Agenda of Council - Monday, 30 June 2025

Council

30 June 2025

Reports

Adoption of the 9 year plan 2025-34

Department: Civic and Finance

EXECUTIVE SUMMARY

1 This report recommends the adoption of the 9 year plan 2025-34 (9 year plan). It describes changes made to the plan since it was approved for consultation on 26 March 2025.

2 Audit New Zealand (Audit NZ) is currently auditing the 9 year plan document and will provide the Council with an ‘Independent Auditor’s report’ on completion of the audit.

RECOMMENDATIONS

That the Council:

a) Adopts the Revenue and Financing Policy in inclusion in the 9 year plan 2025-34.

b) Approves the 9 year plan 2025-34.

c) Receives the ‘Independent auditor’s report on the Dunedin City Council’s 9 year plan 2025-34.

d) Adopts the 9 year plan 2025-34

e) Authorises the Council’s Chief Executive Officer to make any minor editorial changes resulting from the final quality checks that will occur prior to the printing of the 9 year plan 2025-34 document.

f) Authorises the Chief Executive Officer to drawdown debt up to total debt of $800 million in the 2025/26 year.

BACKGROUND

3 Following the enactment of the Water Services Act Repeal Act on 16 February 2024, at its meeting on 27 February, Council approved taking up the option of preparing an enhanced 2024/25 Annual Plan for community consultation, followed by the completion of a 9 year plan for the period 2025-34.

4 The Local Government Act 2002 (LGA) provides that the purpose of a long term plan is to describe the Council’s activities; describe the community outcomes for Dunedin; provide integrated decision-making and co-ordination of resources; provide a long-term focus for the decisions and activities of the Council; and provide a basis for accountability of the local authority to the community.

5 Schedule 10 of the LGA specifies the minimum information and content that must be included in the long term plan including groups of activities (including capital expenditure, levels of service and funding impact statements); Council controlled organisations; Financial Strategy; Infrastructure Strategy; Revenue and Financing Policy; forecast financial statements (including balancing of budget, rating information and reserve funds); and significant forecasting assumptions.

6 The 9 year plan must be adopted before the commencement of the first year to which it relates (1 July 2025), and continues in force until the close of the second consecutive year to which it relates.

7 At its meeting on 26 March 2025, Council adopted the 9 year plan consultation document for consultation with the community. The consultation document explained the Council’s proposals for the 9 year plan, based on decisions made by Council at its 10-11 December 2024 meeting, 28-30 January 2025 meeting and 26 February 2025 meeting.

8 The community consultation and engagement period ran from 31 March to 30 April 2025. A range of community feedback activities and events were held during this period.

9 Council considered the community feedback received and made final decisions on that feedback at its deliberations meeting on Monday 26 May to Thursday 29 May 2025. Reports presented at the deliberations meeting included a summary of the feedback received, requests for funding and new amenities/projects, and information on two specific engagement topics, entry fees for international visitors to Toitū and Dunedin Public Art Gallery, and the removal of 231 Stuart Street from the list of strategic assets.

DISCUSSION

10 The final 9 year plan document has been developed based on the content of the consultation document and the supporting documents previously approved by Council. The document reflects the resolutions made by Council during deliberations and decision making in May 2025.

11 The following points should be noted in relation to the financial statements:

· Council has a balanced budgeted throughout the nine years of the plan,

· The overall rates increase for 2025/26 (year 1) is 10.7%,

· Forecast debt at 30 June 2026 is $783 million, increasing to $1.165 billion by 30 June 2034.

12 Capital budgets have been updated to reflect decisions made at the deliberations meeting, including providing for a zero carbon investment package, and providing for the replacement of the Edgar Stadium roof.

13 The final 9 year plan will include an opinion from the Auditor General on the extent to which the Council has complied with the legislative purpose of a 9 year plan and the quality of the information and assumptions underlying the forecast information in the plan.

14 Audit NZ, on behalf of the Auditor General, has reviewed the changes made to the 9 year plan content since the audit of the consultation document and supporting documents in February / March 2025. An update on the status of the audit opinion will be given at the meeting.

OPTIONS

15 As the adoption of the 9 year plan is a legal requirement, there are no options.

NEXT STEPS

16 Once adopted, the 9 year plan will be subject to final quality checks and graphic design, and printed for public distribution in hard copy and on the Council’s website.

