Your rates in 2025/2026

Each year we produce a Draft Annual Plan that details the proposed level of rates for the next financial year, along with the details of how services will be funded and provided. The rates are set in July of the rating year.

Rates are based on a combination of the property’s land value (as assessed by Quotable Value New Zealand Limited) and the characteristics of the property. Every property in the district is allocated to one of four groups called differentials. Rates include a uniform annual general charge (UAGC). The four differential groups are:

Group 1 – Commercial/industrial properties.
Group 2 – Residential properties 1ha or less.
Group 3 – Small holdings (1ha to 4ha).
Group 4 – Farmland (greater than 4ha).

Targeted rates are fixed charges for water supply, sewage disposal and refuse collection. Only properties that receive these services pay the charges. We calculate and levy these charges separately from general rates.

We collect rates on behalf of the Taranaki Regional Council and this is itemised separately on your rates statement.

The GST and targeted rates errors were human error, which should not have happened.

The residential error was caused by incorrect assumptions about the average land value and number of residential properties used in the rating model. As a result, the average residential rate increase for 2025/26 is 12.8%, not the 9.9%.

Error 1: On 13 May 2025, Council adopted a rates resolution that mistakenly used GST-exclusive figures. This error was identified and the minutes corrected at the 1 July 2025 Extraordinary Council Meeting. There is no financial impact to ratepayers.

Error 2: Relates to restricted water flow charges and an administrative wording that requires correction. We will seek to correct this administration error with a new minute on 22 July Council meeting. If corrected, there will be no financial impact to ratepayers. 

Error 3:  This relates to using incorrect assumptions about the average land value and number of residential properties, resulting in an average residential rate increase of 12.8% not 9.9%.  Options to fix this will be discussed at an Extraordinary Council meeting on July 22. See fact sheet for more details 

No, the rates are legally valid, any refund or change is pending the outcome of council meeting on 22 July.  Rates assessments (bills) will go out as planned.

No one person. There is a team of people that produces and reviews the report to council which was also approved by Audit NZ.

We don’t comment on individual employment matters. However, we take the matter seriously and our Chief Executive is proposing structural changes to strengthen financial capability and oversight within the organisation.

The Annual Plan itself remains valid and approved, and the total dollar value of rates does not change. It is the percentage that residential ratepayers were paying that was calculated and stated incorrectly.

No. The GST error meant there may have been a 15% shortfall vs the expected rates. You would not have to pay 15% more than planned.

No. The GST error meant there may have been a 15% shortfall vs the expected rates. You would not have to pay 15% or $20 million more than planned. 

The following steps are being taken:

Simpson Grierson. 

The GST and targeted rates errors were human error, which should not have happened.

The residential error was caused by incorrect assumptions about the average land value and number of residential properties used in the rating model. As a result, the average residential rate increase for 2025/26 is 12.8%, not the 9.9%.

 Letters have already been mailed out with the exception of customers of the 767 properties with restricted flow properties – these, and all email notification, have been paused pending the decision at the 22 July Council meeting.