This year’s Annual Plan 2026/2027 has been agreed at the Budget & Performance Committee meeting today at Auckland Town Hall and has been formally approved by the Governing Body. The financial settings agreed ensure that the target of returning to average residential rates increases of no more than 3.5 per cent per year over the medium term remains achievable.
This annual budget includes:
- A 7.9 per cent rates increase—keeping Auckland significantly below the double-digit hikes facing communities across the rest of New Zealand.
- Funded operating, interest, and depreciation costs for the City Rail Link (CRL), the largest infrastructure project in New Zealand’s history, equivalent to a 7.8% rates increase.
- Capital investment of $3.6 billion into transport, water and community infrastructure
- A non-negotiable $106 million operating savings target to keep pressure on the council organisation to deliver better value.
Mayor Wayne Brown warns that while the 2026/27 budget was always going to be the toughest hurdle for the region, sudden global shocks made holding the line incredibly challenging.
"Global fuel pressures, on top of existing financial challenges added a massive $213 million risk to our budget," Mayor Brown says. "Without our $106 million savings plan, and before the added fuel pressure of $25m to $50m, that volatility could have forced a 15 per cent rates hike on Aucklanders. Instead of taking the easy way out and passing that straight onto ratepayers, we are choosing strict discipline and large operating savings.”
He says Auckland’s 7.9 per cent increase is a far cry from the double-digits crippling the rest of the country, who’re working ‘business as usual’.
“This year isn't business-as-usual for Auckland; we are funding the country’s biggest transport infrastructure project ever in the CRL while other councils are falling into double-digits just to maintain basic services, Auckland is holding the line."
To put this into perspective, over the last three years, Hamilton’s rates have increased 43.8 per cent, Tauranga’s 42.2 per cent, Wellington’s 48.1 per cent, Christchurch’s 30.9 per cent, Dunedin’s 45.3 per cent, and Queenstown’s 55.2 per cent. By comparison, Auckland's cumulative increase is 28.2 per cent.
The Mayor notes that claims that the 7.9% is the largest residential rates increase in the supercity’s history are incorrect, citing a 9.9% increase in 2015.
The budget includes capital investment of $3.6 billion to fund transport and water infrastructure, community services and regional assets. It focuses on critical transport renewals and bringing the CRL online, housing growth compliance, the Making Space for Water flood programme, activating the Central Interceptor’s second half, and funding the physical spaces and assets that Aucklanders interact with daily.
“We are focussing on the things that matter; the things people expect of a fully functioning city, while pushing an ambitious, if not verging on brutal, savings target. This budget is fiscally responsible while still delivering for Aucklanders the things they need and expect of us like pipes, roads and parks.”
Mayor Brown stresses there is no time for political grandstanding, directly addressing an amendment put forward by Councillor John Gillon. He says the amendment shows a misunderstanding of the current budget proposal.
“You can’t ‘defer’ a funding gap, there’s nothing to defer when it comes to major events funding and scrapping the food waste collections would cost in break fees. The amendment also includes finding a further $60 million in savings—that’s not only imaginary, it’s simply irresponsible. Our $106m annual savings target is the largest ever, and is already larger than the rates revenues of 54 other councils. A $166 million in savings would set our Chief Executive up to fail.
Further, calls to defer depreciation risk a downgrade of our credit rating, this would incur further costs to service debt and could wipe out all our savings.”
“Demanding independent taskforces entirely ignores that we already have a Value for Money Committee constantly reviewing our performance as well as service reviews by the Auditor-General, specifically provided for in Auckland Council’s legislation.”
The Mayor says budget discussions navigated substantial risk.
"Kicking the can down the road hasn’t worked for us in the past. Delaying even 1% now would have compounded next year's finances, destroying our ability to provide a sustainable rates pathway through the next long-term plan while also funding infrastructure Aucklanders need.”
The pushback comes as Auckland Council sits on a negative credit watch following central government signals around rates capping and core services legislation.
"We face an even higher level of scrutiny around our financial management. Now, more than ever, we must be responsible. I will not do what some other councils have done—defer costs, underfund depreciation, and pass the problem to future generations. Even though this is my last term, I am not willing to leave a mess behind. I am glad sensible heads prevailed today."
“Now this is passed I’m concentrating on things that matter, like the integration of Auckland Transport into council and the next LTP where I will outline how we will finish this fix.”