No easy fix: Pre-election report lays it bare
Tuesday, 8 July 2025
Wellington City Council’s pre-election report depicts a city struggling to keep its head above water and warns tough trade-offs will need to be made to get it back on its feet.
The report is a statutory requirement for all councils so candidates know the challenges and opportunities they are campaigning to take on.
Its author, new chief executive Matt Prosser, who has refused repeated requests to be interviewed by The Post, is surprisingly frank, admitting the city is under considerable pressure, financially, socially and environmentally.
The elephants in the room include balancing rates affordability and financial constraints, investment in ageing infrastructure in the face of costly natural hazard risks and building up trust in council’s decision-making.
“Over the last six years the council has made unprecedented investment into our assets to ensure the city is resilient and prepared for the future,” Prosser notes, before adding a warning.
“Much of this investment has been funded through borrowing, to share the significant cost among the people who will use the assets over time. The council’s increased debt needs to be serviced, primarily through rates.
“Additionally, the council cannot insure all of its assets: it has a $1.8 billion to $2.6b under-insurance gap. If there is a natural disaster, the city is exposed – it will not have sufficient funding to repair damage and rebuild.”
That meant the council would have to reduce its capital programme over the next 10 years to increase debt headroom, he said.
Meanwhile the forecasted net-borrowing position as of June 30 was $1.6b, equivalent to $7654 for every person in Wellington, while the Long Term Plan showed that would increase to $1.7b by June 30, 2034 (excluding any population changes), equating to $8174 per person.
There was also a warning for candidates standing on a “no rates rises” platform, and ratepayers hoping for a break: “Meeting community demand comes with trade-offs on where the council invests. While doing things smarter can present opportunities for cost savings, it is not possible to maintain and upgrade assets, continue to deliver all current services, and prepare the city for the future without increasing rates.”
That said the council's projected year-on-year rates “increase” for 2026/27 was -26.4%, due to the transfer of water activities to a new water entity. Excluding this transfer, the rates increase (including the sludge levy) would be 12.8%.
Prosser said the next council would need to make some tough decisions and be careful about its investment choices. “This will require making evidence-based decisions through understanding community needs, ensuring decision-making aligns with strategies and policies, and considering all available options – such as delivering services differently, or better utilising existing assets to maximise the use of what we have.“
He also took a stab at the vocal minority, especially when it comes to future transport needs, saying that often it was only a small proportion of the community who engaged with the council.
“This means that decision-making and implementation must balance those views with the wider needs of the city. Additionally, transport upgrades often cause disruption during construction and require time for people to adapt to the new infrastructure. This period of change and adjustment can be frustrating for residents and businesses alike.”
Additionally the report highlights concerns about the rising cost of living, global market uncertainties, an unstable job market, and rising construction costs.
The good news? Wellington has a highly skilled workforce, with higher-than-average incomes and some of the best productivity levels in New Zealand.