Financial Overview
Regional rates and the water levy will increase over the next 10 years to fund Greater Wellington's capital expenditure programmes in Transport, Water and Flood Protection. The increases are driven by the costs for upgrading the rail infrastructure (new trains, double tracking, power supply, signalling), as well as for the continuation of flood protection programmes (Wairarapa and the Hutt Valley) and for water supply infrastructure to bring more water into the system.
Further details on this work, including the capital expenditure required, can be found in the relevant group of activities. The capital expenditure programme results in debt peaking at $206 million in 2016/17.
The other main reason for the increase in rates is the impact of inflation on Greater Wellington's operating costs.