Taupō District rates to rise by an average of 6.6%

Tuesday, 7 July 2026

Taupō ratepayers will be hit by an average rates rise of 6.6%, but two councillors voted against the move due to concerns over financial scrutiny.

Almost half of that increase, 2.9%, will go towards upgrades such as a new water treatment plant at Hātepe and an upgrade to the existing water treatment plant on Centennial Dr.

First-term mayor John Funnell campaigned on a platform of reducing rates increases, and said he’s happy the rate is slightly less than what was anticipated.

“We’re hearing loud and clear from the community that affordability is front of mind and we know that 6.6% is still higher than people would like,” Mr Funnell said.

“However, the unpalatable truth is that it can’t be brought down further without deferring or cancelling essential work that we’re committed to delivering.”

In a media statement, Taupō District Council said they initially forecast a 6.7% increase, but beat the projection by 0.1% because they found $1.7 million in savings by deferring some capital projects.

Those deferred projects include:

- Widening the Great Lake Pathway between Rainbow Point and the southern end of Secombe Park

- a Taupō wastewater solids filtrate treatment project

- some erosion control work

- a community heritage space development at Taupō Library

- removeable bollards at Roberts St, Taupō.

However, Mangakino-Pouakani Ward councillor Hope Woodward and Taupō Ward councillor Duncan Campbell said they can’t support any increases until an increase in financial scrutiny has taken place.

Taupō District’s new AA credit rating

S&P Global, an international credit agency, has assessed Taupō District Council.

A strong credit rating means lower interest rates will be offered to potential lenders.

S&P Global has given Taupō District Council an AA rating, which reflects high quality and low credit risk.

Funnell said the rating is a sign that the council is managing rates funds responsibly.

“This rating confirms that we’re on the right track. We’re making important investments to support our growing community, while keeping a strong focus on financial discipline and long-term sustainability.”

However, residents are still wondering how the council justifies spending six-figures on sculptures like Boom Boom, and seven-figure lease bills on He Whare Hono o Tūwharetoa, the council’s headquarters.

The quest for savings

Like Funnell, Campbell campaigned on a platform of reducing rates increases.

He said further savings could be found if the council opened the books to elected members.

“We rely too heavily on staff to identify savings,” he said.

“Rather than elected members being given proper opportunity to scrutinise spending and explore different ways of doing things.”

Campbell wants a council committee that oversees council spending, similar to the Finance and Assurance Committee in Hamilton or the Value for Money Committee in the Auckland Super City.

Woodward shared similar sentiments and has made multiple requests for breakdowns in staffing expenditure.

“I personally am just not comfortable accepting $42 million in operational expenditure,” she said.

“As it is a significant amount for us to accept without a clear breakdown.”

She made another request at the June meeting for information on the efficiency and productivity rises from increased staff numbers, but was declined.

Why councillors voted yes

Te Papamārearea Ward councillor Wahine Murch has long advocated for improvements to water infrastructure and better environmental protections.

She celebrated the planned investment into water treatment.

“Nearly half of that [investment] is made up of us having to meet new water service delivery requirements by central government,” Murch said.

“And the other half is us making the relevant adjustments to be able to fund the work streams and services that we’ll continue to provide.

“You can’t actually promise or campaign for what you don’t know, they should take this as a learning lesson.”

Does rates capping help ratepayers?

On December 1 last year, the Government proposed a rates policy that would limit the rate or rates increases per year.

Local Government Minister Simon Watts suggested the increase rate could be capped at four per cent per annum.

“Ratepayers deserve councils that live within their means, focus on the basics and are accountable to their community,” Watts said.

“The Government’s decision to introduce a cap on rates will support that ambition and protect local government’s social license for the long term.”

He said the Government would introduce new laws to enforce the proposed cap and they would be implemented by New Years Day 2027.

– LDR is local body journalism co-funded by RNZ and NZ On Air.