Nelson City Council to progress Annual Plan 2025/26

Nelson City Council has voted to make no significant changes in its Annual Plan 2025/26 from what it consulted on in the Long Term Plan (LTP) 2024-34 for Year Two.

The Plan strikes a balance between the challenging economic environment and the delivery of essential services. The proposed Year Two rates increase of 6.5% has not increased, reflecting Council’s awareness of the ongoing financial pressures faced by the community and the need to keep tight control on Council budgets. 

Under the Local Government Act, councils are not required to consult on an annual plan if it does not include significant or material differences from the content of the LTP for that year. As such, Council will not be consulting on the Annual Plan 2025/26. The decision not to consult will allow savings on consultation costs, estimated to be about $140,000.  

Nelson Mayor Nick Smith said that some changes were required from the LTP as a result of some Government funding being increased, as for flood protection, and others being reduced in areas such as transport. 

“We are following through as much as possible on what was a good and robust LTP process and sticking to the plan we struck. A 6.5% rates increase is still high, given that it is significantly more than inflation, but it reflects the years where inflation was over 7% and some of those increased costs are still flowing through. Increased costs we are having to absorb include power hikes of 20% and the new Government water levy of $217,000 per year. 

“Over the next six months, as we finalise the details of the Annual Plan 2025/26, we’ll remain focused on carefully managing spending. Our households and businesses have faced one of the toughest years in decades, and Council recognises the importance of being prudent in our choices to reflect these pressures.”   

Key changes in the Annual Plan are likely to include refinements to project scopes and adjustments to the capital works schedule. Notable changes include deferring the $2.6 million Civic House roof and ceiling tile upgrades to 2026/27, postponing the $1.3 million joint cemetery capacity purchase to 2027/28, and reallocating $3.2 million from Halifax and Bridge Street water supply works to 2026/27.  

Council has prioritised funding for flood resilience projects, including the Haven/St Vincent culvert renewal and upgrades, and other infrastructure improvements in areas affected by the August 2022 severe weather event.  

The final Annual Plan, including rates for 2025/26, will be brought to a Council meeting for adoption by the end of June 2025.