2025/26 Rates Increase

Napier City Council is facing cost increases. Unless we reduce our services, we must either increase rates, increase fees and charges, or take on more debt. All three options mean a cost to our community sooner or later.

Last year’s Three-Year Plan indicated an average rates increase for 2025/26 of 11.7%. More recently, some costs, such as electricity and gas, increased beyond inflation. This meant we were looking at an average rates increase of 15.22%. To reduce this cost for our community, we have looked to see where we could reduce our services or budget.

We’ve found several ways to do this. Labour cost efficiencies, changes to how we fund the Napier Assist Āwhina Tāngata service and reducing the 2025/26 Resilience Rate only to scheduled resilience projects mean we can lower the 2025/26 rates increase. We’re proposing to close Napier Library from July 2025 until our new library opens in 2027. These initiatives will help to bring down the rates increase without compromising core services. 

We also looked at our business and tourist facilities to see if any changes could bring down rates increases beyond 2025/26. The proposed changes to our facilities won’t bring about a rates reduction in 2025/26, but there will be financial benefits for ratepayers in the medium to long term. You can read more about these proposals here.

The proposed overall average rates increase for 2025/26 is now 7.9%. 

It’s important that we keep doing the basics well. The proposed rates increase will ensure we keep services and activities running that make Napier a great place to live, work and visit. We acknowledge this increase is still significant for many ratepayers. Information to help manage your rates bill can be read here.

Major costs and savings that make up the rates increase. 

What does this graph show?

The blue bars are the major costs causing the rates to increase. The green bars are the major savings we have been able to make or are proposing. This has helped us to lower the average rates increase to 7.9%.

Where your rates dollar goes

How every $1 of rates will be spent for 2025/26.