Raglan locals are about to feel the squeeze as rates across the district are set to climb in the coming years. But what’s behind the rise? And how will it impact everyday Raglan residents?
While a general rate hike of 4.25% is forecast for 2025-26, the real sting comes from Three Waters services. Expect a 13% increase for water services, which could add around $500 per year for those on council water supply.
Whaingaroa Ward Councillor Lisa Thomson joins us to explain the reasons behind the projected increases. She says that major contributors to the rise are a mix of long-needed infrastructure upgrades and shifting government policies.
Lisa points out that the pain could be even sharper for some households. The general rate increase isn't just about the percentage hike—it’s also tied to the value of your property. If your home’s capital value has increased faster than the district average, your general rate could jump even more. On the other hand some ratepayers will experience a smaller increase if their property values have increased less than average
“I understand that this is massive, particularly for our elderly, or those on fixed incomes.” Said Lisa.
Three Waters: The Big Issue
Three Waters has been the elephant in the room for many local councils. Lisa says the government's decision to scrap the previous government’s Three Waters reforms and shift the responsibility back to local councils has placed a heavy burden on ratepayers. Local councils must now cover the cost of modernising a system that has been underfunded for decades.
For Raglan, the cost of modernisation means an additional $500 a year for those on council supply. And it’s not just a one-off expense. Lisa says the work that’s needed to improve and maintain our infrastructure won’t stop after this year—adding that it requires sustained investment.
While the Waikato District Council (WDC) works towards establishing a Council Controlled Organisation (CCO) with Hamilton City Council, Lisa warns that the efficiencies gained from this collaboration, while important, won’t change the cost of "pipes in the ground" and the other construction work that still needs to be done.
It’s also important to note that the government's decision to raise the debt ceiling for all councils means costs can be spread out over several years, rather than being paid upfront. However, this will result in increased interest payments, which will be borne by current and future ratepayers.
But it's not just water that’s costing more. Raglan, like other small towns, has a huge range of services that need to be maintained. From roading to wastewater, libraries and community halls, it all adds up. “It’s a complex system,” Lisa explains. “Council has to manage a lot of moving parts and funding them all comes from rates.”
Rate Hikes: Why Can’t We Just Cut Costs?
So, why can’t the council just cut back on projects to ease the financial burden on residents? Lisa says it’s not that simple. “We’ve already trimmed back as much as we can. The challenge is that there are essential projects we simply can’t delay any longer.”
From road maintenance to the new wastewater system, councils are required by law to maintain a wide range of services. Cutting back on these would not only compromise safety and quality of life but could also create bigger, more expensive problems down the road.
“We pushed hard to keep the rate increase down to 4.25%,” Lisa explains. “Anything higher than that would have been really tough for the community.”
While the immediate future looks like more belt-tightening for Raglan residents, Lisa says the council has a rates rebate available for those on low incomes and encourages residents to apply if they qualify.
Raglan residents will have the chance to voice their concerns and provide feedback on the council’s LTP proposals. But with the reality of underfunded infrastructure, government policies and rising property values, it looks like ratepayers will have to dig deep for the foreseeable future.
Raglan’s Housing Crisis: A Call for Action
At a recent Community Board meeting, housing was notably absent from the discussions, despite being an ever-growing concern. The rising dominance of Airbnbs and the preference for professional couple tenants have made it harder for local families to secure housing. This shift is changing the community’s character.
Lisa says that while the council has a housing strategy, it lacks the mechanisms to address landlord preferences or regulate short-term rentals. Community-driven initiatives like the Whaingaroa Raglan Affordability Project could offer potential solutions, but any move to regulate Airbnbs would require significant effort and resources.
Alcohol Bylaw Proposal: Expanding the Boundaries
Another issue raised at the recent community board meeting, council staff proposed extending Raglan's permanent alcohol ban, based on last year's feedback. For Police, the alcohol ban is a mechanism to intervene before excessive drinking leads to anti-social behaviour. The initial proposal aimed to stretch the ban from Wainui Bridge to the Wharf, covering more of Wainui Road. However, some Community Board members opposed the broad scope, leading to a revised proposal. This now targets James Street, up Bow Street to the water tower, Norrie Ave, and also Cliff and Puriri Streets. The revision, incorporating police input, will be part of a community consultation from May 1 to June 1.
Additionally, the seasonal alcohol ban - currently running December 23 to January 6 - could be extended until February 10th, with feedback included in the consultation.
Infrastructure Projects: Hills Road Roundabout
Council staff recently discussed a proposed roundabout at the busy intersection of Hills Road and Main Road, slated for the 2027-2028 period in the Long Term Plan (LTP). However, its future remains far from certain, with questions raised about whether it’s the right investment for the community at this time.
Lisa, alongside fellow Community Board members, expressed concerns over the allocation of nearly $7 million for the project, questioning if this funding might be better spent on more pressing local needs. The roundabout is currently included in the LTP, but whether it proceeds as planned remains to be seen.
Further frustration was voiced regarding the lack of transparency around the council’s transport priorities for Raglan. Lisa called for more information about a transport strategy, which the council developed some time ago but which staff have yet to share with the community or the Community Board.
Fluoridation of Water Supply
The Waikato District has not been mandated to fluoridate its water supply. While some councils have been instructed to add fluoride to their water supplies recently, Raglan is not one of them, and there are no plans to change that.
Karioi Classic Cycle Returns to Raglan in July 2025
Lisa was pleased to announce that the Karioi Classic cycle event is making a return to Raglan on Sunday, 27th July 2025, with two routes: 85 km and 57 km. The 85 km route, known for its tough terrain, was once dubbed the “Gut Buster.“
The event is now managed by the Whaingaroa Raglan Destination Management Organisation, with Dirk from Cyclery Raglan still involved. Dirk and Lisa ran the event for 12 years before stepping back, but they’re excited to bring it back to support the local business community during the winter months.
“We’ve already had a great response, and the website went live this week,“ says Lisa. “Now’s the time to start training for those wanting to take part!“
The Karioi Classic promises to bring cyclists and visitors to Raglan while supporting local businesses.