Mayor’s rates cap would see Ngāmotu borrow more, fix less

A promise from New Plymouth's mayor to cap rates will mean cuts to road and drain maintenance, a slow-down in projects and an extra $20 million in borrowing.

Despite multiple budget cuts, New Plymouth District Council’s day-to-day spending would still increase, eating up the previous council’s budget surplus.

New mayor Max Brough campaigned on restricting rate increases to inflation-plus-one percent.

Contenders warned of deep cuts to works and services, greater debt, or both.

Brough’s proposed 2026-27 budget would more than halve Ngāmotu’s 10.9 percent projected rates rise to 4.9 percent, achieving his promised cap of inflation-plus-one percent.

He said the cuts were “a good start”.

“I have pushed staff hard to relook at everything to reduce costs.”

Mayor Max warns that messing with his budget might force community consultation including with iwi and hapu. (Te Korimako o Taranaki)

Councillors will debate his budget at an extraordinary meeting on Wednesday.

Under the budget, the council’s $272 million operating income would be a decrease of $24 million while operating expenses would increase $12 million, so the previous council’s surplus of $36 million would disappear.

NPDC’s debt is forecast to reach $523 million, $20 million higher than budgeted under the 10-year plan.

The increased borrowing is being blamed on the previous council approving $20 million for runway realignment and a solar farm at Papa Rererangi i Puketapu – New Plymouth's airport.

But the airport company – which NPDC owns – has to pay back the $20 million with the first $500,000 quarterly repayment next month.

The mayor wants to delay capital projects including water supply improvements, stormwater upgrades, the coastal walkway to Waitara, and cliff erosion and seawall protection along the city’s coast.

He said NPDC must be “realistic about what we have the capacity to deliver in any year, so this proposed budget recognises this by rephasing or pausing some planned work”.

“Ratepayers have made it very clear they are at breaking point and continuing down the path of double-digit rates rises was not acceptable.”

Brough’s proposed budget prunes 10 per cent from a planned $150 million capital spend on infrastructure and community facilities.

Stormwater investments would be drained from $14 million to $10 million.

Aging sewer pipes need replacement, but NPDC now says can only carry out 70 per cent of previously planned renewals, saving $2 million.

Government funding cuts drove the last council to reduce road maintenance by $2.3 million – Brough’s budget keeps those roading cuts.

Reducing carbon emissions by updating heating and air conditioning would be paused, and other climate change adaptations slowed down.

The budget shows Ngāmotu suffering from the recession with council income from property developers $8 million short of expectations.

Delaying the Waitara walkway saves money but also means $5.4 million of Government funding disappears from council income.

Papers for Wednesday’s meeting advise Brough’s changes have been deemed not a "significant or material" change from budget predictions in NPDC’s 10-year plan.

Officers said that means consultation with the community and mana whenua wouldn’t be required.

Iwi and hapū had "specific engagement" in the 10-year plan and would get another say only if changes were significant or material.

Brough warned NPDC could be forced to consult if councillors vote to change his proposed budget.

The mayor's proposals would trim $3 million from Te Pae o te Rangi – the coastal walkway to Waitara.

He’d also delay buying land along the pathway, shifting $3.5 million off the current budget, and pushing another $8.5 million of contingency funding out to 2027-28.

Waitara’s $3.5 million stormwater upgrades are slashed to $500,000 and Inglewood’s from $800,000 to $200,000.

Urenui and Onaero sewerage works go from $2.5 million to $500,000.

Affordable housing built in a community partnership can't find enough building sites so 60 percent of the budgeted $5 million is cut for now, moving another $3 million off this year’s books.

Geotech matting would reduce erosion at “pinch points” along the Kāwaroa-Belt Road cliffs and seawall – but $2.6 million of spending would be pushed out to autumn 2028, reportedly to better suit the area’s penguins.

The boiler and chiller for air conditioning at the Govett-Brewster Art Gallery and Len Lye

Centre need replacing but have been found not at risk of failure – delaying replacement saves another $800,000.

Brough’s budget would increase spending in some areas.

Building emergency overflow storage at the Mangati wastewater pumping station would get an extra $6 million.

Puke Ariki library and museum is due an extra $2 million for a re-roof deferred from last year.

Flood protection works would rise five-fold to $1 million to ensure dams meet safety rules.

nā Craig Ashworth craig@tekorimako.co.nz

LDR is local body journalism hosted by Te Korimako o Taranaki and funded by Te Reo Irirangi o Aotearoa and Irirangi te Motu