike network, Frank Kitts Park redevelopment, Karori Events Centre and and zoo upgrades.

Also signed off was the 2025-26 annual plan.

Voting for the two plans was mayor Tory Whanau, deputy mayor Laurie Foon, Nureddin Abdurahman, John Apanowicz, Diane Calvert, Sarah Free, Rebecca Matthews, Ben McNulty, Teri O’Neill, Iona Pannett, Geordie Rogers, and Nīkai Wi Neera.

Voting against were Nicola Young, Ray Chung and Tony Randle.

Tim Brown was not at the meeting.