Signatories

Author:

Sharon Bodeker - Special Projects Manager

Hayden McAuliffe - Financial Services Manager

Authoriser:

Carolyn Allan - Chief Financial Officer

Sandy Graham - Chief Executive Officer

Attachments

	Title	Page
⇨a	9 year plan 2025-34 (Under Separate Cover 1)

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision enables democratic local decision making and action by, and on behalf of communities, and promotes the social, economic, environmental and cultural well-being of communities in the present and for the future.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	✔	☐	☐
Economic Development Strategy	✔	☐	☐
Environment Strategy	✔	☐	☐
Arts and Culture Strategy	✔	☐	☐
3 Waters Strategy	✔	☐	☐
Future Development Strategy	✔	☐	☐
Integrated Transport Strategy	✔	☐	☐
Parks and Recreation Strategy	✔	☐	☐
Other strategic projects/policies/plans	✔	☐	☐

The 9 year plan contributes to all of the objectives and priorities of the strategic framework as it describes the Council’s activities, the community outcomes, and provides a long term focus for decision making and coordination of the Council’s resources, as well as a basis for community accountability.

Māori Impact Statement

As part of the DCC’s ongoing commitment to working in partnership with mana whenua, consultation and engagement processes for the 9 year plan ensured opportunities for Māori, both mana whenua and mātāwaka, to contribute to the decision-making process.

Sustainability

The 9 year plan has considered various aspects of the Council’s approach to sustainability. Major issues and implications for sustainability are discussed in the Infrastructure Strategy and financial resilience is discussed in the Financial Strategy.

Zero carbon

Zero carbon has been considered throughout the development of the 9 year plan.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides for the completion of the 9 year plan.

Financial considerations

This report provides for the completion of the 9 year plan.

Significance

The 9 year plan was formally consulted on using the special consultative procedure.

Engagement – external

The community was engaged on the draft 9 year plan.

Engagement - internal

Staff and managers from across the Council have been involved in the development of draft budgets, options reports and update reports for the 9 year plan.

Risks: Legal / Health and Safety etc.

Any specific risks in the development of the 9 year plan were considered in the relevant supporting documents. The significant forecasting assumptions highlight these in detail and the assumptions have driven the content of the 9 year plan.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards were engaged during the development of the plan. The Community Boards have participated in the consultation process, and all have submitted on the plan.

Council

30 June 2025

Setting of Rates for the 2025/26 Financial Year

Department: Finance

EXECUTIVE SUMMARY

1. Following adoption of the 9 year plan 2025-34, the council now needs to set the rates as provided for in the Funding Impact Statement for the 2025/26 year.

RECOMMENDATIONS

That the Council:

a) Sets the following rates under the Local Government (Rating) Act 2002 on rating units in the district for the financial year commencing 1 July 2025 and ending on 30 June 2026.

1. General Rate

A general rate set under section 13 of the Local Government (Rating) Act 2002 made on every rating unit, assessed on a differential basis as described below:

· A rate of 0.3077 cents in the dollar (including GST) of capital value on every rating unit in the "residential" category.

· A rate of 0.2923 cents in the dollar (including GST) of capital value on every rating unit in the "lifestyle" category.

· A rate of 0.7693 cents in the dollar (including GST) of capital value on every rating unit in the "commercial" category.

· A rate of 0.5385 cents in the dollar (including GST) of capital value on every rating unit in the "residential heritage bed and breakfasts" category.

· A rate of 0.2462 cents in the dollar (including GST) of capital value on every rating unit in the "farmland" category.

· A rate of 0.0563 cents in the dollar (including GST) of capital value on the “stadium: 10,000+ seat capacity” category.

2. Community Services Rate

A targeted rate for community services, set under section 16 of the Local Government (Rating) Act 2002, assessed on a differential basis as follows:

· $121.00 (including GST) per separately used or inhabited part of a rating unit for all rating units in the "residential, residential heritage bed and breakfasts, lifestyle and farmland" categories.

· $121.00 (including GST) per rating unit for all rating units in the "commercial and stadium: 10,000+ seat capacity" categories.

3. Kerbside Collection Rate

A targeted rate for kerbside collection, set under section 16 of the Local Government (Rating) Act 2002, assessed on a differential basis as follows:

· $343.40 (including GST) per separately used or inhabited part of a rating unit for rating units in the "residential, residential heritage bed and breakfasts, lifestyle and farmland" categories.

· $343.40 (including GST) per rating unit for rating units in the "commercial" category.

4. Drainage Rates

A targeted rate for drainage, set under section 16 of the Local Government (Rating) Act 2002, assessed on a differential basis as follows:

· $884.40 (including GST) per separately used or inhabited part of a rating unit for all rating units in the "residential, residential heritage bed and breakfasts, lifestyle and farmland" categories and which are "connected" to the public sewerage system.

· $442.20 (including GST) per separately used or inhabited part of a rating unit for all rating units in the "residential, residential heritage bed and breakfasts, lifestyle and farmland" categories and which are "serviceable" by the public sewerage system.

· $884.40 (including GST) per rating unit for all rating units in the "commercial, residential institutions, schools and stadium: 10,000+ seat capacity" categories and which are "connected" to the public sewerage system.

· $442.20 (including GST) per rating unit for all rating units in the "commercial, residential institutions and schools" categories and which are "serviceable" by the public sewerage system.

