Taking responsibility now avoids passing costs to future generations.

This year’s Annual Plan 2026/2027 has been agreed by the council’s Governing Body and will come into effect on 1 July.

This year’s budget includes:

A 7.9 per cent rates rise helps maintain essential services and infrastructure, while keeping Auckland’s rates below the double-digit increases seen elsewhere in New Zealand.
The increase is predominantly funding cost related to the new City Rail Link (CRL) - New Zealand’s largest-ever infrastructure project set to transform Auckland’s whole transport network, improve connectivity and drive regional growth.
A $3.6 billion investment into transport, water and community infrastructure, helping improve everyday services, support growing communities and a more resilient Auckland.
A $106 million operating savings target ensures the council continues to drive efficiencies and deliver better value for money, while maintaining services Aucklanders rely on.

Big projects for the year ahead:

completing the Central Interceptor project that will reduce wastewater overflows into Central Auckland
projects to provide flood resilience in Māngere and the Wairau Valley
city centre regeneration will progress, including completing public spaces around CRL stations and further development of High Street and Te Toangaroa on Auckland’s waterfront.

Mayor Wayne Brown warns that while the 2026/27 budget was always going to be the toughest hurdle for the region, the sudden global shocks have 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 given 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.”

The financial settings agreed mean it is achievable to return to average residential rates increases of no more than 3.5 per cent per year over the medium term.

“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,” says Mayor Brown.

"Kicking the can down the road hasn’t worked for us in the past. Delaying even 1 per cent 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 with Moody’s Investors Service 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.”

Q&A

Why do rates keep rising?

Fundamentally, every organisation needs to keep pace with things like inflation and increased prices.

In setting the 2026/27 budget, the council was faced with over $213 million of budget pressures from fuel, inflation and existing funding challenges. Essentially, a potential 15% rates increase has managed to stay at 7.9%.

The introduction of the City Rail Link added a further $235 million of operating costs to the budget as we introduce an asset that is going to transform our public transport network. The CRL will change how we all move about the region – even if you don’t take a train, your commute may be less congested or your trip into a show just got easier.

Beyond 2026/27, we are forecasting 3.5% rates increases in the years ahead.

What are rates delivering?

Rates contribute about 40% of council income and contribute significantly to delivering a better Auckland. Rates help us to improve quality-of-life and make Auckland a great place to live.

Your rates enable us to invest in services and activities for your communities – improving public transport, maintaining parks, museums and art galleries, environmental services, rubbish collection and community facilities.

Read more about what we’re doing next year on OurAuckland.

What will we get out of the CRL?

As a significant investment for Auckland in 2026, the CRL will deliver more frequent trains across the network, new routes across town on a single train and more direct journeys into the city centre.

Once the CRL opens, Auckland’s more integrated transport system will benefit the whole region.

The CRL will double the number of people who’ll experience a 30 minute or less train journey to a station in the city centre. Aucklanders living further from rail lines will have improved service connections between trains and buses. For example:

if you're travelling from Henderson peak morning to midtown, you’ll save 24 minutes in travel time using the new Te Waihorotiu Station.
if you’re based in South Auckland, you’ll get new direct train connections to more places in the city, including Grafton, Karangahape Rd and Midtown.
for people living on the North Shore or in the eastern suburbs, they can connect to trains via rapid and/or frequent buses.

How does the CRL benefit the economy?

Increased train frequency and improved access will encourage growth in jobs, and help reinvigorate Auckland. The infrastructure investment will deliver a significant return on the council’s 50 per cent stake in the project.

CRL is more than just a 3.45 km tunnel; it is the centrepiece of a significant improvement in public transport connectivity, capacity and level of service.

The city centre generates 21 per cent of Auckland’s GDP and has by far the highest concentration of jobs in New Zealand. The CRL significantly increases connectivity for people to reach the city centre by public transport.

Waitematā Station tracks will continue through, increasing train frequencies into the city, to the south and west of Auckland, and transport interchanges at Wellesley Street and Karanga-a-Hape have been developed to host high volumes of people and connecting buses.

It's not just for Aucklanders' daily commute, together with the recently-opened NZ International Convention Centre, and private-sector developments in the area, the CRL is helping us attract more events to the city, making it easier to access conference and event venues, and for visitors to explore the region on public transport.

What is Auckland Council doing to tighten its belt?

As a council, we continue to focus on delivering better transport, reliable infrastructure, local services, and getting the basics right. This year we will deliver $106 million in savings, while also seeking out ways to deliver even more value to our ratepayers.

The $106 million savings targets is already larger than the rates revenues of 54 other councils. 

Savings reduce what could have been an even higher rates rise – $106 million equates to saving 3.5 per cent of rates.

The internal rigour to deliver better value through projects and investments also continues. Our ongoing focus on driving value for every dollar to manage new priorities and changing demands for the future is actioned through value for money reviews, a Better Value Projects approach, a focus on non-rates revenue and sales of under-utilised assets.