Whakatāne District Council staff have identified approximately $1.35 million in potential cost savings to support the new Council’s efforts to eliminate a long standing operating deficit and ease pressure on rates. This is on top of savings already identified at the end of last year.
Chief Financial Officer, Paul Davidson, says prior to Christmas the Council gave staff a clear direction to leave no stone unturned in looking for further savings. The savings come from a combination of tighter operating costs and improved economic forecasts.
“Through this process, around $623,000 in savings were identified via a detailed review of operating budgets, including staffing efficiencies and revenue opportunities. Several planned but vacant staff roles have been removed or frozen, allowing teams to adjust work programmes without impacting service levels. Additional savings were achieved through project deferrals, reprioritisation of transport and water supply projects, and a reduction in fleet renewals.”
He says the remaining approximately $725,000 comes from lower-than-anticipated inflation effects on Council costs compared to what was forecast in the Long Term Plan.
Mayor Nándor Tánczos expressed his thanks to staff and said that this result has come from elected members giving clear direction early in the process.
“We cannot try to keep rates down by borrowing to pay for an operating shortfall. That is short term thinking that only leads to even bigger rates rises in the future. This Council has indicated that we need to do the opposite – bring actual operating costs down and head the books back into the black. This is the fiscally responsible thing to do and ratepayers will be better off as a result.”
During the briefing, staff outlined four options for how the savings could be applied through the 26/27 Annual Plan. Following discussion, a majority of elected members indicated a preference for eliminating the operating deficit as quickly as possible and providing a contingency fund to recognise a volatile economic outlook, without increasing rates rises above what was announced in 2024. This means keeping the 9.4% rates rise projected in the Long Term Plan in order to ease the pressure on rates increases in the next Long Term Plan.
Mayor Tánczos says the Council is acutely aware of the financial strain many households are under.
“We know people are hurting, and we know that simply passing costs on through rates isn’t sustainable. That’s why staff were asked to go back through the budget line by line and find savings, and they’ve delivered. At the same time, we have a responsibility to make sure the Council’s finances are sound, so that we don’t lock ratepayers into on-going rates rises to fund borrowing for operations, which is not good practice.”
The Council’s indicative views on how to apply the savings will be considered further on 5 March when Council meets to consider the draft Annual Plan. The Council is due to adopt the Annual Plan 2026/27 in June 2026.