· $102.25 (including GST) per rating unit for all rating units in the "church" category and which are "connected" to the public sewerage system.

Rating units which are not "connected" to the scheme, and which are not "serviceable" will not be liable for this rate. Drainage is a combined targeted rate for sewage disposal and stormwater. Sewage disposal makes up 78% of the drainage rate, and stormwater makes up 22%. Non-rateable land will not be liable for the stormwater component of the drainage targeted rate. Rates demands for the drainage targeted rate for non-rateable land will therefore be charged at 78%.

5. Commercial Drainage Rates – Capital Value

A targeted rate for drainage, set under section 16 of the Local Government (Rating) Act 2002, assessed on a differential basis as follows:

· A rate of 0.3018 cents in the dollar (including GST) of capital value on every rating unit in the "commercial and residential institution" category and which are "connected" to the public sewerage system.

· A rate of 0.1509 cents in the dollar (including GST) of capital value on every rating unit in the "commercial" category and which are "serviceable" by the public sewerage system.

· A rate of 0.2264 cents in the dollar (including GST) of capital value on every rating unit in the "school" category and which are "connected" to the public sewerage system.

· A rate of 0.1132 cents in the dollar (including GST) of capital value on every rating unit in the "school" category and which are "serviceable" by the public sewerage system.

· A rate of 0.0206 cents in the dollar (including GST) of capital value on the “stadium: 10,000+ seat capacity” category.

This rate shall not apply to properties in Karitane, Middlemarch, Seacliff, Waikouaiti and Warrington. This rate shall not apply to churches. Drainage is a combined targeted rate for sewage disposal and stormwater. Sewage disposal makes up 78% of the drainage rate, and stormwater makes up 22%. Non-rateable land will not be liable for the stormwater component of the drainage targeted rate. Rates demands for the drainage targeted rate for non-rateable land will therefore be charged at 78%.

6. Water Rates

A targeted rate for water supply, set under section 16 of the Local Government (Rating) Act 2002, assessed on a differential basis as follows:

· $671.80 (including GST) per separately used or inhabited part of any "connected" rating unit which receives an ordinary supply of water within the meaning of the Dunedin City Bylaws excepting properties in Karitane, Merton, Rocklands/Pukerangi, Seacliff, Waitati, Warrington, East Taieri, West Taieri and North Taieri.

· $335.90 (including GST) per separately used or inhabited part of any "serviceable" rating unit to which connection is available to receive an ordinary supply of water within the meaning of the Dunedin City Bylaws excepting properties in Karitane, Merton, Rocklands/Pukerangi, Seacliff, Waitati, Warrington, East Taieri, West Taieri and North Taieri.

· $671.80 (including GST) per unit of water being one cubic metre (viz. 1,000 litres) per day supplied at a constant rate of flow during a full 24 hour period to any "connected" rating unit situated in Karitane, Merton, Seacliff, Waitati, Warrington, West Taieri, East Taieri or North Taieri.

· $335.90 (including GST) per separately used or inhabited part of any "serviceable" rating unit situated in Waitati, Warrington, West Taieri, East Taieri or North Taieri. This rate shall not apply to the availability of water in Merton, Karitane or Seacliff.

7. Fire Protection Rates

A targeted rate for the provision of a fire protection service, set under section 16 of the Local Government (Rating) Act 2002, assessed on a differential basis as follows:

· A rate of 0.0860 cents in the dollar (including GST) of capital value on all rating units in the "commercial" category. This rate shall not apply to churches.

· A rate of 0.0645 cents in the dollar (including GST) of capital value on all rating units in the "residential institutions" category.

· A rate of 0.0084 cents in the dollar (including GST) of capital value on the “stadium: 10,000+ seat capacity” category.

· $201.54 (including GST) for each separately used or inhabited part of a rating unit within the "residential, residential heritage bed and breakfasts, lifestyle and farmland" category that is not receiving an ordinary supply of water within the meaning of the Dunedin City Bylaws.

8. Water Rates – Quantity of Water

A targeted rate for the quantity of water provided to any rating unit fitted with a water meter, being an extraordinary supply of water within the meaning of the Dunedin City Bylaws, set under section 19 of the Local Government (Rating) Act 2002, according to the following scale of charges (GST inclusive):

	Annual Meter Rental Charge
20mm nominal diameter	$186.93
25mm nominal diameter	$239.98
30mm nominal diameter	$266.51
40mm nominal diameter	$301.86
50mm nominal diameter	$611.32
80mm nominal diameter	$755.30
100mm nominal diameter	$796.30
150mm nominal diameter	$1,145.58
300mm nominal diameter	$1,486.60
70mm Hydrant Standpipe	$740.15
Reconnection Fee – includes the removal of water restrictors installed due to non-compliance of the water bylaw	$520.98
Special Reading Fee	$70.80
	Backflow Prevention Charge
Backflow Preventer Test Fee	$147.94
Rescheduled Backflow Preventer Test Fee	$88.30
Backflow Programme - incomplete application fee (hourly rate)	$51.94
	Water Charge
Merton, Hindon and individual farm supplied Bulk Raw Water Tariff	$0.15 per cubic metre
All other treated water per cubic metre	$2.55 per cubic metre
	Network Contributions
Disconnection of Water Supply – AWSCI to excavate	$290.12
Disconnection of Water Supply – DCC contractor to excavate	$1,136.73

Where the supply of a quantity of water is subject to this Quantity of Water Targeted Rate, the rating unit will not be liable for any other targeted rate for the supply of the same water.

