Council discusses the revised draft budget for Annual Plan 2026/27
Buller District Council (BDC) discussed a revised draft budget for the Annual Plan 2026/27 at its public workshop this week
The revised budget proposes an average rate increase of 9.05% for the coming financial year (1 July 2026 to 30 June 2027), which is in line with the forecast 9.05% increase in the 2025-2034 Long-Term Plan (LTP).
The first version of the draft budget presented to council last month suggested a 15.63% rate increase.
Staff reviewed the budget, reduced costs, and generated additional income across several areas to match the LTP-forecasted rate increase. The biggest cost reduction was achieved in the Westport wastewater/stormwater separation project, which will separate stormwater from wastewater that is currently jointly discharged into the stormwater network from private properties.
This multi-year project will begin in 2026, was approved as part of the LTP 2025-2034 and is required to renew Westport’s wastewater consent.
Other areas where costs were able to be reduced were delaying recruitment, spending less on legal advice, reducing infrastructure repairs and maintenance, reducing vehicle insurance premiums, and undertaking currently contracted-out roading services internally.
Additional income will be generated by selling vehicles and council property, and by increasing the income paid to council by Buller Holdings Ltd. Overall, the additional income, combined with the savings, totals $1.52 million that will be shaved off the Annual Plan 2026/27 budget.
Group Manager Corporate Services Lesley Crichton says: “The savings mean the council can continue delivering core services to the community, but the lean budget and staffing levels mean progress on some initiatives and projects will be slower.”
In the infrastructure space, projects have been drawn out to spread the costs and associated depreciation. The reduction in infrastructure repairs for 2026/27 increases the risk that the current infrastructure could fail sooner, and repairs could cost more than being proactively fixed.
Staff highlighted that external factors, such as reforms and legislative changes, will create additional work for council, and that the current budget and staffing levels will not resource this additional work.
Ms Crichton says: “The budget is a very lean representation of what council needs to provide key services to the community. It doesn't allow big projects to move quickly or for additional work to be done, and it will mean slowing down in certain areas.”
“This budget is a fine balancing act of having just enough to keep the district running and acknowledging the risk that comes with this lean approach.”
Debt is expected to be around $47 m, compared to the $50 m estimated in the LTP.
If council includes the purchase of new software to produce more robust financial forecasting, and if it opts to co-fund 40% ($3.49 m) of the cost of integrating Westport’s stormwater system into the flood protection, the rate increase would be 10.1%.
Ms Crichton says: “We have used the information we have at hand to calculate costs, but there are also unknown external factors that will impact interest rates and commodity prices.”
“We priced these as best we could in developing the budget. Still, given the current unpredictable global situation, including the unrest in the Middle East, the reality could look very different in the near future. It could mean we have to manage significantly higher costs to deliver what we are promising to the community.”
Council will adopt the draft Annual Plan 2026/27 in early April, which will include the finalised budget and proposed rates increase.
Consultation on the Annual Plan 2026/27 will open in April and close in early May 2026.
-ENDS-
For further information please contact:
Community Engagement Team
Buller District Council
Media.Enquiries@bdc.govt.nz
Disclaimer
The information in this media release was correct at time of publication. Changes in circumstances after the time of publication may impact on the accuracy of the information.