Next year's budget is confirmed

Council adopted the 2026/2027 Annual Budget on 3 June 2026.

Earlier this year, we asked for your feedback on our draft annual budget, which outlined how your rates would be spent and how we would fund the essential services and projects that keep Palmerston North running smoothly.

Thank you to everyone who provided feedback through submissions and drop-in sessions. Council adopted the 2026/27 Annual Budget on 3 June 2026, and your feedback helped inform the final decisions.

Annual Budget 2026-27(PDF, 4MB)

Changes made following community feedback

After two days of public deliberations in May, elected members reviewed the draft budget and made a number of changes. As a result, the total rates increase has been reduced to 3.9%, down from the 4.9% proposed for consultation and well below the 8.5% increase signalled in the Long-Term Plan.

Key changes include:

Increasing the footpath renewals budget by $500,000 per year, subject to annual budget reviews.
Adding funding for a city centre bus waiting lounge. A provision of $282,000 has been made for lease and fit-out costs, with the majority of funding coming from contributions from partner organisations.
Adding $36,000 for road safety improvements along Ascot Street and $95,000 in the Kairanga Bunnythorpe Road area.
Reducing the consultancy budget by $500,000.
Adding $100,000 for improvements at Farnham Park.
Reducing the international relations budget by 20%.
Adding $100,000 towards the purchase of 182–226 Akers Road, Linton (land alongside the Manawatū River).
Adding $15,000 to support Palmerston North’s Heritage Festival, with half of the funding expected from external sources.
Not proceeding with funding for the Massey University Te Waimano o Turitea Botanical Gardens programme.
Adding $25,000 to support the MASH Trust LUCK venue.
Capping the remuneration budget.
Adding $1 million to cover increased fuel costs.

We’ve also had another look at some of our revenue assumptions and our projected insurance costs now that we have some more up-to-date information. This has helped to get the total rates increase down to 3.9%.

Elected members also decided to reduce the UAGC component of rates for each property from $300 to $200, meaning a greater share of rates is based on property value.

Check out the proposed rates for your property

Some fees and charges are changing from 1 July

We also consulted on a number of proposed changes to fees and charges. Following consideration of community feedback, elected members approved the proposed changes to trade waste service fees and a range of miscellaneous fees and charges. However, the proposed changes to planning fees were not approved. The approved fees and charges will take effect from 1 July 2026.