Wellington City Council has agreed to progress its draft 2026/27 Annual Plan and budget with a forecast average rates increase of 5.8 percent, down from the 7.4 percent proposed during public consultation.
The council says a further $9.6 million in savings was identified during the consultation period.
That includes $1.9 million in additional savings and revenue, mainly through reduced salary costs from vacancy management, meaning not all staff who leave will be replaced.
Another $6.4 million in depreciation and $1.3 million in interest savings came from reassessing assumptions about when capital projects will be completed.
Projects finishing later than first expected reduce interest and depreciation costs in the coming financial year.
The draft plan received 2783 public submissions.
Wellington Mayor Andrew Little said the response showed strong public interest in how the city responds to current financial pressures.
“Wellingtonians have given the Council a clear message to bring expenditure under control and keep the rates rises as low as possible,” Little said.
“The Council is making good on our commitment to do this, while continuing to invest in the services and infrastructure that Wellingtonians rely on.”
Little said the annual plan process began with a projected rates rise of 12.6 percent, which he said was “unpalatable for most Wellingtonians”.
Te Taurapa Planning and Finance Committee Chair Diane Calvert said she was pleased the proposed increase had been reduced further.
“We know Wellington has seen significant rates increases in recent years and coupled with the high cost of living, and we have listened to what Wellingtonians are telling us about Council rates and spending,” Calvert said.
Calvert said the budget reduced operational expenditure, increased revenue through some higher fees, and continued major infrastructure projects.
Those include the refurbishment of the Begonia House, Te Whare Wai Para Nuku sludge minimisation facility, and Te Whare Whakarauika Wellington Town Hall.
The council also carried out a representative survey of 524 people alongside the consultation.
Support was strongest for a proposed short-term accommodation rate, with 61 percent of submitters and 72 percent of survey respondents saying they strongly or somewhat supported it.
Views on cycleway spending were more divided. In consultation, 37 percent supported keeping the cycleway programme as budgeted in the Long-term Plan, while 32 percent supported reducing the programme for 2026/27.
A further 30 percent did not support either cycleway option. Of those who commented, most supported reduced spending on cycleways.
There was also majority support for increasing contaminated waste fees incrementally over the next three years.
Cremation fee changes received mixed feedback, with submitters almost evenly split between a 20 percent increase and keeping increases to inflation.
The draft Annual Plan is due to be considered for adoption at a council meeting on 25 June 2026.