9. Allanton Drainage Rate

A targeted rate for the capital contribution towards the Allanton Wastewater Collection System, set under section 16 of the Local Government (Rating) Act 2002, of $411.00 (including GST) per rating unit, to every rating unit paying their contribution towards the scheme as a targeted rate over 20 years. Liability for the rate is on the basis of the provision of the service to each rating unit. The Allanton area is shown in the map below:

10. Blanket Bay Drainage Rate

A targeted rate for the capital contribution towards the Blanket Bay Drainage System, set under section 16 of the Local Government (Rating) Act 2002, of $636.00 (including GST) per rating unit, to every rating unit paying their contribution towards the scheme as a targeted rate over 20 years. Liability for the rate is on the basis of the provision of the service to each rating unit. The Blanket Bay area is shown in the map below:

11. Curles Point Drainage Rate

1 A targeted rate for the capital contribution towards the Curles Point Drainage System, set under section 16 of the Local Government (Rating) Act 2002, of $749.00 (including GST) per rating unit, to every rating unit paying their contribution towards the scheme as a targeted rate over 20 years. Liability for the rate is on the basis of the provision of the service to each rating unit. The Curles Point area is shown in the map below:

12. Warm Dunedin Targeted Rate Scheme

A targeted rate for the Warm Dunedin Targeted Rate Scheme, set under section 16 of the Local Government (Rating) Act 2002, per rating unit in the Warm Dunedin Targeted Rate Scheme.

The targeted rate scheme provides a way for homeowners to install insulation and/or clean heating. The targeted rate covers the cost and an annual interest rate. The interest rates have been and will be:

Rates commencing 1 July 2013 and 1 July 2014 8%

Rates commencing 1 July 2015 and 1 July 2016 8.3%

Rates commencing 1 July 2017 7.8%

Rates commencing 1 July 2018 7.2%

Rates commencing 1 July 2019 6.8%

Rates commencing 1 July 2020 5.7%

Rates commencing 1 July 2021 4.4%

13. Private Street Lighting Rate

A targeted rate for the purpose of recovering the cost of private street lights, set under section 16 of the Local Government (Rating) Act 2002, assessed on a differential basis as follows:

· $156.80 (including GST) per private street light divided by the number of separately used or inhabited parts of a rating unit for all rating units in the "residential and lifestyle" categories in the private streets as identified in the schedule below.

· $156.80 (including GST) per private street light divided by the number of rating units for all rating units in the "commercial" category in the private streets as identified in the schedule below.

Differential Matters and Categories

b) Adopts the following differential categories for the 2025/26 financial year.

The differential categories are determined in accordance with the Council's land use codes. The Council's land use codes are based on the land use codes set under the Rating Valuation Rules 2008 and are set out in Attachment A. In addition, the Council has established categories for residential institutions, residential heritage bed and breakfasts, the stadium: 10,000+ seat capacity, churches, and schools.

1. Differentials Based on Land Use

The Council uses this matter to:

· Differentiate the General rate.

· Differentiate the Community Services rate.

· Differentiate the Kerbside Collection rate.

· Differentiate the Private Street Lighting rate.

· Differentiate the Fire Protection rate.

The differential categories based on land use are:

· Residential – includes all rating units used for residential purposes including single residential, multi-unit residential, multi-use residential, residential special accommodation, residential communal residence dependant on other use, residential bach/cribs, residential carparking and residential vacant land.

· Lifestyle – includes all rating units with Council's land use codes 2, 20, 21, 22 and 29.

· Commercial – includes all rating units with land uses not otherwise categorised as Residential, Residential Heritage Bed and Breakfasts, Lifestyle, Farmland or Stadium: 10,000+ seat capacity.

· Farmland - includes all rating units used solely or principally for agricultural or horticultural or pastoral purposes.

· Residential Heritage Bed and Breakfasts – includes all rating units meeting the following description:

· Bed and breakfast establishments; and

· Classified as commercial for rating purposes due to the number of bedrooms (greater than four); and

· Either:

· the majority of the establishment is at least 80 years old, or

· the establishment has Heritage New Zealand Pouhere Taonga Registration, or

· the establishment is a Dunedin City Council Protected Heritage Building as identified in the District Plan; and

· The bed and breakfast owner lives at the facility.

