Formal consultation on the Long-term Plan 2024-34 (LTP) amendment and Annual Plan 2025/26 is now open until midnight, 21 April 2025.

Background

Our LTP outlines to our communities how we intend to use rates, borrowing, and other funding to improve and maintain Pōneke for the next 10 years. Each year, the Council also produces an Annual Plan which sets rates, fees, and charges for the upcoming year, as per the direction set in the LTP.

Wellington City Council’s vision for Pōneke is a creative capital where people and nature thrive. To achieve our vision we need to balance our priorities. This means managing our finances so we can invest for both current and future Wellingtonians. The Council faces major financial risks due to under-insurance and a lack of diversified investment.

The 2024-34 LTP proposed to manage these risks through the establishment of a new, large investment fund, created through the sale of our minority shareholding in Wellington International Airport Ltd.

On 10 October 2024, Councillors approved a Notice of Motion to begin a process to remove the sale of the airport shares from the plan. This significant change means we need to amend the adopted LTP.

The amendment focuses on options to address our two financial risks. We are not reviewing or changing the entire 2024-34 LTP.

We are also seeking community feedback on several other smaller changes as part of our Annual Plan update.

What's up for debate?

Long-term Plan 2024-34 amendment

The Council faces major financial risks due to under-insurance (a gap of between $1.8 billion and $2.6 billion) and a lack of investment diversification. If a natural disaster occurs, there will not be enough money to rebuild essential infrastructure.

Our current investment portfolio is 89% ground leases and airport shares and based in Wellington – making it vulnerable to the same localised risks.

To manage our insurance and investment risks, there are three options:

Our preferred option is to increase borrowing capacity by reducing capital spending ($385m) and creating a small investment fund ($68m) with the proceeds from the sale of nine ground leases.

Reducing capital spending by $385m would mean changes to the following capital projects:

For more information on these proposed capital spending reductions, read the full consultation document.

Debt change:

This option changes our debt limit from 225% to 200%. Meaning we will borrow up to $200 for every $100 of revenue we get.

Rates change:

The proposed changes to the capital programme would result in a 0.2% or $940k reduction in rates required for 2025/26. This is included in the proposed rates increase of 10.8% as per the Annual Plan.

Balance borrowing and investing by reducing capital spending ($200m) and selling 50% of airport shares OR most of our ground leases to create a medium-sized investment fund ($202m–$314m).

Debt change:

This option changes our debt limit from 225% to 215%. Meaning we will borrow up to $215 for every $100 of revenue we get.

Rates change:

The proposed changes to the capital programme would result in a 0.1% or $470k reduction in rates required for 2025/26 compared to the LTP. This option would increase the proposed Annual Plan rates increase from 10.8% to 10.9%.

To learn more, read the full consultation document.

Create a large ($560m) investment fund by selling all airport shares and nine ground leases, while maintaining current capital spending.

Debt change:

This option keeps our debt limit at 225% to 200%. Meaning we will borrow up to $225 for every $100 of revenue we get.

Rates change:

No rates impact as per assumptions outlined in the consultation document.

Annual Plan 2025/26

The Annual Plan contains the proposed 2025/26 budget and outlines the impact on rates and the Council’s debt. The proposed average rates increase in the budget is 12.2% (10.8% plus 1.4% for the sludge levy).

The cost of delivering and running Council services in 2025/26 is budgeted to be $1b or $12.68 per resident per day. This is an $54m increase from what was set for Year 2 of the 2024 Long-term Plan, which primarily relates to increased utilities, increased funding for Wellington Water Limited, and depreciation costs.

We are seeking community feedback on several other smaller changes as part of our Annual Plan update.

These changes include:

  • Establishing Mātai Moana, a new reserve on Te Motu Kairangi/Miramar Peninsula.
  • Introducing commercial rates for short-term accommodation providers.
  • Parklet fee structure changes.
  • Other changes to fees and user charges.

For more information on these proposed changes, read the full consultation document.

Information to support your submission

The consultation document highlights the key challenges we are facing, what the realistic options are to help solve them, and any associated costs. If you can't find what you're looking for, ask a question or come along to a drop-in session.

Consultation document

Detailed information on the proposed options to inform your submission.

  • Ask a question

    Can't find what you're after? Our team can answer your questions.

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  • Drop-in sessions

    Come along to a drop-in session near you to learn more.

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Have your say

There are multiple ways you can make a submission. Feedback closes midnight, 21 April 2025.

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If you would prefer to send your feedback directly, you can email us:

Contact Information
Email feedback@wcc.govt.nz

Next steps

Councillors will make final decisions once community feedback from the consultation has been considered.

The amended Long-term Plan and Annual Plan 25/26 will be audited prior to final adoption in June 2025. It will be in place from July 2025.

Latest updates

Updates will be provided following Long-term Plan, Finance, and Performance (LTPFP) Committee meetings and workshops/briefings.