Councillors reduce proposed rates increase again
Environment Southland councillors today signalled a further reduction to the proposed rates increase for 2026-27, lowering it from 3.9% to 3.25%.
The Long-term Plan 2024-34 had forecasted a rates increase of 12.6% for 2026-27, which councillors had already reduced to 3.9% through careful prioritisation of work programmes, timing decisions, efficiency improvements, the use of reserves, and prudent financial management. Following a review by the Finance and Performance Committee, further refinements were requested, resulting in a rates increase of 3.25% which was presented in the draft Annual Plan endorsed by the Council today. The adoption of the Annual Plan is scheduled for 24 June 2026.
Affordability has been front of mind for councillors throughout the Annual Plan process. Environment Southland Chair Jeremy McPhail said councillors wanted to reduce pressure on households and businesses, while continuing to invest in the region through its priority work programmes.
“We know many Southlanders are continuing to face cost pressures, and councillors have been very conscious of that as we have worked through this Annual Plan. Through careful planning, some efficiencies and the use of reserves, we have been able to reduce the average rates increase a bit further, to 3.25%, while still maintaining our levels of service and progressing the work that matters for our communities,” he said.
Chair McPhail said as a council, we’re focused on ensuring this Annual Plan strikes a balance between affordability and ensuring we remain well-placed to deliver important regional functions, including climate and flood resilience, catchment management, biosecurity and biodiversity work.
“We want the Annual Plan to reflect a disciplined approach to our finances and a strong commitment to value for money for our community. We’ve looked carefully at what needs to happen now, what can be phased, and how we can make the best use of the tools available to us to support Southland.”
The Annual Plan 2026-27 outlines the work Environment Southland will undertake in the coming year through its work programmes and associated budgets.
The Annual Plan will be available on Environment Southland’s website after it is adopted on 24 June 2026.
