Invercargill City Council has agreed to an average rates increase of 7.11 percent for the next financial year, following deliberations on its Draft Annual Plan 2025/2026 yesterday.
Under the Government’s water reforms, Local Water Done Well, all Councils were required to manage their water services separately. As a result, this meant there were two rates increases to be aware of for 2025/2026: first, the average waters-related rates increase was 14.04 percent, and secondly, the average non-water related rates increase was 3.46 percent.
This meant the overall average combined rates increase, for people who receive three waters services, is set to be 7.11 percent for 2025/2026. Actual rates will differ for ratepayers, depending on the Council services they receive.
Finance and Policy Committee chair, Councillor Lesley Soper, said Council had to balance a challenging economic environment with providing the level of service desired by the community.
“Some strong, consistent messages came through during the public consultation process – the desire to ensure Council was being fiscally prudent, while also maintaining critical services and infrastructure for our community,” she said.
“Throughout this process, it was clear that Council needed to consider expenditure that amplified community impact, and prioritise its investment accordingly.”
Council Group Manager Finance and Assurance Patricia Christie said one of the most significant savings options approved by elected members was to reverse the proposed increase of depreciation funding for sewerage and stormwater, from 90 percent to 80 percent.
“This choice delays the increase until later years, when central government has indicated that full funding of this infrastructure will be required. Councillors considered the risk and chose this option, recognising that the rates increases that may be required in the future will be higher. This risks creating a challenge for successive Councils, in relation to managing rates smoothing and working to attain a balanced budget in the future.”
Council received 495 submissions on its draft plan during the public consultation phase, which ran from 13 March to 13 April. Just under 40 members of the community spoke to their submissions before Council, during two days of public hearings.
The Draft Annual Plan 2025/2026 outlined the projects and day-to-day services on Council’s books for the next financial year, as well as how much it expected these to cost, and how it planned to finance these.
Mayor Nobby Clark said it had been positive to see the community engage with the draft plan during the consultation process.
“I want to thank everybody who made a submission for taking the time to share their feedback with Council. The Annual Plan plays a huge role in guiding what Council sees as its strategic priorities, and these decisions shape the direction of our whole community,” he said.
“Council is appreciative of everybody who made their voice count, and took part in the consultation process.”
Council’s Annual Plan 2025/2026 is set to go up for adoption in June.
Other resolutions made by Council during the Annual Plan 2025/2026 deliberations included:
Wachner Place toilets: Agreed to close the Wachner Place toilets, but added an amendment that it would do so on the proviso that it would investigate and open an additional showering facility within the inner-city. Originally, its preferred option was to close the Wachner Place toilets facility.
Bus fares: Agreed to amend bus fares, with adjustments in response to consultation and following further negotiation with NZ Transport Agency Waka Kotahi. This option required an additional $29,000 of rates funding.
| Ticket type: | Proposed 2025/2026 fare (card payment): | Proposed 2025/2026 fare (cash payment): |
| Children under 13 | Free | Free |
| Youth (13 – 18) | $1.75 | $2 |
| Adult and under-25 | $3.50 | $4 |
| Community Service cardholder | $1.75 | $2 |
| Senior – peak travel | $1.75 | $2 |
| Senior – off peak travel | Free |
Urban Play and adoption of the Play Strategy: Council agreed not to proceed with urban play at this time (no rates impact in 2025/2026, and a saving of 0.60 percent in future years). During consultation, Council’s preferred option was to proceed with a distributed option to invest in play across the city centre, Bluff, South Invercargill, and North Invercargill. However, Council agreed to adopt the Play Strategy.
Community Wellbeing Funding: Agreed to reduce funding by $100,000, to a total of $465,000, in the 2025/2026 year.
Built Heritage Funding: Agreed to pause the annual funding, of $200,000, for 2025/2026.
Great South Funding: Agreed to retain funding at the existing level for 2025/2026. Council had originally proposed a 10 percent ($195,138) reduction in total Great South funding.
Stadium Southland Funding: Agreed to retain annual funding of $700,000 for 2025/2026. Council had proposed a 10 percent reduction in annual funding.
