Council confirms budget for the year ahead
Published on 04 June 2025
At today's Council meeting, elected members adopted the annual budget for 25/26, and reduced the proposed total rates increase that was consulted on from 7.7% to 6.6%.
This follows on from a full day of debate and decision-making at an earlier meeting on 14 May.
Mayor Grant Smith says elected members took community feedback seriously and worked together to find a balanced approach.
“I want to thank the public for all their feedback and those who came and spoke at hearings. Together councillors worked to take that feedback on board and also ensure the best outcomes for our city and community.”
The decisions made will shape how we deliver services, maintain infrastructure, and invest in Palmerston North's future over the next financial year.
What’s changed in the budget?
Some of the key changes include:
- Deferring some capital programmes based on updated project timeframes, and reducing other capital programme budgets, resulting in a capital programme of $97M, reduced from $115M.
- Keeping the professional services budget for consultant support at the level included in the draft annual budget.
- Adding $372,000 to the transport budget for street tree maintenance, which was covered by reductions in other capital areas.
- Providing civic support for the turf at Palmerston North Boys High School.
Mayor Grant Smith says the budget aims to strike a balance between keeping costs manageable for residents and investing in what matters for the city.
“We’ve listened to the community and made some careful decisions to make sure we can keep Palmerston North moving forward, while recognising the pressures households and businesses are facing."
New funding includes $7,500 to help MaLGRA keep its space at Hancock Community House, and $50,000 to support Massey’s Te Waimana o Turitea Botanical Gardens project. Council also agreed to contribute $25,000 to Manawatū Rugby to support community rugby and the Cyclones and Turbos teams.
Other additions include $20,000 to support the Te Ahu a Turanga gateway carpark, and $90,000 to investigate off-road pickup and drop-off options near Palmerston North Boys’ High on Featherston Street.
Council officially set rates for the year at this same meeting. Rates for 2025/26 will be based on updated property values from September last year and will include the second step in shifting more of the rates calculation to a property’s capital value. Because of this, the amount payable will vary from property to property.
A recording of today’s meeting and the deliberations can be found on our YouTube channel.