Annual plans and long-term plans
Annual plans set out the services, projects and work programmes to be delivered during the course of a financial year and set the budget for these.
Most of the funds to help council operate daily come from general and targeted rates, which account for about 85% of funding. Other funds come from fees and charges, subsidies and grants and development contributions.
The 2025/26 financial year (the year from 1 July 2025 to 30 June 2026) is Year 2 of the 2024-34 Long-term Plan (LTP), which was adopted last year (2024).
Long-term plans
Every 3 years, Council develops a long-term plan (LTP) in consultation with the community, setting the direction and work plans for a 10-year period. The two years following adoption of an LTP, the council develops annual plans and budgets. Essentially, this is an update to what was agreed through the LTP. Any significant or material changes are consulted on with the community.
What's in the Annual Plan consultation document
This document outlines information about the work programmes, projects and services Council proposes to deliver in the 2025/26 financial year and matters Council wants feedback about. You can provide feedback in various ways, and this will be taken into consideration to help guide elected members in their final decision-making.
Here's a quick summary of what's proposed in this year's document.
Capital works
This includes:
- $41m for renewing existing infrastructure
- $65m for improving capacity and levels of service
- $39m for infrastructure to support growth
This will be funded through debt ($41m), development contributions ($9.6m) and external subsidies ($59m).
The work programme also includes the continuation of projects such as: Rotorua Museum redevelopment, Tarawera sewerage scheme and the upgrade of our wastewater treatment plant.
Rates
Your rates pay for a wide range of services and work programmes including sewerage and sewage, stormwater and land drainage, water supply, waste management, district development, regulatory services, roads and footpaths, community leadership and community wellbeing.
This is in comparison to the general rates increase of 9.8% that was anticipated in the 2025/26 Year 2 LTP.
Rates for individual properties will vary due to a number of factors including the value of your property, the services your property is rated for, whether it is used for business, residential or farming purposes and any changes to the amount charged for those.
Why are we proposing a rates increase?
Increases are implemented at a rate that matches the increase to Council’s cost base. Changes to Council’s cost base are mainly driven by the expectations to deliver on solutions to the challenges the district faces, increases in compliance and regulation and financial factors such as inflation and depreciation.
Council acknowledges that household budgets are under pressure. The same applies to Council with many factors influencing and creating pressure on Council services that lead to increased costs. Council has made a concerted effort to keep the proposed 2025/26 general rates increase as low as possible.
Debt
Council uses borrowing to improve facilities and infrastructure. It does not borrow to fund for operational purposes, nor to renew existing assets.
Funding capital projects through debt spreads the burden over current and future generations that will benefit from these. Unlike residential and business borrowing, which is secured against assets, Council’s borrowings are secured against its revenue, in particular its ability to rate.
Council borrows from LGFA (Local Government Funding Agencies) and banks.
What is the current status of Council’s debt?
This is a prudent level of borrowing that ensures we continue to operate within the legislated debt limit.
Council has a debt ceiling of no more than 2.5 times its annual revenue (a 250% debt to revenue ratio) and in 2025/26 the ratio is expected to be about 199%.
What could my rates be?
Enter your address in our Rating Information Database to find out what your rates could be for 2025 - 2026.