· Stadium: 10,000+ seat capacity – this includes land at 130 Anzac Avenue, Dunedin, Assessment 4026695, Valuation reference 27190-01403.

2. Differentials Based on Land Use and Provision or Availability of Service

The Council uses these matters to differentiate the drainage rate and the commercial drainage rate.

The differential categories based on land use are:

· Lifestyle - includes all rating units with Council's land use codes 2, 20, 21, 22 and 29.

· Farmland - includes all rating units used solely or principally for agricultural or horticultural or pastoral purposes.

· Commercial – includes all rating units with land uses not otherwise categorised as Residential, Residential Heritage Bed and Breakfasts, Lifestyle, Farmland, Residential Institutions, Stadium: 10,000+ seat capacity, Churches or Schools.

· Stadium: 10,000+ seat capacity – this includes land at 130 Anzac Avenue, Dunedin, Assessment 4026695, Valuation reference 27190-01403.

· Residential Heritage Bed and Breakfasts – includes all rating units meeting the following description:

· Bed and breakfast establishments; and

· Classified as commercial for rating purposes due to the number of bedrooms (greater than four); and

· Either:

• the majority of the establishment is at least 80 years old or

• the establishment has Heritage New Zealand Pouhere Taonga Registration or

• the establishment is a Dunedin City Council Protected Heritage Building as identified in the District Plan; and

· The bed and breakfast owner lives at the facility.

· Residential Institutions - includes only rating units with the Council's land use codes 95 and 96.

· Churches – includes all rating units used for places of religious worship.

· Schools - includes only rating units used for schools that do not operate for profit.

The differential categories based on provision or availability of service are:

· Connected – any rating unit that is connected to a public sewerage drain.

· Serviceable – any rating unit that is not connected to a public sewerage drain but is capable of being connected to the sewerage system (being a property situated within 30 metres of a public drain).

3. Differentials Based on Provision or Availability of Service

The Council uses this matter to differentiate the water rates.

The differential categories based on provision or availability of service are:

· Connected – any rating unit that is supplied by the water supply system.

· Serviceable – any rating unit that is not supplied but is capable of being supplied by the water supply system (being a rating unit situated within 100 metres of the nearest water supply).

Minimum Rates

c) Approves that where the total amount of rates payable in respect of any rating unit is less than $5.00 including GST, the rates payable in respect of the rating unit shall be such amount as the Council determines but not exceeding $5.00 including GST.

Low Value Rating Units

d) Approves that rating units with a capital value of $8,500 or less will only be charged the general rate.

Land Use Codes

e) Approves that the land use codes attached to this report are adopted as the Council's land use codes for the purpose of the rating method.

Separately Used or Inhabited Part of a Rating Unit

f) Adopts the following definition of a separately used or inhabited part of a rating unit:

"A separately used or inhabited part of a rating unit includes any portion inhabited or used by the owner/a person other than the owner, and who has the right to use or inhabit that portion by virtue of a tenancy, lease, licence, or other agreement.

This definition includes separately used parts, whether or not actually occupied at any particular time, which are provided by the owner for rental (or other form of occupation) on an occasional or long term basis by someone other than the owner.

For the purpose of this definition, vacant land and vacant premises offered or intended for use or habitation by a person other than the owner and usually used as such are defined as 'used'.

For the avoidance of doubt, a rating unit that has a single use or occupation is treated as having one separately used or inhabited part."

Lump Sum Contributions

g) Approves that no lump sum contributions will be sought for any targeted rate.

Rating by Instalments

h) Approves the following schedule of rates to be collected by the Council, payable by four instalments.

The City is divided into four areas based on Valuation Roll Numbers, as set out below:

Area 1	Area 2	Area 3	Area 3 continued
Valuation Roll Numbers:
26700	26990	26500	27550
26710	27000	26520	27560
26760	27050	26530	27600
26770	27060	26541	27610
26850	27070	26550	27760
26860	27080	26580	27770
26950	27150	26590	27780
26960	27350	26620	27790
26970	27360	26640	27811
26980	27370	26651	27821
27160	27380	26750	27822
27170	27500	26780	27823
27180	27510	27250	27831
27190	27520	27260	27841
27200	27851	27270	27871
	27861	27280	27911
	27880	27450	27921
	27890	27460	27931
	27901	27470	27941
	28000
	28010
	28020

Area 4 comprises ratepayers with multiple assessments who pay on a schedule.

