The predicted rate increase for Environment Southland for the coming year has dropped.
At a meeting on Thursday, Environment Southland councillors set the rates for the 2025-26 financial year.
In a statement, the council said it would continue its focus on increasing the resilience of the region to flood risk but reduced the average rate increase from 12.9% to 8.8% for the 2025-26 year.
This will mean an increase of $32 for the year or 62c a week for a property with the median residential value in Southland ($450,000).
The council was in year two of a transition changing how it rates for land and river management, and this could add to rates ($17 for average $450,000 property, dependent on location).
Environment Southland chairman Nicol Horrell said the proposed reduction to the overall rate rise had been achieved through about $1million of operational cost savings.
These included changes to the timing of regional planning processes due to national policy shifts, consent monitoring efficiencies, and other efficiency gains across the organisation.
There are also reduced interest rates and depreciation costs, along with $350,000 of projected unspent funding from this year offsetting costs.
While there were no significant changes to the 2025-26 work programme from the long-term plan 2024-34, the council was acutely aware of ongoing cost of living concerns in the community, he said.
"Affordability is a key concern, and we have a strong focus on finding ways to maximise value for the community and minimise rates increases."
The previously forecast 12.9% average rates increase in the plan had been driven by a range of factors, including a reduction in the use of reserves, planned flood protection work, the end of government funding for biodiversity work, and inflation, interest and asset funding (debt and depreciation).
Since the adoption of the plan in July 2024, several factors have changed, including a $620,000 reduction of the forecast marine fee income, confirmation of the level of government co-funding for climate resilience projects, and increasing insurance costs, Mr Horrell said.
The council would not be consulting on the 2025-26 annual plan.
The council would however, be seeking community feedback on the proposed average rates increase of 8.8%.
Feedback is open as of this week and forms are available at libraries and service centres around the region, or at www.es.govt.nz. — APL
