Welcome to Tasman District Council’s draft Annual Plan and budget for 2026/2027, including proposed fees and charges.

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 Tasman District also continues to recover from the June/July 2025 weather events, which placed added strain on our communities, infrastructure, and on the Council’s work programmes and budgets.

What is an Annual Plan and why does it matter?

The Annual Plan is our programme and budget for the year. It sets out the activities, services, and capital projects we intend to deliver and how we will fund them, including the rates required. It also highlights any significant changes from what we agreed in Tasman's 10-Year Plan 2024 – 2034.

The Council will make final decisions on the Annual Plan 2026/2027 in June 2026 and the final plan will be available at tasman.govt.nz in July 2026.

Under the Local Government Act, councils must consult on an Annual Plan when proposed changes are significant or materially different from what is in the 10-Year Plan. Because the proposed changes for 2026/2027 are substantial, we want to be transparent about them and give you the opportunity to provide feedback on the things that affect you.

The purpose of this information is to:

• Explain how we worked out the rates revenue increase and how we plan to pay for things.
• Share the current challenges the Council is facing.
• Ask for your feedback on the changes that could affect you.

Part 1: Our operating environment

The Annual Plan 2026/2027 focuses on finding the right balance – continuing progress towards our long-term vision for future generations, while keeping rates fair and as affordable as possible.

We are preparing this budget in a challenging environment. Key pressures include the Districts’ ongoing recovery from the June/July 2025 weather events, new national expectations and sector reforms (including potential rates capping requirements), and increasing financial constraints across the organisation.

Part 2: Have your say

This proposal sets out how we have responded to the context in which we are operating and the decisions we have made to balance affordability with delivering the core important services you expect and value.

The proposed changes are set out in our consultation document.

We welcome your feedback by 5.00pm on Sunday 3 May, particularly on:

• What is your preferred option for the 2025 Weather Event Recovery Rate?
• Do you have any feedback on any of the proposed budget movements outlined 1- 4 below? Each includes a brief description of what it is and the associated budget increase or decrease.

Click here to have your say.

Our proposed changes

Severe weather in June and July 2025 caused significant damage across parts of the District. The Council has been running an extensive response and recovery programme, which is still underway. The current estimated net recovery cost is approximately $14.6m, although this figure is not yet final.

Non-rates funding sources for the 2025 weather events recovery have now been exhausted and the Council must recover its share of the remaining costs through rates.

We have shortlisted four options, outlined below. These are called a targeted rate, as they are for a specific purpose. The rate is proposed to apply district-wide, so it will be paid by all ratepayers

The rating impacts of Options 1 and 2 are demonstrated on the representative properties from page 19 of the Recovery Rate Options Analysis, which can be accessed below.

Extending the period over which we repay the debt for recovery from the 2025 weather events would reduce the level of the rate each year, but it would also increase the number of years that the rate is charged for and increase the total costs to both the Council and the community higher than a shorter period. A longer repayment period would also increase the risk that another natural hazard events could occur before the debt for the 2025 weather events is fully paid off, requiring additional borrowing and further recovery costs.

The following material about the proposed 2025 Weather Events Recovery has been prepared to support this consultation:

• Consideration of options and Local Government Act 2002 provisions (including rating impact modelling information).

• The Council’s Revenue and Financing Policy, showing changes to introduce the proposed new rate.
• Read more in the consultation document.

Operational expenditure for the draft Annual Plan is proposed to increase by $10.2m to $102.4m, compared with Year 3 of Tasman’s 10 Year Plan 2024 – 2034.

Indicative key changes (increases and decreases) are outlined below or click here to view them in a table. Minor changes are not listed.

Fees and recoveries

Higher revenue is expected than forecast due to increased activity following the 2025 weather events – particularly in Rivers and Roading activities – and greater gravel extraction volumes. Building and resource consent revenue is also tracking above earlier assumptions.

Maintenance

Maintenance budgets have increased by $7.0m. Of this, $4.1m relates to Three Waters, driven by new central government regulatory requirements. Some maintenance budgets that were reduced in Tasman’s 10-Year Plan 2024 – 2034 now need to be reinstated due to actual demand, particularly for reactive maintenance.

