Annual Plan

He aha tētahi Mahere ā-Tau?

What’s an Annual Plan?

Every three years, councils produce a Long Term Plan – a requirement under the Local Government Act. A Long Term Plan sets out the work we plan to do over the next 10 years and how that work will be funded.

But 10 years is a long time and things can change. That’s why the plan is refreshed every three years to make sure we’re still on the right path and delivering on what the community expects from us.

For the two years between Long Term Plan reviews, councils prepare an Annual Plan. This sets out any changes or adjustments that have been made from the Long Term Plan (both to our annual goals and budgets).

The budgets in the Annual Plan will be used as the basis for setting rates (general and targeted).
After every financial year, we produce an Annual Report to see how we delivered on those goals.

Annual Plan 2025/26 at a glance

With a changing economic climate and shifting direction from Central Government, Councillors recognise that there is a need to address rates affordability while still delivering on the essential services required by our communities.

Year Two (2025/26) of the Long Term Plan 2024 – 2034 budgeted for an increase of 8.2%* to general rates and a 6.3%* increase to targeted rates.

We want to reduce that budgeted rates increase, so we’ve made some changes to make this happen.
A $5M reduction in 2025/26 budgets, which means lower rates increases for that year. Key changes include:

• Freshwater: $370K - Delays in planned work following changes to the Resource Management Act in October 2024.
• Flood Protection and Control: $280K – Received funding from Central Government, resulting in a reduction in interest and loan costs.
• Public transport: $1.57M - Reviewed our public transport programme due to government funding no longer being available through NZ Transport Agency Waka Kotahi. This means stopping some projects that no longer attracted a government subsidy. This includes the Pāpāmoa Park and Ride trial, tertiary commuter services and Route 85 Paeroa extension.
• Rotorua Catchments: $800K - Aligning the budget for the Ohau Wall to the actual timing of the project, with decisions pending.
• Corporate: $627K - Cost savings through measures such as reducing interest costs through better financial management and improving internal process by refining IT systems.

This means:

• The work we have done to date indicates that the general rates increase could be limited to 3%*.
• For the other targeted rates combined, the total increase is likely to be around $483,000 (a 1%* increase).
• $200M proposed operating expenditure (spending required to deliver our day-to-day services).
• $47M proposed capital expenditure (the cost to purchase, improve and / or replace assets).

*Figures indicate nominal rates increase, which includes inflation. These increases are tentative until adoption of the Annual Plan.

Where the money is being spent

Ētahi o ngā āhuatanga e tuku ana mātou i ngā hua hapori i tēnei tau

Some of the ways we’re delivering on community outcomes this year

	He taiao ora A healthy environment Begin development of a regional biodiversity strategy. Ongoing support for catchment groups with expert advice and technical assistance. Review of the Regional Pest Management Plan (RPMP) to remain current with new and emerging pests.
	He hapori mata-hī awatea Future ready communities Delivery of critical flood resilience infrastructure (such as stopbanks and floodwalls), with support from Central Government ($20M co-funding for infrastructure projects in four of our five rivers and drainage schemes) Deferring low-priority work into future years (such as Maketū pump station replacement). New and ongoing partnerships to support communities with adapting to a changing climate.
	Ngā hapori e honoa ana, e whakamanatia ana hoki Connected and enabled communities Re-focusing the work programme to prioritise delivery of reliable, everyday public transport services. Improving the public transport experience with upgrades to the Baybus website. Continuing the OnDemand rideshare service trial for the Tauranga South area into late 2025. Provide more than $1.9M in funding to eligible groups and organisations through our Community Funding programmes.
	He whanaketanga mauri tū roa Sustainable development Continued investment through Quayside Holdings Ltd to support the growth and development of the region that benefits all ratepayers Support for and involvement in regional development initiatives that plan for the future of our region (such as SmartGrowth, Rotorua Future Development Strategy Implementation and Eastern Bay of Plenty Spatial Plan).
	Te Ara Poutama The Pursuit of Excellence Scope out a strategy to implement Te Ara Poutama. Implement the co-governance secretariat and He Ara Taituarā (Māori Initiatives) Fund. This fund supports initiatives that build tangata whenua capability and capacity to participate in Council decision-making processes and operations.

He aha tēnei Mahere ā-Tau e kore rā e uiuia?

Why is this Annual Plan not being consulted on?

Under the Local Government Act 2002, councils are required to consult on the Annual Plan only if there are significant or material differences from the Long Term Plan (according to our Significance and Engagement Policy).

While some cost savings have been identified, the draft Annual Plan remains consistent with the overall financial and strategic direction set out in the Long Term Plan 2024 - 2034, so consultation is not required.
The draft Annual Plan 2025/26 is due to be adopted on June 30, after which time the full document, including the confirmed budgets for the 2025/26 financial year, will be made publicly available.

Kia rite mai i te panonitanga

Get ready for change

To help support your planning, our Rates Calculator will be updated with the financial figures from the draft 2025/26  Annual Plan in May 2025. 

You can use this tool to see what your rates may look like for the year ahead. 

Once the Annual Plan has been adopted at the end of June 2025, this database will be updated with the confirmed figures before invoices go out in September 2025. 

He pātai āku, me kōrero ahau ki a wai?

I have questions, who do I talk to?

You can talk to your local elected member(s).