Bay of Plenty Regional Council has announced a record low 0.4 percent average rates rise for the upcoming financial year, including a reduction in overall targeted rates for the region.

The council held deliberations on its Annual Plan 2026-2027 last week, setting the council’s work programme and budget for the year ahead, incorporating community feedback.

Regional council chairwoman Matemoana McDonald said councillors had taken a disciplined and pragmatic approach in response to ongoing cost pressures facing households and businesses.

“We know many people across our region are doing it tough, and that has been front of mind throughout this process.

“Councillors have worked hard to make responsible, balanced decisions, prioritising the services our communities rely on, while keeping costs as low as possible.”

Careful financial decision-making, finding efficiency savings and continued dividend contributions from Quayside Holdings contributed to an average rates’ increase of around 0.4 percent.

The 8.4 percent general rates increase originally forecast in the Long-term Plan 2024-2034 has been reduced to 2.9 percent (including growth and inflation), with total targeted rates decreasing by 2.2 percent.

McDonald said these figures reflected a strong focus on value for money and careful financial management.

“This is about making every dollar count. We’ve made some difficult trade-offs to focus on core services by deferring or reducing non-essential spending where we can.

“At the same time, we’re continuing to deliver on the work that matters most – protecting our environment, supporting regional resilience and planning for the future.”

A key outcome of the deliberations was the establishment of a new Regional Benefit Fund of up to $20 million for 2026-2027. The fund would support large-scale projects that delivered environmental, economic, social and cultural benefits across the region, and would be funded through existing reserves and investment returns, rather than rates.

The Annual Plan would be formally adopted on June 25 and will take effect from July 1, 2026.