The Annual Plan 2025/26
The Annual Plan 2025/26 sets out Council’s plan and budget for the year 1 July 2025 – 30 June 2026.
This Annual Plan correlates to Year 2 of the 2024-34 Long Term Plan and reflects any changes to the work programme for the year.
An Introduction from your Mayor
In line with most other local government and the wider economic mood, we’re facing some significant challenges, but there’s also a lot of opportunities on the horizon and some exciting projects beginning to come to fruition.
Finding the balance remains the key theme throughout this annual plan period. We will continue investing in those essential services such as roading, waste and water, while also taking care of the facilities that make this a great district in which to live.
We need to do all of this while ensuring community affordability is not compromised.
During our consultation on this Annual Plan, those who responded were reasonably united in their view that they wanted us to ‘cut our cloth’ during challenging economic times. However, there wasn’t significant support in reducing service levels in areas such as roading, facilities or community funding.
We felt that there was not enough public support to continue with the 12% rates increase that was planned for the second year of the Long Term Plan 2024-34. Through a mixture of operational savings, less draw down of debt and a more favourable interest environment we have been able to deliver a 9% increase.
Over the past year we have introduced a reduced costs Theatre Royal and Museum project, just as the community wanted, and our Aorangi Stadium Project will deliver a fantastic facility for local sports codes and be a magnet to bring sporting events to our region.
These projects, as well as resilience upgrades for Timaru’s water supply and a variety of other services you use every day, add up to around $80.4 million in capital expenditure over the next year.
This spend, plus funding our operating costs and providing a similar level of service for the community, will result in a forecasted operating deficit of $6.8 million. While short term deficits can be normal, council officers will be focusing on balancing the books over the next few years to close this gap and put us on a path of financial sensibilities.
In the background to all this some significant changes for councils, that will leave us as very different organisations, have been looming. Early in the new financial year we’ll be making proposals about how we deliver water services to our, and possibly neighbouring communities, and looking at major reforms in planning,
building and nearly everything else we do. While the reaction from some may be to hope these changes don’t affect them, much of local government is still running similarly to how it did during the last reforms in the late 80s, so we’re preparing to take an active part in any changes that are coming and advocate for the best outcome for our district.
We’ve had some challenging years, and we face some challenges now, but there’s a lot to be excited about in the coming years.
Nigel Bowen
Mayor
Koromatua
You can read more about what is planned in the Annual Plan 2025/26 in our information below
Supporting Information
- Council Report Adoption of the 2025-26 Annual Plan 30 June 2025 (pdf, 886.0 KB updated 30-Jul-2025)
- Council Report Resolution to Set Rates 2025-26 30 June 2025 (pdf, 606.1 KB updated 30-Jul-2025)
- Fees and Charges 2025-26
Background and Frequently Asked Questions
What’s the Annual Plan?
All local authorities are required to prepare an Annual Plan under Section 95 of the Local Government Act 2002.
Annual plans are produced for the years between Long-Term Plans (LTP), with the LTP setting the longer term strategic direction.
The annual plan is a one-year snapshot of Council’s intended work programme for the year. It outlines what the Council is planning to do, and any changes to the relevant year of the Long Term Plan, including financial information such as costs and funding and rates.
Annual plans are based on the relevant year of the Long Term Plan, and give us the opportunity to refresh information and budgets for the coming year, and include the setting of rates. They also highlight any changes to the Annual Plan for that particular year.
All local authorities are required to prepare an Annual Plan under Section 95 of the Local Government Act 2002.
Annual plans are produced for the years between Long-Term Plans (LTP), with the LTP setting the longer term strategic direction.
The annual plan is a one-year snapshot of Council’s intended work programme for the year. It outlines what the Council is planning to do, and any changes to the relevant year of the Long Term Plan, including financial information such as costs and funding and rates.
Annual plans are based on the relevant year of the Long Term Plan, and give us the opportunity to refresh information and budgets for the coming year, and include the setting of rates. They also highlight any changes to the Annual Plan for that particular year.
How does the council planning process work?
Every three years – part way through each election term – the council is required to develop and adopt a long-term plan. The first year of each LTP represents the Annual Plan for that year. In the years between long-term plans, annual plans are produced. These outline any changes to the LTP work programme and budget.
At the end of each year, an annual report and summary annual report is produced. These let the community know about what’s been achieved and how we have performed, as well as anything that hasn’t quite gone to plan or anything unexpected that's come up.
Every three years – part way through each election term – the council is required to develop and adopt a long-term plan. The first year of each LTP represents the Annual Plan for that year. In the years between long-term plans, annual plans are produced. These outline any changes to the LTP work programme and budget.
At the end of each year, an annual report and summary annual report is produced. These let the community know about what’s been achieved and how we have performed, as well as anything that hasn’t quite gone to plan or anything unexpected that's come up.
Why can councils choose not to consult on annual plans?
A series of amendments were made to the Local Government Act 2002 (the Act) in 2014 to encourage new ways of consulting and communicating with the community.
