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​Funding the Future: Where Council Gets Its Money

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South Waikato District Council provides services to more than 25,000 people. These include essential services like water supply, waste management, and keeping roads safe and in good condition. The Council also looks after community services such as public toilets, libraries, community halls, and parks and reserves.

Maintaining these services and the assets, both for our current community and for future generations, requires substantial and ongoing funding. But where does the money come from?

Council expects to generate $64 million in total revenue for the 2025-2026 financial year. The lion’s share - $47.6 million - comes from rates paid by property owners. This is followed by $8.55 million in subsidies and grants. Additional revenue streams include fees and charges amounting to $5.72 million, development contributions of $705,000, and miscellaneous income of $1.38 million (refer to the Annual Plan 2025–26).

This funding will enable Council to continue to deliver on its Long Term Plan, our roadmap towards promoting social, economic, environmental and cultural wellbeing in our communities both now and in the future.

Here's a breakdown of where the money comes from, and what it supports.

Rates (74%)

The largest portion of the funding comes from rates. These funds are the backbone of Council operations, supporting everyday services such as:

  • Water supply and wastewater
  • Roading and footpaths
  • Parks and recreational facilities
  • Libraries and community centres
  • Rubbish and recycling services

Subsidies and grants (13%)

One of Council’s primary activities is owning and maintaining the roading and footpath network (excluding state highways). Ensuring our current infrastructure is appropriately maintained and renewed as required is a key focus, alongside encouraging compliance with necessary standards. Therefore, a significant share of our funding comes from subsidies provided by NZ Transport Agency (Waka Kotahi) which helps fund the District’s transport network. This external funding reduces the burden on local ratepayers while enabling critical maintenance and upgrades.

Fees & Charges (9%)

Council also collects revenue through user charges and regulatory fees, which make up about 9% of total income. These include:

  • Dog registration and animal control fees
  • Building and resource consent fees
  • Event and venue hire fees

Development and Financial Contributions (1%)

As the District grows, development contributions play a key role in funding infrastructure needed to support new housing and commercial developments. These contributions help pay for:

  • New roads and footpaths
  • Water and wastewater connections
  • Stormwater systems
  • Public reserves and amenities

Other Income (2%)

The remaining 2% of Council’s income comes from a mix of Grants, Investment income and other income from miscellaneous sources.

Altogether, the above funding streams will empower Council to deliver on its vision of “A thriving community and robust economy that outpaces the rest of NZ” - ensuring South Waikato continues to grow, connect and lead.

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