Tasman District Council has agreed to consult on a proposed rates revenue increase of 9.9% and net debt of $320m for the 2026/27 year. This rates number is made up of 2.3% weather event recovery, 5.3% Three Waters and 2.3% from the rest of business (which is within the Government’s proposed Rates Cap model of 4%.)

This is higher than the anticipated Long Term Plan rates revenue increase of 5.2% (excluding growth) and net debt of $307m for 2026/2027.

A revised Annual Plan proposal recommended by staff includes reductions in capital budget expenditure of $7.6m. with further capital and operating expenditure reductions of $0.5M.

The Council will consult on a proposed reduction to the planned increase in funding depreciation from roading by 3.0%, i.e. from 24.0% to 21.0% for 2026/2027.

The coming year represents a time of significant change for local government. Councils everywhere are navigating new expectations, major sector reforms, and increasing financial pressures.

The considerable financial challenges arise from increasing interest rates, depreciation requirements (due to updated asset valuations), and insurance costs. Couple this with the impacts of the 2025 weather events, Government-mandated compliance changes to the supply of water and resource management, and increased costs to maintain the Three Waters and roading networks and our parks and reserves.

Elected members and staff have been working since November last year to minimise the cost to ratepayers. A range of changes and efficiencies identified enabled limiting the rate revenue increase to 9.9% while maintaining our current service levels.

In the recent and ongoing rates cap discussion the need for Councils to limit their rate revenue increases, excluding water costs, to 4% or less. It is pleasing to see despite the financial pressures we face, we have managed an outcome close to that ideal with water creating 5.3% of the proposed increase.

We acknowledge as we address these economic pressures, households and businesses within our District are equally impacted.

We are dedicated to finding an approach that balances affordability with the need to keep delivering the important services you expect and value. As we’ve heard from our residents already, doing the basics well is a good benchmark.

Staff will bring an Annual Plan consultation document for consideration at the Council meeting on 02 April 2026.

Once approved, consultation on the proposal will open to the public.

© Scoop Media