Selwyn District Council has adopted its Annual Plan for 2025–2026, locking in a 14.2 percent average rates rise and triggering strong criticism from residents and advocacy groups.

The plan confirms $145.8 million in capital investment over the coming year, with more than 80 percent allocated to transport, water services, and waste management.

Mayor Sam Broughton said the plan reflects the priorities of residents and balances growing demand with cost pressures.

“We’re continuing to deliver on what the community told us matters most, while also managing the impacts of growth, rising costs, and reduced government funding,” Broughton said.

Selwyn is the fastest-growing district in New Zealand, with a population increase of 165 percent over the past two decades. The Mayor said that growth brings real cost increases.

“Just maintaining the services we already provide has become more expensive,” Broughton said. “Inflation has significantly increased the cost of things like building bridges, roads, and sewer systems.”

“Data from Infometrics shows that in the past three years:Bridge construction costs have increased nearly 40 percent; Sewer systems are 30 percent more expensive; Roads and water supply infrastructure costs have risen by around 27 percent.

“With over 2,500 kilometres of roads and 120 bridges in Selwyn, these cost increases are significant,” Broughton said.

While Broughton defended the 14.2 percent rise, he said the Council was working to keep future increases lower. “We’re working hard to find savings and be smarter with how we spend.”

Public backlash intensifies

But residents and watchdog groups have blasted the Council over the sharp increase and the lack of public consultation.

Harvey Polglase, Chair of the Darfield Residents Association, said residents feel shut out and ignored. “The Darfield Residents Association is appalled at the level of rate increases being inflicted on local ratepayers and the admission by the Mayor that rates are becoming unaffordable,” Polglase said.

“Existing ratepayers are being made to pay for the infrastructure needed because of unprecedented growth in the district, a cost which should have been borne by developers.

“Council have ignored the wishes clearly expressed by the majority of submitters in so-called ‘consultation’ over whether to implement a local water CCO and also denied any opportunity for input over the current rate rise, despite saying last year this would be possible.

“Residents have lost faith in the ability of most of the current Council to listen to them or to understand this is meant to be a democracy.”

The decision to move forward with the establishment of a Council-Controlled Organisation (CCO) for water services has also fuelled discontent, with opponents saying it lacks a clear mandate.

Taxpayers’ Union slams Council over ‘runaway’ spending

The Taxpayers’ Union also launched a scathing attack on Selwyn District Council, calling for nationwide rates caps to rein in what it calls financial recklessness.

“Selwyn demonstrates exactly why we’re campaigning for rates capping legislation across New Zealand. Ratepayers there are being absolutely hammered,” said Tory Relf, spokesperson for the Union.

“A 14.2 percent rates hike this year, on top of last year’s 14.9 percent, is simply unsustainable and the fact that Council is projecting a compound 70 percent increase over just four years should be setting off alarm bells.

“What’s appalling is the complete lack of transparency around such decisions. The Council didn’t even consult the public on this year’s Annual Plan despite pushing through a 14.2 percent increase. Taxpayers fund the council; they deserve a say. Shutting them out of the process is undemocratic and, frankly, arrogant.”

She also criticised the Council’s budgeting process. “Councillors say themselves that Selwyn District Council builds its budgets by deciding what to spend first, and then sets rates to match. That’s utterly disgraceful. Households don’t get to increase their income to fit their wishlist, they have to make the hard choices. Councils should be held to the same standard.”

“Debt is also exploding, projected to rise from $155 million to $634 million over 10 years. That’s an eye-watering increase, and yet there’s no sign of meaningful oversight, no robust scrutiny of spending, and no engagement with the public about alternatives.

“The Mayor says growth is driving costs, but growth also expands the rating base. Where is the evidence that Council is managing that growth efficiently, or exploring smarter ways to deliver infrastructure? Ratepayers are being told to simply trust the Council while watching their bills skyrocket. That’s not good enough.”

“It’s clear that councils are not going to rein in their spending voluntarily. That’s why we need nationwide rates caps, to enforce financial discipline, protect households, and force councils to focus on core services first. Councils must live within their means and be accountable to the ratepayers who fund them.”