Road funding shortfall leads to annual plan rethink

Some relief could be in store for Hurunui ratepayers next year as the district council reconsiders its roading priorities.

The Hurunui District Council forecast an average 14.49 per cent rates hike for the 2025/26 financial year in the 2024/34 Long Term Plan.

But after receiving a significantly reduced subsidy from Waka Kotahi NZ Transport Agency, council chief executive Hamish Dobbie said staff are having another look at the roading programme.

‘‘In our Long Term Plan consultation, our residents signalled they wanted us to invest in our roads, so now it is about figuring out what is a wise investment with the funding we have.’’

He said the council will need to reconsider what it can afford to fund, based on the lower-than-expected subsidy.

The Hurunui council receives a 52 per cent subsidy from NZTA on approved projects, with ratepayers paying the balance.

The council has met with NZTA since raising concerns about the funding it received in the 2024/27 National Land Transport Programme.

It had sought a 184% increase, but NZTA director regional relationships James Caygill said this was ‘‘unaffordable’’.

Mr Dobbie said ratepayers were already paying two-thirds of the district’s roading budget as a number of projects were not funded by NZTA.

Options for a revised roading programme will be presented to the council to consider ahead of next year’s annual plan.

Mr Dobbie did not expect rates to rise any more than the 14.49% signalled and will likely be less.

Funding has been reduced for low cost, low risk projects, which cost less than $2 million, so these will need to be reconsidered, he said.

‘‘It means the Government doesn’t value that type of work, so we need to consider how we value it.

‘‘The Government values the sealed road networks, so how do we allocate ratepayer money to those aspects of our network versus our unsealed roads.’’

Mr Dobbie said Hurunui, a large rural community with around 13,000 residents, has around 900km of unsealed roads and 600km of sealed roads.

The council has estimated it needs about $3 million a year to maintain and upgrade its ageing network of 286 bridges.

‘‘I think we have an understanding of what the issues are, but I wouldn’t say we are any closer to finding a solution,’’ Mr Dobbie said.

He said he understood NZTA is restricted by Government funding.

‘‘This Government claims to be about infrastructure, so hopefully they can find a way to help us with intergenerational (or debt) funding and help us to pay it back.

‘‘We will pay our share.’’

Transport Minister Simeon Brown and NZTA have been contacted for comment.

By David Hill, Local Democracy Reporter

■ LDR is local body journalism co-funded by RNZ and NZ On Air.