Waikato Regional Council (WRC) has a rare surplus on its hands. Now it wants to know what the public thinks it should do with it.
After allocating funds to invasive species containment and maritime transition duties, the Council still has just under $4.5 million left from last year’s budget. Through its draft Annual Plan, it’s asking ratepayers whether to return the surplus as a one-off rates reduction or set it aside to manage future risks.
“If we were to return all of the available prior year surplus to offset rates in the coming annual plan, what that would mean is a one-off reduction in the general rates of about $1.90 for every $100,000 of property value,” said Council Chair Pamela Storey in a recent interview on Raglan Community Radio.
“So for a $500,000 property, you would see a one-off reduction of $9.50. For a $1 million property, it would be a reduction of $19.”
But Storey warned the move could push up rates in the future. “We’re currently signalling a 4.2% rise in Year Three of the Long-Term Plan, and this could go higher if we return the surplus now,” she said. This is because having no rise this year would make next year’s increase appear much larger, even though it would be the same amount of money overall.
The surplus came from a combination of factors: extra Crown funding for shovel-ready infrastructure, better-than-expected investment returns, and reduced borrowing costs due to lower interest rates.
Golden Clams Threaten Infrastructure
Some of the surplus has already been committed to containing golden clams, a recently detected invasive species that threatens local infrastructure.
“They’ve already been found in the Tuakau water treatment plant,” said Storey. “They clog filtration systems and can also impact power generation.”
The Council is working with iwi and water providers to contain their spread, with strong support for action coming from around the country.
Public Transport: A Regional Overhaul
WRC is also proposing a fundamental change to how public transport is funded across the region. Currently, multiple councils collect and transfer rates – a fragmented system that Storey says hampers planning.
“We’re the only region in the country that doesn’t collect all public transport rates through the Regional Council,” she said. “If you’ve got a new bus route you want to fund, you need approval from several councils. It just slows everything down.”
Under the new model, WRC would collect transport rates directly, using five categories across three geographic zones: Hamilton City, Central Waikato (which includes Raglan), and Regional Waikato. This structure follows extensive consultation after earlier rate collection models failed to gain public support. Local watchdog John Lawson has criticised the system, saying it means Raglan pays the same rate as Huntly and Ngāruawāhia but gets fewer buses each day. Pamela responded that the aim was to keep the system relatively simple.
“We had overall vast majority support for introducing a regional public transport rate through our Long-Term Plan consultation,” Storey said. “We surveyed the public and engaged all our district and city council partners to find an approach that works locally.”
Each area has a simplified per-property rate based on access to services:
- Hamilton City properties would pay $278.88 per year
- Raglan and other towns in the Central Waikato zone would pay $76.69
- Properties in unserviced rural areas would pay $11.50
Rates are higher in areas with better public transport access. “Public transport is a public good, and everyone contributes,” said Storey. “But we recognise that those with more access should pay a bit more.”
Storey acknowledged differences in service frequency, including the four-hour gap between buses in Raglan compared to more frequent routes in Huntly and Ngaruawahia.
Option Two – an alternative model under consultation – proposes the same rates for Central and Regional Waikato, but uses a capital-value-based (CV) rate in Hamilton City, consistent with the current system there.
While WRC would assume more responsibility, territorial authorities would still have a voice through the regional transport committee and the Future Proof public transport subcommittee.
“We’re not removing local input – we’re just streamlining the process,” Storey said.
More Funding for Community and Disability Transport
The new transport rate would also fund services beyond buses. Total Mobility, which offers half-price transport for people with disabilities, and community providers like the Raglan District Community Vehicle Trust, would benefit.
“We’re proposing to increase funding from $200,000 to $500,000 a year,” said Storey. “These are the providers that pick people up, get them to medical care and keep them connected to their communities.”
Coastal Flooding and Climate Change
In response to severe 2018 flooding in the Pūkorokoro (Miranda) coast area near the Firth of Thames, WRC is proposing a new catchment and river management programme to help protect low-lying farmland and surrounding communities.
“That area suffered some really significant weather events,” Storey said. “The community came together and developed the Wharekawa Coast Community Plan, and we’re now working to support that vision through this funding approach.”
The programme is expected to cost $150,000 per year over the next decade. It would be funded through a mix of targeted and general rates – with 70% paid by those in the locality and 30% from the general rate.
“For non-Wharekawa ratepayers, this equates to just two cents per $100,000 of property value,” said Storey.
While Raglan ratepayers would only contribute a small share via general rates, the initiative highlights wider climate adaptation challenges.
There are constant risks posed by strong easterly weather systems and the reality that parts of the region, such as the Firth of Thames, are already vulnerable to coastal inundation.
WRC is also engaging with communities across the region – including Port Waikato, Coromandel, Hauraki and Matamata-Piako – about long-term adaptation plans.
“We’re having a number of conversations with communities that are facing those scenarios,” said Storey. “And I’d love to see some central government direction on how they would like communities and local government to address this issue. It’s not just a Waikato issue – it’s happening throughout the country.”
She confirmed she has raised these concerns with multiple local government ministers. “It’s a continuing conversation,” she said. “The government has signalled interest in resource management reform, and hopefully they’re considering how our communities will deal with these challenges as part of that package.”
Storey also acknowledged the tension between long-term planning and local desire to protect productive land. “Many of those stopbanks are protecting land that contributes to regional GDP. It’s a difficult conversation for our communities, but we shouldn’t shy away from it.”
Looking Ahead
Storey confirmed she’ll stand again in October’s local elections. “It is a privilege every day that I get to represent a region that I’m so proud of,” she said.
“We’ve developed strong relationships around the mayoral forum and created a collective voice that puts us in a better position to work with central government.”
Have Your Say
Consultation on the draft Annual Plan is open now. To view the plan and share your feedback, visit waikatoregion.govt.nz.