Palmerston North mayor Grant Smith says Palmerston North is in great shape and the main challenge facing the region is sustainable growth.
"We have a new vision around small-city benefits versus big-city ambition," Smith said.
"It's ensuring that we keep those really good things in the small community but also have some stuff that bigger cities enjoy."
Smith says there are initiatives in place to cope with the demand for affordable housing and says the goal is to make Palmerston North liveable for all.
"We want to keep rates on check. We can't keep continuing to raise rates but that comes with a caveat from central Government," he said. "Local government only receives 12 per cent of the total rates and tax take of New Zealand so it's a very centralised model."