Nelson City Council Adopts Annual Plan 2025/26, Confirming 6.5% Rates Increase
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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Photo / Jason Dorday Louise handled customer service personally, Taylor said, and his daughter set a five-minute response time for any queries: 'I remember urging her to take a break from this on Christmas Day, when we were all together for Christmas. However, she carried on.' Taylor disputed claims made in court last week from Nick Mowbray that he was largely responsible for Rascal's success and business model, and that information shared by his son about the nappy business should be considered confidential. Taylor said from its formation – and before Zuru's involvement in the business – Rascals relied on social media marketing aimed at parents and geotargeting retail stores, a business strategy Nick Mowbray earlier told the court was introduced by Zuru. 'It is not correct for Nick to present it as if it was all his idea, or targeted digital marketing as some secret approach that he invented,' he said. Taylor also said his previous business ventures commonly used free on board (FOB) shipping practices – moving product directly from factory to retailer – which Zuru claims is confidential information that should not be disclosed. 'Nick's explanation of the FOB model in his brief suggests to me that he does not understand it or how we used it.' Taylor also delved into nappy production and his experience visiting China to establish designs and production lines. 'Nick describes nappy specifications as being highly confidential. That's not true. There are relatively few components to a nappy, and there is no patentable IP in the core design. The reality is that Chinese factories can reverse engineer a nappy in minutes,' he said. 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'I remember Grant telling me that it was important to Nick that the shares were held in his name, as he wanted to prove to his brother [Mat] and sister, Anna, that he could run his own business without them,' Taylor said. Taylor told the court he was proud to have been involved in making Rascals a success. 'It was turning over $41 million plus per annum, pre-sale, all on a paid-up capital of $150,000 ... and an asset register of approximately $12,000. No loans, no overdraft. I heard Nick refer to it as a unicorn company, and it was,' he said. 'Contrary to what Nick now says in his brief, we were never losing money.' The trial, and Taylor's testimony, continues. Matt Nippert is an Auckland-based investigations reporter covering white-collar and transnational crimes and the intersection of politics and business. He has won more than a dozen awards for his journalism – including twice being named Reporter of the Year – and joined the Herald in 2014 after having spent the decade prior reporting from business newspapers and national magazines.
