Have your say on next year’s rates and spending

Published on 11 March 2026

Man wearing hi-vis vest in roadworks on digger shovelling metal to reseal the road.

Palmerston North residents and ratepayers are invited to share their views on Council’s proposed Annual Budget for 2026/27 - including whether we should increase spending on renewing the city's footpaths. The budget sets out how rates will be spent and how we’ll fund the essential services and projects that keep our city running.

Mayor Grant Smith says this year’s budget has been shaped with cost pressures front of mind.

“We know many households and businesses are still doing it tough. We’ve worked really hard to keep rates increases as low as possible while maintaining the services and infrastructure our city relies on.”

While some projects have been deferred, investment in critical infrastructure continues - particularly water, wastewater and transport. More than 70% of proposed renewals spending is focused on essential water and transport networks to keep Palmerston North safe, reliable and moving.

Lower-than-expected interest rates on Council debt have helped ease some pressure, but rising costs for electricity, gas and other essentials remain. We’re also responding to lower levels of Central Government funding and preparing for the transition of local water services to the new Central Districts Water entity in mid 2027.

“By deferring some projects, taking advantage of lower borrowing costs and finding savings where we can, we’ve reduced the overall impact on ratepayers.”

Our Long-term Plan initially signalled an 8.5% total rates increase for 2026/27. We’ve reduced that to a proposed 4.9% increase for you to consider.

Mayor Smith notes this does not mean every property will see a 4.9% increase.

“We’re in the final year of shifting more of your rates to be based on your property’s Capital Value. This means your rates could in some cases decrease or increase a bit more than the average.”

Check out the proposed rates for your property

Elected members are also seeking specific feedback on whether to increase spending on footpath renewals.

We have 598 kilometres of footpaths across the city, and current assessments show that 85% are in either excellent, good or average condition, while 15% are in poor or very poor condition.

At current funding levels, it could take around 16 years to clear the existing backlog, and that doesn’t account for new repairs needed over that time.

“This is why we’re asking the community whether we should invest more in renewing footpaths, even if it means a small increase in rates.”

Your feedback will help shape the final budget.

“These decisions are about finding the right balance between what our city needs and what our community can afford. We want to know what matters most to you, and we will be reading and considering all feedback.”

You can make a submission:

Online at pncc.govt.nz/annualbudget
By attending a drop-in session to speak with councillors and staff
By picking up a hard copy form from any library or the Customer Service Centre at 32 The Square

Submissions close at 4pm on 10 April.