Nelson City Council Adopts Annual Plan 2025/26, Confirming 6.5% Rates Increase
Nelson City Council has formally adopted its Annual Plan 2025/26, retaining the forecast average rates increase of 6.5%.
The Annual Plan was adopted by Elected Members in a Council meeting on 5 June 2025, confirming it will proceed without significant changes from what was consulted on as part of Year Two of the Long Term Plan 2024-34.
Nelson Mayor Nick Smith says the Annual Plan strikes a deliberate balance between financial prudence and investment in the city's long-term prosperity.
'This Annual Plan is about maintaining the services and infrastructure that underpin our lifestyle while facing up to the financial squeeze that's affecting households, businesses, and councils alike.
'Cost pressures have been considerable, with electricity costs up 20% and a new government water levy adding $290,000 a year. We've had to make difficult choices to stay on track, but we've delivered a 6.5% rates increase that is among the lowest of New Zealand's 78 councils.'
In the Annual Plan, Council has also agreed to reduce the proportion of commercial rates from 22.6% to 22.3%.
Project timing and budgets have been adjusted to manage inflation and revenue impacts. These include deferring the $2.6 million Civic House roof and ceiling tile upgrades to 2026/27, and postponement of the $1.3 million joint cemetery capacity purchase to 2027/28.
Council has also re-phased funding to respond to storm recovery needs and upgrade the city's infrastructure to enable new development. This includes $778,549 in 2025/26 for the Haven/St Vincent culvert renewal, with additional funding carried forward from previous budgets, as well as $1.65 million for stormwater improvements on York Terrace and $773,000 for resilience works on Cleveland Terrace.
In support of the local economy, Council has approved a $40,000 grant to the Nelson Tasman Chamber of Commerce to continue business mentoring services following the closure of Business Assist.
Mayor Nick says the Plan highlights a shift in Council's priorities from storm recovery and repairs, to plans that advance revitalising the city.
'Over the past two years, our focus has been on recovery from the August 2022 storm — the most severe natural disaster in Nelson in over 50 years. With much of that repair work now well advanced, our attention is turning to city revitalisation. This includes projects like Bridge to Better, the new bus hub at Millers Acre, a new playspace at Rutherford Park, the Marina Promenade, and the launch of a new Arts Development Agency.
'These projects are more than just infrastructure — they are about preparing Nelson for the next generation, attracting investment, strengthening our links with the sea, and enriching community life.'
The final Annual Plan 2025/26 will be published online and made available at Council's Customer Service Centre and local libraries from 1 July 2025.
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