Additional increases relate to Roading (slip response and tree work), Kingsland Forest (following the end of DIA funding), and management of Council’s reserves and ageing facilities.

General operating costs

New central government levies – Taumata Arowai ($250,000) and the Commerce Commission ($75,000) – were not known when Tasman’s 10-Year Plan 2024 – 2034 was prepared.

The cost to Council of using the Regional Sewerage Business Unit scheme has increased by $700,000 due to ongoing growth in areas connected to the system, including parts of Richmond, and higher wastewater flows during wet weather events.

The planned $3m museum grant for a new facility has been rephased from 2025/2026 to 2026/2027, as the work was delayed last year.

Professional fees

Professional fees have increased by $1.3m, with $1.1m relating to Three Waters compliance activity. An additional $500,000 is sought to support the development of strategic plans required under new legislation. Further funding is included to respond to resource management system changes, including preparation for a Regional Spatial Plan.

Operations

Council-wide insurance has risen above the assumed level in Tasman’s 10-Year Plan 2024 – 2034. Although some recent reductions in premiums have been reflected in the draft Annual Plan, overall costs remain higher than previously planned. This has also been felt in both the commercial and private sector.

Employee benefits

Inflation and higher-than-expected premiums for staff health insurance, along with associated Fringe Benefit Tax, have contributed to increased employee benefit costs.

Loan repayments (unfunded depreciation)

There has been an increase of $3.2m. Council continues to move towards fully funding depreciation; however, asset revaluation impacts were underestimated in the 10-Year Plan. Higher valuations, particularly for roading and three waters assets, have materially increased depreciation funding requirements and associated rates impacts. We are looking to be more conservative in Tasman’s 10-Year Plan 2027 – 2037.

Sale of assets

The draft Annual Plan includes $2.5m of asset sales, consistent with decisions made during the Annual Plan 2025/2026 process. This is $1m higher than planned for in Tasman’s 10-Year Plan 2024 – 2034.

Net interest costs

Net interest costs have increased by $500,000. Higher borrowing has increased the level of liquid assets required under our Treasury policy, generating more interest revenue than assumed in Tasman’s 10 Year Plan 2024 – 2034. The interest we receive offsets the below interest costs.

Overall interest rates have risen since adopting Tasman’s 10-Year Plan 2024 – 2034, increasing interest expenses above earlier expectations.

The three community facilities projects

Progressing three community facilities projects was planned and budgeted for in Year 3 of Tasman’s 10-Year Plan 2024 – 2034, as well as the current financial year (2025/2026). The Council has considered the next steps for each project, the rating impacts and its preferences.

We are seeking feedback on progressing or pausing these projects.

Tapawera Community Hub

Should we continue the project as planned, OR pause and defer to Tasman’s 10-Year Plan 2027 – 2037 discussions?

The facility needs of the Tapawera community are not yet clear. As a consequence, the Council’s proposal is to pause this project and defer it to Tasman’s 10 Year Plan 2027 – 2037 discussions to further explore how best to support the Tapawera community’s ambitions for a new Community Hub.

2026/2027 rating impact: 0.02% or $34k

Potential ongoing annual operating costs: $156k*

Waimea South Facilities

The proposed Wakefield Hub

Should we continue the project as planned, OR pause and defer to Tasman’s 10-Year Plan 2027 – 2037, with further investigation to support discussions?

The Brightwater facilities upgrades

Should we continue the project as planned, OR undertake some weatherproofing work this financial year then pause and defer to Tasman’s 10-Year Plan 2027 – 2037 discussions?

The Council's proposal is to continue these projects.

2026/2027 rating impact: 0.03% or $45k.

Potential annual operating costs for the Wakefield Hub: $408k*

Motueka Pool

Should we continue the project as planned, progressing through the design stage, OR pause and defer to Tasman’s 10 Year Plan 2027 – 2037 discussions?

The Council’s proposal is to continue this project.

2026/2027 rating impact: 0.16% or $204k

Potential ongoing operational costs: $862k*

*The operating costs provided are indicative estimates and subject to change following future council decisions on individual projects. They are included to show the potential ongoing annual costs of each facility.

