Investing in Selwyn’s Future: Mayor Broughton Responds to Rates Criticism
Selwyn District Council media release: 1st July 2025
Selwyn Mayor Sam Broughton says the Council is focused on investing in essential services to support the district’s rapid growth and is rejecting the Taxpayers’ Union's claims of poor financial management.
“Every rate increase is challenging, and I understand the pressure that puts on households,” Mayor Broughton said.
“But we’re not spending recklessly. We’re investing in what our community has told us matters: fixing roads and maintaining our water and wastewater supplies.”
Selwyn District Council’s 2025–26 Annual Plan includes a 14.2 percent average rate increase and a $145.8 million capital investment programme, more than 80 percent of which will be allocated to roads, water, and wastewater services.
"Our average rate increases over the last 10 years have been about 6%. Over the next eight years, they are planned to average less than 7%, and will reduce each year reaching 3.6% by 2034.
“The rate increases across the two previous years are catching up, because of only 1.6% rates increase during Covid, one-off infrastructure investments, and inflation.”
Selwyn’s population has doubled in the last 14 years and is the fastest-growing region in New Zealand.
“Growth brings real costs. Maintaining more than 2,500 kilometres of roads and 120 bridges, and upgrading sewer infrastructure is now at least 30% more expensive than just a few years ago.”
Mayor Broughton says calls for capping rates ignore the reality for fast-growing areas like Selwyn.
“Capping rates might sound good in theory, but it would mean delaying important work - leading to bigger costs down the line.
“We’d just be passing the problem, and higher costs, onto our kids, and grandkids.”
The Australian experience of rate capping has led to underinvestment in essential infrastructure. Victoria and NSW have rate caps, yet have had higher rate increases than South Australia, which has no rate cap, said Mayor Broughton.
Mayor Broughton also renewed his call for the Government to return a portion of GST from new builds to local councils.
“If we received half the GST on 1,000 new homes, at an average cost of $500,000, that would be $37.5 million a year. That would help fund the infrastructure that new developments need, instead of putting pressure on existing ratepayers. Growth should help pay for growth.”
Community feedback is driving decisions
The Council received over 1,500 submissions during last year’s Long-Term Plan consultation.
“The message was clear: focus on roads, water, and waste. So that’s exactly where over 80 percent of this capital budget has gone. This year's Annual Plan continues to implement that feedback.”
He said the Council decided not to re-consult on the 2025–26 Annual Plan because the direction was already clear.
“Engaging with our community is critical, as is respecting the feedback we’ve already received. Repeating the consultation less than 12 months later would waste time and money when people have already told us to get on with it.
“We also consult across the year on various individual matters – we are committed to listening to our community.
“We encourage residents to get in touch, ask questions, and have their say, whether it’s through formal submissions, community forums, or directly with myself or councillors.”
Water services decision in line with national trends
The Mayor also addressed the recent decision to establish a Council-Controlled Organisation (CCO) to manage Selwyn’s drinking and wastewater services, in accordance with the Government’s “Local Water Done Well” policy.
“This is about long-term affordability. While we appreciate all feedback, less than 1% of residents submitted to the consultation, which suggests the majority are comfortable with the approach,” he said.
“Sixty-nine per cent of councils across New Zealand are adopting the same CCO model - it’s about securing better borrowing capacity and delivering cost savings within a decade.
For some people, in-house delivery may feel simpler, but the analysis shows it would lead to higher costs over time.
“We’re acting now to ensure services remain reliable and affordable in the future,” says Mayor Sam Broughton.
Note: The last 10 years of rates increases data is from 2015 to 2024. The next 8 years of rates increases is from 2026 to 2034 and is what is signaled in the Long-Term Plan 2024-2034. The rates increase for 2025 will be confirmed following the end of the financial year.