With new cost pressures increasing the projected 2025/26 rates rise to a current draft figure of 15.9%, the committee directed officers to come back in February with options for keeping next year’s increase below the 12.8% signalled in the original 2024-34 Long-term Plan.
As part of the Long-term Plan Amendment process, the committee considered options to address key financial risks: underinsurance and an undiversified investment portfolio. The main mechanisms to do this are through debt headroom (keeping borrowing under a set limit, below what the Council is able to borrow) and through establishing a disaster resilience fund (a diversified investment fund) by selling assets and reinvesting the proceeds.
It agreed the following options would be put forward for consultation with the community:
• Option 1: Self-insurance using large/maximum debt headroom, achieved through capital programme reductions; plus a small investment fund, established through selling some ground leases. This option does not include the sale of airport shares. This would be the Council’s preferred option.
• Option 2: Self-insurance using a combination of debt headroom and a medium investment fund. This would be achieved by smaller capital programme cuts and selling some airport shares alongside ground leases. It is not the Council’s preferred option.
• Option 3: Self-insurance using a large/maximum investment fund, achieved through selling the Council’s full minority shareholding in Wellington Airport alongside ground leases, plus existing debt headroom (with no cuts to the planned capital programme). This is the status quo in the current Long-term Plan adopted in June and is not the Council’s preferred option.
“Through an amended Long-term Plan, we are working to set a clear roadmap for our city’s future,” says Mayor Tory Whanau.
“The Long-term Plan outlines the strategic investments needed to deliver the services and infrastructure that will meet our city’s growing needs. It allows us to make informed decisions and align our budget with our priorities.
“It has been a challenging few weeks but I’m proud of how we are working together to progress a Long-term Plan Amendment that will continue to provide much needed investment in the city’s infrastructure, transport and climate resilience,” says Mayor Whanau.
“In March, we will be seeking input from the public through consultation to make sure the Long-term Plan Amendment reflects the needs and priorities of our city.”
The Annual Plan and Long-term Plan Amendment will go out for public consultation in March/April 2025. Elected members will make final decisions once community feedback has been considered.
After being deliberated by Councillors, the amended Long-term Plan and Annual Plan will be audited prior to final adoption in June 2025 and will be in place from July 2025.
More information about the 2024-34 Long-term Plan amendment and 2025/26 Annual Plan process is available on this website.