Continuing to deliver during challenging times – 2025-26 Annual Report

Building on a strong record of flood management upgrades and service delivery during challenging times is highlighted in the 2025-26 Environment Southland Annual Plan adopted today.

Environment Southland Chair Jeremy McPhail said the Council had responded to severe weather, Government reform and financial pressure, and continued to invest in the future during another challenging 12 months.

“Our focus is on delivering our essential services well, providing value for Southlanders and preparing for the changes ahead,” he said.

Crucial improvements were made to channel capacity on the Mataura River near Gore through Government co-funding for Southland flood resilience projects. The work at the Gore road and rail bridge crossing, which included the removal of 21,850 cubic metres of gravel and sediment, builds on earlier flood infrastructure co-investment across the region, totalling nearly $50 million since 2020.

At the same time, the Government progressed major changes to resource management and local government systems, creating an important opportunity to help shape how services are delivered in Southland in the future.

The October severe weather event caused widespread damage and disruption, while households and businesses continued to face financial pressure, he said.

“It had a devastating and wide-reaching impact across the region. Power and communication outages, alongside damage to property and infrastructure, placed considerable strain on people, businesses, and rural communities.”

Following the initial Emergency Management Southland response, Environment Southland staff supported recovery work and cleared large amounts of debris from waterways across the region, Chair McPhail said.

Council also continued to focus on affordability and responsible financial management – finishing the year close to budget. The headline surplus was $9.4 million, which was $5.5 million above budget, largely because of unbudgeted gains in the Council’s investment portfolio. These investments are held to help meet future asset replacement and disaster recovery costs. Revenue was about $1.1 million higher than planned and operating expenditure was approximately $1.2 million above budget.

In June, Councillors adopted a 3.25% rates increase for 2026-27, significantly below the 12.6% increase signaled in the 2024-34 Long-term Plan. This was achieved through careful prioritisation of work, timing decisions, efficiency improvements, prudent use of reserves and disciplined financial management.

Other highlights for the 2025-26 year included:

• More than 15,000 tonnes (approximately 7,000 – 9,000 cubic metres) of rock protection was placed across multiple catchments to protect vulnerable riverbanks, flood banks and other flood infrastructure.
• 1,800 ha of fairway clearing and spraying, more than 300 km of drainage maintenance and channel management work, as well as erosion protection and river control across the region.
• A successful prosecution for serious and repeated agricultural effluent discharges that contaminated the Tokanui Stream.
• A multi-year native planting project began at Waituna as part of a 100-year reforestation vision.
• A biological control beetle was introduced to help manage the pest plant, Chilean flame creeper.
• Additional funding secured for crucial wilding pine control.
• The launch of SouthMaps, bringing a range of online services from Environment Southland and other councils together in one regional hub.
• About 4,000 Southland students supported to take part in environmental activities through the Enviroschools programme.
• An updated and expanded Murihiku Southland climate impact assessment report released.

In 2025-26, Environment Southland achieved 74% of its activity group performance targets, meeting 25 of the 34 performance measures, an improvement from 65% in 2024-25, 63% in 2023-24, and 62% in 2022-23 financial years. Where targets were not met, performance was often close to the required level or met most of the target criteria.

“Looking ahead, we are prepared for the challenges to come. We will continue to work with our communities, mana whenua, the other councils, and central government to get the best outcomes for Southland. And, as always, we will maintain our focus on delivering our regional functions that are essential for ensuring Southland continues to thrive,” Chair McPhail said.

For more detailed information about the Council’s work programme and financial performance, please see the Annual Report 2025-26 and/or Annual Report Summary 2025-26 - www.es.govt.nz/annual-report