One of these amendments removed the requirement for councils to formally consult “if there are no significant or material differences to the content of the long-term plan”. This now makes formal consultation on proposed annual plans exceptions-based – that is, if there are no significant changes Council is not legally required to consult.
An annual plan that includes an overview of any minor changes in costs (along with all other information required under Part 2 of Schedule 10 of the Act) must still be prepared and adopted by council resolution before 30 June.
A series of amendments were made to the Local Government Act 2002 (the Act) in 2014 to encourage new ways of consulting and communicating with the community.
One of these amendments removed the requirement for councils to formally consult “if there are no significant or material differences to the content of the long-term plan”. This now makes formal consultation on proposed annual plans exceptions-based – that is, if there are no significant changes Council is not legally required to consult.
An annual plan that includes an overview of any minor changes in costs (along with all other information required under Part 2 of Schedule 10 of the Act) must still be prepared and adopted by council resolution before 30 June.
How do we decide what is significant?
Section 5 of the Local Government Act 2002 (the Act) describes “significance” as the degree of importance of any issue, proposal, decision, or matter, as assessed by the local authority, in terms of its likely impact on, and likely consequences for:
- the district or region
- anyone likely to be particularly affected or interested
- the capacity of the local authority to perform its role, and the financial and other costs of doing so.
Section 5 also describes “significant” as any issue, proposal, decision, or other matter having a “high degree of significance, that is:
- significant or material variations/departures from the financial statements or funding impact statement in the long-term plan
- significant new spending proposals, and the associated costs, or
- substantial delays to, or cancellation of, significant projects, and associated implications.
The Council is required to have a Significance and Engagement policy under Section 76AA of the Local Government Act 2002. The Policy is reviewed every three years as part of long-term plans.
Section 5 of the Local Government Act 2002 (the Act) describes “significance” as the degree of importance of any issue, proposal, decision, or matter, as assessed by the local authority, in terms of its likely impact on, and likely consequences for:
- the district or region
- anyone likely to be particularly affected or interested
- the capacity of the local authority to perform its role, and the financial and other costs of doing so.
Section 5 also describes “significant” as any issue, proposal, decision, or other matter having a “high degree of significance, that is:
- significant or material variations/departures from the financial statements or funding impact statement in the long-term plan
- significant new spending proposals, and the associated costs, or
- substantial delays to, or cancellation of, significant projects, and associated implications.
The Council is required to have a Significance and Engagement policy under Section 76AA of the Local Government Act 2002. The Policy is reviewed every three years as part of long-term plans.
What’s the difference between formal consultation and engagement?
Consultation involves receiving public feedback on proposals, and is one form of engagement. The Council regularly consults with the community through processes such as the long-term plan, which determine Council’s strategic direction, as well as how it sets budgets and prioritises projects.
The Council will consult with the community about significant decisions following the principles set out in Section 82 of the Act. The Council can also decide to consult at any time on a decision, where it considers that appropriate. For most Council decisions, there is no express requirement to consult the public, but we will consider people’s views and preferences.
Engagement is a broader and ongoing process of sharing information with the community and seeking its feedback, with the purpose of involving the community in the process of decision making. This may or may not include a more formal consultation process.
Consultation involves receiving public feedback on proposals, and is one form of engagement. The Council regularly consults with the community through processes such as the long-term plan, which determine Council’s strategic direction, as well as how it sets budgets and prioritises projects.
The Council will consult with the community about significant decisions following the principles set out in Section 82 of the Act. The Council can also decide to consult at any time on a decision, where it considers that appropriate. For most Council decisions, there is no express requirement to consult the public, but we will consider people’s views and preferences.
Engagement is a broader and ongoing process of sharing information with the community and seeking its feedback, with the purpose of involving the community in the process of decision making. This may or may not include a more formal consultation process.
What if I want to let the Council know my views, and it’s not part of a formal consultation?
We are happy to receive feedback at any time throughout the year, not just at annual plan time.
Please get in touch if you want to share your ideas, have some positive feedback about our staff, or have something you are not so happy about.
If it’s a particular issue around something you think needs fixing, contact our Customer Services team on (03) 687 7200 or enquiry@timdc.govt.nz or via our Website - Contact Us
You can also use the App Snap-Send-Solve, available via the Apple App store or Android’s Google Play.
We are happy to receive feedback at any time throughout the year, not just at annual plan time.
Please get in touch if you want to share your ideas, have some positive feedback about our staff, or have something you are not so happy about.
If it’s a particular issue around something you think needs fixing, contact our Customer Services team on (03) 687 7200 or enquiry@timdc.govt.nz or via our Website - Contact Us
You can also use the App Snap-Send-Solve, available via the Apple App store or Android’s Google Play.
What’s the Long Term Plan (LTP)?
The 2021-31 Long Term Plan was adopted in July last year and forms the basis for the 2022/23 Annual Plan. You can read more about the Long Term Plan 2021/31 on www.thrivingtogether.co.nz
The 2021-31 Long Term Plan was adopted in July last year and forms the basis for the 2022/23 Annual Plan. You can read more about the Long Term Plan 2021/31 on www.thrivingtogether.co.nz
Last updated: 31 Jul 2025