Due Dates for Payment of Rates

i) Approves the due dates for all rates with the exception of water rates, which are charged based on water meter consumption, will be payable in four instalments due on the dates below:

	Area 1	Area 2	Area 3	Area 4
Instalment 1	29/08/25	12/09/25	26/09/25	12/09/25
Instalment 2	21/11/25	05/12/25	19/12/25	05/12/25
Instalment 3	20/02/26	27/02/26	13/03/26	27/02/26
Instalment 4	15/05/26	22/05/26	05/06/26	22/05/26

Water meter invoices are sent separately from other rates. Where water rates are charged based on metered consumption using a meter other than a Smart Water Meter, invoices are sent on a quarterly or monthly basis and the due date for payment shall be on the 20th of the month following the date of the invoice as set out in the table below:

Date of Invoice	Date for Payment
July 2025	20 August 2025
August 2025	20 September 2025
September 2025	20 October 2025
October 2025	20 November 2025
November 2025	20 December 2025
December 2025	20 January 2026
January 2026	20 February 2026
February 2026	20 March 2026
March 2026	20 April 2026
April 2026	20 May 2026
May 2026	20 June 2026
June 2026	20 July 2026

Penalties

j) Resolves to charge the following penalties on unpaid rates:

1 A charge of 10% of the unpaid rates instalment will be added to the amount of any instalment remaining unpaid the day after the instalment due date set out above.

2 Where a ratepayer has not paid the first instalment by the due date of that instalment, and has paid the total rates and charges in respect of the rating unit for the 2025/26 rating year by the due date of the second instalment, the 10% additional charge for the first instalment shall be remitted.

3 For amounts levied in any previous financial year and which remain unpaid on 1 October 2025, 10% of that sum shall be charged, including additional charges (if any).

4 For amounts levied in any previous financial year and which remain unpaid on 1 April 2026, 10% of that sum shall be charged, including additional charges (if any).

Assessing and Recovering Rates

k) Approves that the Chief Executive Officer, Chief Financial Officer and Rates and Revenue Team Leader be authorised to take all necessary steps to assess and recover the above rates.

BACKGROUND

2. The rating method for the 2025/26 year formed part of the supporting documentation made available during the community engagement period of the 9 year plan 2025-34.

3. On 28 January 2025, the rating method 2025/26 was presented to Council with a recommendation to combine the Tourism/Economic Development targeted rate into the Commercial General Rate. Council resolved as follows:

Moved (Cr Bill Acklin/Cr Steve Walker):

That the Council:

a) Approves an increase in the Community Services targeted rate for the 2025/26 year of $4.00 to $121.00 including GST.

c) Combines the Tourism/Economic Development targeted rate into the Commercial General Rate.

d) Approves the current rating method for the setting of all other rates for the 2025/26 year.

Motion carried (CNL/2025/001)

3 Please note that unless specified, all rating figures in this report are GST inclusive.

DISCUSSION

4. The rating method for the 2025/26 year incorporates the following changes:

· An increase in the Community Services targeted rate from $117.00 to $121.00.

· The differentiated stadium: 10,000+ capacity rates have been increased by the June 2024 Local Government Cost Index of 3.3%.

· The Tourism/Economic Development targeted rate is combined into the Commercial General Rate.

Limit on "Fixed" Charging

5. Section 21 of the Local Government (Rating) Act 2002 includes a limit on certain rates. In any one year, the Council may not collect more than 30% of its total rates revenue by way of:

· Any uniform annual general charge.

· Any targeted rate that is calculated as a fixed amount per rating unit or separately used or inhabited part of a rating unit (and which is not used solely for water supply or sewage disposal).

6. The Council does not use a uniform annual general charge. The relevant targeted rates for the 2025/26 year are the Kerbside Collection rate, the Community Services rate and the Drainage fixed charge. These rates equate to 24% of total rates revenue.

OPTIONS

7. The option provided is to set rates in accordance with the Local Government Act 2002 and the Local Government (Rating) Act 2002 in order to provide rates funding in the 2025/26 year in accordance with the 2025/26 budget.

NEXT STEPS

8. The Council can now set and assess the rates described in its Funding Impact Statement.

Signatories

Author:	Hayden McAuliffe - Financial Services Manager
Authoriser:	Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	Land use codes	37

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision enables democratic local decision making and action by, and on behalf of communities and promotes the social, economic, environmental and cultural well-being of communities in the present and for the future.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	✔	☐	☐
Economic Development Strategy	✔	☐	☐
Environment Strategy	✔	☐	☐
Arts and Culture Strategy	✔	☐	☐
3 Waters Strategy	✔	☐	☐
Future Development Strategy	✔	☐	☐
Integrated Transport Strategy	✔	☐	☐
Parks and Recreation Strategy	✔	☐	☐
Other strategic projects/policies/plans	✔	☐	☐

This decision fits with the strategic framework because it provides the necessary rates funding to implement the activities outlined in the 9 year plan 2025-34.

Māori Impact Statement

Sustainability

There are no implications for sustainability.

Zero carbon

There are no implications for emissions.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The Council has adopted the 9 year plan 2025-34 and can now set and assess the rates described in its Funding Impact Statement for the 2025/26 year.

Financial considerations

The Council has adopted the 9 year plan 2025-34 and can now set and assess the rates described in its Funding Impact Statement.

