Focusing on affordability in setting 2025-26 rates

As part of the Annual Plan process to consider work programme and budgets, Councillors set the rates for the 2025-2026 financial year at today’s Environment Southland Council meeting.

The Council will continue its focus on increasing the resilience of the region to flood risk but reduced the average rate increase from 12.9% to 8.8% for the 2025-26 year.

This will mean an increase of $32 for the year or 62 cents per week for a property with the median residential value in Southland ($450,000). The Council is in year 2 of a transition changing how it rates for land and river management, and this could add to rates ($17 for average $450,000 property, dependent on location).

Environment Southland Chairman Nicol Horrell said the proposed reduction to the overall rate rise has been achieved through around $1m of operational cost savings, including changes to the timing of regional planning processes due to national policy shifts, consent monitoring efficiencies, and other efficiency gains across the organisation.

There are also reduced interest rates and depreciation costs, along with $350,000 of projected unspent funding from this year offsetting costs.

While there were no significant changes to the 2025-26 work programme from the Long-term Plan 2024-34 (LTP), the Council was acutely aware of ongoing cost of living concerns in the community, he said.

“Affordability is a key concern, and we have a strong focus on finding ways to maximise value for the community and minimise rates increases.”

The previously forecast 12.9% average rates increase in the LTP had been driven by a range of factors, including a reduction in the use of reserves, planned flood protection work, the end of government funding for biodiversity work, and inflation, interest and asset funding (debt and depreciation).

Since the adoption of the LTP in July 2024, several factors have changed, including a $620,000 reduction of the forecast marine fee income, confirmation of the level of government co-funding for climate resilience projects, and increasing insurance costs, Chairman Horrell said.

The Council would not be consulting on the 2025-26 Annual Plan, but would be seeking community feedback on the proposed average rates increase of 8.8%.

Feedback opens on Monday (31 March) and can be provided via https://www.haveyoursay.es.govt.nz or by talking with your regional Councillor. Feedback forms will also be available at libraries and service centres around the region.

The Long-term Plan is a 10-year plan, which is reviewed every three years and outlines priorities, service levels and budgets. The 2025-2026 Annual Plan will be available on the Environment Southland website in due course.

ENDS

For more information, please contact the communications team on 0800 76 88 45 or email communications@es.govt.nz