Capital expenditure in the draft Annual Plan is proposed to increase by $7m to $80.6m, compared with Year 3 of Tasman’s 10 Year Plan 2024 – 2034, reflecting project rephasing and updated priorities.

Several projects have been deferred beyond 2026/2027 and the upcoming 10-Year Plan 2027 – 2037 process will further manage timing and prioritisation.

Indicative key changes to the capital programme (increases and decreases) are outlined below or click here to view them in a table. Joint Venture capital expenditure is not included and minor changes are not listed.

Water supply

• Reticulation upgrades, growth projects and compliance work ↑(+$14.4m)
• Lower Queen Street upgrade deferred, other growth projects rescheduled ↓(–$8.8m)

Wastewater

• Growth projects, sludge disposal upgrades and renewals ↓(–$5.4m)
• Motueka Wastewater Treatment Plant membrane replacement ↑(+$1m)

Waste management

• Upgrades to ensure the facilities are fit for purpose ↑(+$2.3m)

Community facilities

• Motueka Community Pool ↑(+$2.1m)
• Saxton Green play space ↑(+$1.2m)

Rivers

• Rebuilding riverbanks washed out from the 2025 weather events and additional flood protection for Motueka ↑(+$7.2m)

Read the full capital programme proposed for 2026/2027

Please note there is a correction to the capital programme total figure of $80.6 million shown on page 16 of the Annual Plan 2026/2027 Consultation Document (CD) and therefore a difference to the detailed information linked above. This difference comes down to two issues:

• There was an addition error in the CD table, which understated the total figure by $17.4 million. When corrected, the CD figure should read $90.3m excluding the capital expenditure for our joint ventures (JVs), or $98 million including the JVs.
• The detailed information linked above does not include $11.2 million of capital lag. We adjust the figure down for the lag because projects can run into issues with, for example, resource, consents, or land purchase, and so the full programme budget is usually never spent.

We have been progressively moving toward fully funding depreciation (i.e. the cost of the assets wearing out over time)and this impacts our ability to achieve a balanced budget, and plan to have completed this by 2030.

Fully funding depreciation means that we do not need to borrow to replace existing assets when they reach the end of their life.

We are transitioning towards funding our roading/transport assets and had planned to reach 24% funding in 2026/2027. To help reduce the rates increase, we are proposing to slow this transition and instead reach 21% by the end of 2026/2027. This will reduce the rates increase by 0.5% (approximately $650,000), but it would also increase net debt by a similar amount from 2026/2027.

Alternatively, we could continue to move to fully funding the roading/transport depreciation at the planned increase to 24% in 2026/2027 (which would increase rates by a further 0.5% and reduce debt by $650,000), or to move more quickly or more slowly.

Council sets fees and charges to recover some of the costs of delivering functions, services, and activities where there are private benefits, in accordance with our Revenue and Financing Policy.

A standard increase of approximately 7% has been applied where appropriate to reflect inflation and service cost pressures. Some fees differ from the standard increase due to legislative settings, affordability considerations, or the need to achieve appropriate cost recovery.

Overall, we forecast raising $35m from fees and charges in 2026/2027. This revenue helps reduce the amount we need to collect through rates.

The Council’s proposed Schedule of Fees and Charges for 2026/2027, along with the Statement of Proposal, sets out all the proposed changes.

Specific proposed changes to charges of note

• Staff charge-out rates are proposed to increase by 3.5% from $226.00 to $234.00, reflecting updated service delivery costs.
• The Project Information Memorandum (PIM) fee is proposed to change from $544 to $1,000, an increase of 87% to fully recover costs and reduce the subsidy from rates.
• Property information files are proposed to be charged at $60 per file, with a 50% reduction for homeowners. A bulk user discount of 60 files for $3000 will also be available.
• Building assurance: Section 72 and section 75 decision and removal fees 19% increases to these fees are proposed to reflect higher costs associated with delivering this service, including a 35% increase in Land Information New Zealand lodgement fees.
• The six stock impounding fees are proposed to increase above the standard 7%. The increased fees align with other councils and account for the actual cost of impounding these animals.

Get more details

• Read the summary of key changes in the Statement of Proposal, which includes the full draft Schedule of Fees and Charges.

It is important that you have your say on these proposals so please take the opportunity to share your views with us.

Give your feedback here.