Significance

The decision sets the rates for the 2025/26 year as outlined in the 9 year plan 2025-34.

Engagement – external

Community engagement was undertaken as part of the 9 year plan 2025-34 process.

Engagement - internal

Internal engagement has occurred with staff in the relevant departments.

Risks: Legal / Health and Safety etc.

Legal risks were considered, and appropriate advice sought.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards may be interested in this report and were involved in the 9 year plan 2025-34 engagement.

Council

30 June 2025

Christchurch City and Dunedin City Council Shared Services Update Report

Department: 3 Waters and Procurement

EXECUTIVE SUMMARY

1 This report provides an update on the progress of investigating potential shared service arrangements between Christchurch City Council and Dunedin City Council. It summarises key areas identified for further exploration and outlines the recommended next steps.

RECOMMENDATIONS

That the Council:

a) Notes the progress in exploring shared service opportunities between Dunedin City Council and Christchurch City Council.

BACKGROUND

2 Consistent with our Memorandum of Understanding (MoU), a joint working group of Dunedin City Council and Christchurch City Council staff has been formed and regular, investigatory discussions have been held. The working group split into specific working groups to facilitate focussed opportunities discovery. The working group has identified multiple opportunities for collaboration that could enhance efficiency, resilience, and cost-effectiveness of our operations.

DISCUSSION

3 The working group has assessed a broad range of opportunities across the spectrum of asset lifecycle themes, activities and associated supporting services as illustrated in the following table.

4 Several promising areas have been identified for further detailed assessment. Shading reflects the categories above.

· Procurement and Capital Projects

Bulk procurement opportunities, contract management and legal collaboration, standardised processes, and documentation.

· Operational Integration and Efficiency

Network and call centre operations, critical spares and inventory management, shared process engineering and modelling teams.

· Water Quality and Laboratory Services

Laboratory facilities, peer review and audit, compliance, and planning.

· Asset Management and Technology

IT systems and SCADA architecture, asset standardisation and coordination.

Collaborative work for condition assessment of aging infrastructure.

· Professional Services

Consultant cost savings by peer reviewing our document as legally required – cuts consultant cost.

· Workforce Development and Resilience

Business continuity planning, workforce training and development.

· Resource Efficiency and Capacity Smoothing

Economies of scale initiatives, resource management.

· Administrative and Communication Collaboration

Shared billing, joint communications.

Cross-council training programmes starting with those legally required, mainly for operations, allowing Christchurch operators to gain qualifications.

Knowledge sharing through a virtual office for project managers to start.

5 A breakdown of the opportunities chosen for further, early, progression is provided in Appendix A.

6 Work is about to commence between the two Councils on GIS and related innovation opportunities, initially exploring options for integrating geospatial data with modelling functionality.

OPTIONS

7 This paper is for noting only.

NEXT STEPS

8 The following steps are proposed:

· June – August 2025: Complete feasibility assessments of prioritised shared service opportunities.

· September 2025: Prepare implementation recommendations for council consideration.

Signatories

Author:

Dominika Biziak-Kochan - Capital Delivery Manager

Serge Kolman - Procurement and Contracts Manager

Authoriser:

David Ward - General Manager, 3 Waters and Transition

Attachments

	Title	Page
⇩a	Christchurch and Dunedin City Councils Shared Services	45

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision promotes the economic and environmental well-being of communities in the present and for the future.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	☐	☐	✔
Economic Development Strategy	☐	☐	✔
Environment Strategy	☐	☐	✔
Arts and Culture Strategy	☐	☐	✔
3 Waters Strategy	✔	☐	☐
Future Development Strategy	☐	☐	✔
Integrated Transport Strategy	☐	☐	✔
Parks and Recreation Strategy	☐	☐	✔
Other strategic projects/policies/plans	☐	☐	✔

3 Waters activities support the outcomes of a number of strategies.

Māori Impact Statement

There are no known impacts arising from this report.

Sustainability

There are no implications from this report.

Zero carbon

This is not applicable to this report.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no implications.

Financial considerations

Any activity arising from this work will be within existing budgets.

Significance

This is considered low in terms of the Significance and Engagement Policy.

Engagement – external

Engagement with Christchurch City Council.

Engagement - internal

As this is an activity update report, no internal engagement has been undertaken.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

There are no implications for Community Boards.

Council

30 June 2025

Dunedin City Holdings Group Companies - Statements of Intent 2025/26

Department: Civic

EXECUTIVE SUMMARY

1 The 2025/26 Statements of Intent (Statements) of Dunedin City Holdings Ltd (DCHL) group companies have been adopted by their respective boards and endorsed by the board of DCHL. A report for DCHL that discusses the Statements is at Attachment A, and the final Statements for each company are presented at Attachment B – J.

