Councils warn of tough decisions ahead as rising costs and ageing infrastructure bite

Tuesday, 15 July 2025

Local councils in the Wellington region have released their pre-election reports.

Hutt Valley, Porirua and Kāpiti’s councils have given notice before this year’s local body elections that rising costs, ageing infrastructure and years of underinvestment mean tough choices lie ahead.

Their pre-election reports partly echo that of the Wellington City Council’s report, in which chief executive Matt Prosser said the next council would need to be careful about its investment choices and difficult trade-offs would be needed to get the city back on its feet.

The Upper Hutt City Council, whose 15.78% average rates increase this year makes it the second highest in the country after Clutha District Council, said in its report that it was no longer financially viable to keep rates at low levels without being detrimental to local infrastructure and facilities.

Rates make up 70.2% of income in the Upper Hutt council’s last long-term plan, but financial information attached to the report showed a growing funding deficit until 2029.

Hutt City Council is already using AI tools to boost performance and find efficiencies, says chief executive Jo Miller.

It also warned that reduced government spending, or new measures like a rates cap, could hamper the council’s services or its ability to meet its financial obligations and goal to balance the books: “This impacts on what we can fund and deliver, reiterating the lack of both certainty and enduring, sustainable funding solutions local government is exposed to.”

However, the Hutt City Council’s report said the new council would need to set strategic priorities under a constrained budget, with little wriggle room for debt and ongoing cost of living pressures for residents. The next council would need to make tough calls on service levels for a balanced budget and cut down rates rises.

“Our costs are rising and there is a need to look carefully at what is being spent and why – and how we can improve our performance in a way that doesn’t add significant costs to ratepayers,” said chief executive Jo Miller.

She also said the council was already using AI tools to boost performance and find efficiencies, including using one to generate short podcasts narrating excerpts of the pre-election report in her voice, and using new technology had shaved tens of thousands of hours of staff time.

Porirua City Council chief executive Wendy Walker said affordability was the most immediate issue and the next council would need to examine the role it plays in meeting residents’ needs or drive more efficiencies like introducing AI tools.

In the Kāpiti Coast council’s pre-election report, chief executive Darren Edwards says the next council needs to rethink financial strategies to be less reliant on rates and borrowing.

“The challenge we face is that our rates increases and charges are inadequate to deal with the investment required,” she said.

“It is no secret that decades of underinvestment has finally caught up with us and today’s generation is bearing the brunt of the investment catchup”.

The Kāpiti Coast District Council’s chief executive Darren Edwards said in his report that the council needed to rethink its financial strategies to not solely rely on rates and borrowing.

“The combination of high inflation, rising insurance premiums, and significant cost increases across our activities has made it more difficult to provide the necessary infrastructure and services while keeping rate increases modest,” he said.

Other challenges the next Kāpiti Coast council would face included a lack of affordable housing, poor access to social services and the need for planning for natural hazards.