Council set to consider adoption of Annual Plan 2026/2027

Invercargill City Council is set to adopt its Annual Plan 2026/2027, which would confirm an average rates increase of just over 7 percent for city residents.

Adoption of the Annual Plan was set to be discussed at a Council meeting on Tuesday 23 June. It would include with an average 7.03 percent rates increase for the upcoming financial year, comprised of a 5.52 percent water services rates increase, and a 7.91 percent non-waters rates increase.

Invercargill Mayor Tom Campbell said the average rates increase had risen slightly, as a result of changes to bus, pool, and car parking fees and charges.

The changes to fees were confirmed by Council when it adopted its Fees and Charges Schedule 2026-2027 last month. Prior to this, the proposed rates increase for the upcoming financial year had been forecast at 6.93 percent, he said.

“Our community was integral in providing its feedback on how it wanted to see Council balance taking a user-pays approach versus funding services through our rating base, during public consultation on our proposed Fees and Charges schedule,” he said.

“Challenging economic conditions throughout the globe are placing significant additional pressure on households, and on those of us within local government. The reality of how challenging the current fiscal environment is becomes quite apparent when you look at some of the rates increases throughout the country.

“Council has worked extremely hard to minimise our expenditure, while ensuring we can maintain the levels of service our community wants us to deliver,” Campbell said.

Council Group Manager Finance and Assurance Patricia Christie said the 7.03 percent average rates increase was below the forecast 8.43 percent rates increase in Council’s Long-term Plan (LTP) 2024-2034.

Council was in the third year of its LTP. It had been forecast to return a balanced budget in 2026/27, however changes made during the 2025/2026 Annual Plan period – and the changes to fees and charges confirmed in May – meant this would be deferred until year five of the LTP, Christie said.