Tasman District Council has presented its draft financial report for the year ended 30 June 2025, highlighting a challenging year marked by an operational deficit funded through debt, income below budget and expenditure exceeding expectations.

The financial report included revenue and expenditure from joint operations, as well as the share of associates’ surplus or deficit.

Key financial outcomes included a $27.4 million shortfall in the budgeted accounting surplus due to lower non-cash vested assets, reduced contributions and forestry revenues, increased maintenance and depreciation costs, and net borrowing costs finance expenses which exceeded budget by $2.7 million.

As at 31 August 2025, the Council's total debt was $376.4 million, and its Net Debt stood at $269.0 million against a policy limit of $315.5 million (160% of forecast annual revenue for 2025/26).

The low Net Debt is seasonal due to timing with low capital expenditure over winter; and the quarterly rates revenue peak on the first payment instalment in August.

Loan-funded operating expenses were $5.5 million, of which $4.6 million related to the Digital Innovation Programme, with the rest relating to the Tasman Resource Management Plan (TRMP) and Saxton Field.

The balanced budget benchmark - which includes some capital related income but focuses on the funding of operating expenditure - is at 87.9% for the year to date, versus an Annual Plan budget benchmark of 96% and an ideal outcome of 100% or above.

Capital expenditure, excluding joint operations, was $60.3 million or 79% of the full year budget of $76.0 million. After including joint operations, it was $71.9 million or 84.3% of the $85.3 million combined budget.

Our net debt of $271.2 million is lower than the Long-Term Plan (LTP) estimate for 2024/25 of $279.7 million.

The budget for loan funded operating expense for the 2024/25 year was $9.2 million, however $3.17 million relates to a grant for the proposed Regional Museum storage facility, based in Richmond .

Throughout the year, staff have been advising the Council of a shortfall in rates funding of 
$6.4 million for additional interest and maintenance costs. The balanced budget benchmark indicates an adverse variance against budget of $13.1 million. This reflects the shortfall in funding across all areas of the Council not just the main rates funded areas.

In May, the Council authorised the sale of $3.0 million of ETS carbon credits to be used to partly offset this operational deficit. This additional income has been included in the year end accounts.

Rates arrears at the end of the 2024/2025 year is at was $1,203,501, representing 478 accounts. Of this number, 47% are repeat late payers.

Due to the increase in annual rates, we would expected to see the increase in the debt amount from the previous year however the number of ratepayers with rates arrears exceeding $350 are lower than the previous year, down by 9%.

The Annual report which is based on these numbers is now being being audited and as such, figures are subject to change as part of this process. The final audited 2025 Annual Report is scheduled to be adopted by Council at the inaugural meeting for the new triennium on 29 October.

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