Annual Plan 2026-2027

Introduction from the Mayor

Our draft Annual Plan sets out what we propose to achieve in the 2026/27 financial year, which is the second year of our 9 Year Plan 2025-34.

Encouragingly, this draft closely reflects the 9 Year Plan’s forecast work and budgets, which we consulted with you about last year. This shows our planning was sound and we’re staying steady on our course. We are only asking for your feedback on one key topic from 30 March to 29 April because there are so few changes in this year’s draft Annual Plan.

That topic is a proposed change to the rating method intended to address a significant rise in the valuation of our water assets. Our proposal would prevent a correspondingly significant rise in your water rates, where applicable. You’ll see information below.

Because we know interest in the Stadium’s future is high, we’ve also included information here about our proposal to help address Stadium expenses and debt in the long term.

We know you’ll have a lot of ideas about other ways we can continue to make Ōtepoti Dunedin one of the world’s great small cities. The best way for you to let us know what’s really important to you and how you want your rates spent in future will be through our next long term plan process.

We'll be developing a draft 10 Year Plan in the coming months which we’ll put out for consultation in early 2027.

Keep an eye on the DCC website and social media for more information. We look forward to hearing from you.

Sophie Barker

Mayor of Dunedin

Draft Annual Plan 2026/27 Consultation Document

What’s this Annual Plan for?

Our draft Annual Plan 2026/27 updates year two of the latest Long Term Plan (LTP), i.e. our ‘9 Year Plan 2025-34’. Councils produce Annual Plans to provide an update on what has changed since the Council adopted its most recent LTP and outlines what it plans to deliver in the coming financial year.

Every three years, councils across New Zealand are required to prepare a Long Term Plan under the Local Government Act 2002. This is normally a 10 year plan that outlines the services and activities that Council intends to deliver, how it will fund them and the expected impact on rates and debt.

In 2024, the DCC decided to delay its usual 10 year plan and so it adopted a 9 year plan in June 2025 instead. Although one year shorter, the 9 Year Plan 2025-34 still serves the same purpose as a standard LTP.

What’s different about this draft Annual Plan?

The overall proposed rates increase is 10.5%.

However, the Dunedin City Council, along with many Councils around the country is now breaking the overall increase down into two rates increases – a non-water rate increase and a 3 Waters rate increase – to reflect the changes required around the delivery of water services. This distinction will be important in coming years as the government’s proposed rates cap applies to non-water rates only. The cap is expected to exclude water services.

The proposed non-water rate increase is 6.9% - lower than the 8.5% forecast in the 9 Year Plan. This reflects a lot of hard work by everyone to control costs, make sure we are focussing on the right things, and prepare for signalled rates caps. It includes an additional payment for the Stadium of $1.25 million.

The 3 Waters rate increase is 16.7%, which is higher than the 9 Year Plan forecast of 15%. This is because the value of water assets has increased with a corresponding increase in replacement costs (depreciation), which Council is required to fund.

How fuel price changes may affect council costs

Fuel prices have increased and remain uncertain, largely due to global pressures, including the conflict in the Middle East. We acknowledge the very real human cost of the war and its impacts on communities directly affected.

Dunedin City Council has business continuity plans in place to manage unforeseen events, such as fuel supply disruptions or sharp price increases. These plans are focused on ensuring essential services continue to operate.

National fuel pressures and the country’s position under the Government’s fuel traffic‑light settings may temporarily reduce some service levels. For example, the Council may defer non‑essential or lower‑priority maintenance until fuel supply and pricing pressures ease.

Korerohia mai / Join the conversation

Why make a submission?

You can provide your feedback on the contents of the draft Annual Plan by making a submission. Your comments will be part of a report to Council. You can also choose to speak and to have your views heard by Councillors. After the hearings, Council will deliberate and make final decisions. The 2026/27 Annual Plan will be adopted by 30 June 2026.

Submissions closed

Submissions closed at noon on Wednesday, 29 April 2026

Thank you for your submissions

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