Council Receives Draft Budget For Annual Plan 2025-26
Marlborough District Councillors received the draft budget for the Annual Plan 2025-26 at a meeting of full Council today.
For the coming financial year beginning 1 July 2025 a draft average rates increase for Marlborough ratepayers was presented of 9.42 per cent. With a small number of essential levels of services increases supported including payroll and human resources systems (0.01%), communications (0.06%) and Marlborough Events Centre air conditioning system upgrade (0.03%), adding a further 0.10%, this brought the proposed total draft average rates increase to 9.52 per cent. This is less than the 10.62 per cent originally signalled in Council's Long Term Plan.
Further work will now be done to refine and confirm the draft budget prior to its adoption by full Council on 26 June.
Mayor Nadine Taylor thanked the public for submitting their ideas through the Annual Plan feedback process earlier this year.
'We gave a strong signal when adopting last year's Long Term Plan (LTP) budget that times are tough right now for everyone including Council and there is very little spare funding around. Council's bottom line has been under significant pressure in recent years, particularly since the two severe rain events that hit Marlborough in 2021 and 2022.'
'The main reasons for this year's increase are the impacts of depreciation at 3.46%, inflationary adjustments at 2.5%, and a further insurance cost increase of 0.75%; all of which add up to 6.71%. These factors are largely outside of Council's control but they have to be accounted for in our budgets,' Mayor Taylor said. 'We are also still paying for the Covid Rates Relief applied during the pandemic to help our ratepayers, the cost of which we decided last year to spread over three years with an impact of 1.5% per year.'
Depreciation is the gradual loss of value of an asset over time due to wear and tear. In financial accounting, depreciation spreads the replacement cost of an asset over its useful life.
Mayor Taylor thanked Chief Financial Officer Geoff Blake for his diligent work in reducing the draft average rates increase from the 10.62 per cent forecast for this year in the LTP and noted the concerted effort across Council to contain costs as much as possible. Council's forecast net debt has also been reduced to $147M, a reduction of $43M on that forecast in the LTP.
Mayor Taylor said almost all the money budgeted in the draft Annual Plan was earmarked for core infrastructure, with $117M allocated in capital expenditure for the coming year. While the bulk of it covered roading, including $29M relating to the recovery of the storm damaged roads in the Marlborough Sounds, $31M is allocated to to three waters infrastructure and a further $8M would go toward community facilites and flood protection.
'Our core projects include work on water supplies around the district to upgrade pipelines, pump stations and water treatment to ensure we meet national standards,' Mayor Taylor said.
'Roading and footpaths are the biggest item of Council capital expenditure with $64M allocated this year for renewals and improvements. Included in this is the $29M to repair and rebuild the damaged Sounds roading network, work on which continues at pace.'
Last year $8.7M was allocated by Council for the Spring Creek stopbank repairs project with funding support provided by the Government as well. This previously approved $8.7M is also reflected in the draft Annual Plan.
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