A surprise $2.5 million surplus sparked a stoush among Waikato regional councillors last week resulting in chair Pamela Storey using her casting vote to block a proposal to return the funds to ratepayers.
Waikato Regional Council building. Photo: BCD Group
The debate, which unfolded at a council meeting last week, saw seven councillors — including Waipā-King Country representative Clyde Graf — argue that the surplus should be returned to the public. Graf said the refund, while modest, could help struggling households.
Clyde Graf
“Our group knows that times are tough for many people, and we think that the $2.5 million rates reduction would have helped ratepayers put food on the table.”
Finance committee chair Chris Hughes echoed the sentiment, saying he was disappointed the council would not align with central government guidance to keep rates increases at or below inflation.
Opposing councillors, including Graf’s fellow Waipā-King Country representative Stu Kneebone, warned that returning the surplus now would lead to higher rates in the future. Chair Pamela Storey agreed, casting the deciding vote to retain the surplus in council reserves.
Stu Kneebone
“While returning the surplus might sound appealing in the short term, it would create a gap in our finances for future years,” Storey said.
“My decision was about protecting our region’s long-term stability, rather than offering a small, short-term refund that could cause bigger problems down the track.”
Storey said the average ratepayer would have received approximately $1.09 per $100,000 of capital property value — equating to $10.90 for a $1 million home.
She also noted that using reserves now would leave the council less prepared for emergencies such as cyclones or biosecurity threats.
Waikato Regional Council building. Photo: BCD Group
Graf said the council had no right to keep what was not their money.
Pamela Storey
“If a bank overcharges for fees it is required by law to return the customer’s money – and we should too,” he said.
“Unfortunately, this opportunity has been denied by the chair’s casting vote.”
Ratepayers would not get a refund as such, but the average rates’ increase for 2025-26 would have been four per cent rather than the 5.7 per cent in the Annual Plan.
It is the second time this year Storey has used her casting vote on the same issue arguing the decision should be part of public consultation.
The two submitters who fed back agreed with retaining the surplus.
“It’s worth noting that the regional council has never returned a surplus before, and for good reason. We have worked hard to keep rates increases as low as possible, even with rising costs and changes in government funding.”
Those in favour of returning the surplus were: Warren Maher, Ben Dunbar-Smith, Chris Hughes, Mich’eal Downard, Clyde Graf, Robbie Cookson and Kataraina Hodge.
Those against were: Bruce Clarkson, Angela Strange, Jennifer Nickel, Stu Kneebone, Tipa Mahuta, Noel Smith, and Pamela Storey.
Waikato Regional Council building. Photo: BCD Group
