Homeowners are facing average rates rises of 15% according to data in draft long-term plans across 48 councils, averaging at about $8 more per week* per household.

LGNZ commissioned a report by one of the country’s leading economists, Brad Olsen, which starkly illustrates the cost pressures councils are under. It also states that between 2002-2022, the average rates rise was only 5.7% per year, and rates rises averaged 9.8% in 2023.

“Councils are acutely aware they need to balance the need for investment with affordable increases but the pressure has reached tipping point,” says LGNZ’s Vice-President Mayor Campbell Barry.

Findings from the Infometrics report:

Over the past three years, costs have significantly gone up:

-Bridges are 38 per cent more expensive to build

-Sewage systems are 30 per cent more expensive to build

-Roads and water supply system are 27 per cent more expensive to build.

All councils are facing increasing costs for existing assets and services due to

-Inflation

-Cost of servicing debt

-Increasing insurance costs and audit costs.

“Councils' share of overall tax revenue has remained at two per cent of GDP for the last 50 years, despite our ever-increasing responsibilities,” says Mayor Campbell Barry.

“On top of the cost increases to existing assets and services, councils also face new pressures that require new spending.