2 This report recommends that Council agrees to the Statements for DCHL and its group companies for the 2024/25 year.

RECOMMENDATIONS

That the Council:

a) Agrees to the completed 2025/26 Statements of Intent of Dunedin City Holdings Ltd and its subsidiary and associate companies.

BACKGROUND

3 Dunedin City Holdings Limited and its subsidiary and associate companies are required by law to prepare a Statement of Intent on an annual basis. Part 1, Schedule 8 of the Local Government Act 2002 sets out the process and timeframes for completing the Statements as follows:

· The DCHL Board must deliver draft statements to Council by 1 March.

· Council may make comments. The Board must consider any comments made.

· The statements must be finalised by the DCHL Board, and delivered to Council before the financial year commences.

· Council must publish the Statements of Intent on its website within 1 month.

4 The draft 2025/26 Statements of Intent for Dunedin City Holdings Group companies were delivered to Council by 1 March and were formally presented to the 12 March 2025 Finance and Council Controlled Organisations Committee meeting.

5 At that meeting, elected Members were asked to provide feedback on the draft Statements. Initial feedback received was informally discussed at a public workshop held on 1 April 2025. The Chair and General Manager of DCHL attended the workshop.

DISCUSSION

6 A report from Dunedin City Holdings Limited is provided at Attachment A. The report identifies changes made to the draft Statements.

7 Statements have now been finalised by the boards of DCHL and its subsidiary and associate companies, and these are presented to Council for agreement in accordance with section 65(2) of the Local Government Act 2002.

OPTIONS

8 There are no options.

Signatories

Author:	Sharon Bodeker - Special Projects Manager
Authoriser:	Sandy Graham - Chief Executive Officer

Attachments

	Title	Page
⇨a	DCHL Cover Report (Under Separate Cover 2)
⇨b	Dunedin City Holdings Ltd - SOI (Under Separate Cover 2)
⇨c	Aurora Energy Ltd - SOI (Under Separate Cover 2)
⇨d	City Forests Ltd - SOI (Under Separate Cover 2)
⇨e	Dunedin City Treasury Ltd - SOI

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

Preparation of Statements of Intent is a legislative requirement for Council Controlled Organisations.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	☐	☐	✔
Economic Development Strategy	☐	☐	✔
Environment Strategy	☐	☐	✔
Arts and Culture Strategy	☐	☐	✔
3 Waters Strategy	☐	☐	✔
Future Development Strategy	☐	☐	✔
Integrated Transport Strategy	☐	☐	✔
Parks and Recreation Strategy	☐	☐	✔
Other strategic projects/policies/plans	☐	☐	✔

All Statements of Intent take in consideration the Council’s Strategic Framework, and the themes of Council’s Letter of Expectation to DCHL.

Māori Impact Statement

There has been no engagement with Māori.

Sustainability

Statements of Intent take account sustainability matters including waste reduction and reduction of carbon emissions.

Zero carbon

Statements of Intent take account sustainability matters including reduction of carbon emissions.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no known implications.

Financial considerations

The Statements of Intent include a section on the anticipated financial performance and position.

Significance

This report is considered of low significance in terms of the Council’s Significance and Engagement Policy.

Engagement – external

There has been no external engagement outside of the DCHL Group.

Engagement - internal

Engagement with Council as ultimate shareholder was undertaken to provide feedback on the draft Statements of Intent.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

There are no known implications for Community Boards.

Council

30 June 2025

Dunedin City Holdings Limited Share Capital

Department: Finance

EXECUTIVE SUMMARY

1 Following adoption of the 9 year plan 2025-34 and agreement of the 2025/26 Statements of Intent of Dunedin City Holdings Ltd (DCHL) and its subsidiary and associate companies, the council now needs to increase the level of DCHL uncalled share capital. This is because the current DCC Group borrowing arrangements require the level of DCHL uncalled share capital to be greater than DCC Group debt.

2 This report seeks approval to increase that uncalled capital from the current $1.600 billion to $1.900 billion.

3 This level of uncalled capital aligns with the forecast group debt as at 30 June 2028 as set out in the 2025/2026 Statement of Intent for DCHL.

RECOMMENDATIONS

That the Council:

a) Approves the required increase in share capital of Dunedin City Holdings Limited to provide $1.900 billion of uncalled capital.

b) Authorises the Dunedin City Council to execute the required shareholder resolution(s) and associated documents to achieve the increase in share capital noted in (a).

c) Notes that this level of uncalled capital aligns with the forecast group debt as at 30 June 2028 as set out in the approved 2025/2026 Statement of Intent for Dunedin City Holdings Limited.

BACKGROUND

4 The assets of Aurora Energy Limited, Dunedin City Treasury Limited (DCTL) and DCHL – including its uncalled share capital – are included in the DCC Group’s existing Debenture Agreement (which underpins all DCC Group debt). The Debenture Agreement outlines the specific details of the security which investors in DCTL securities have.

5 DCHL has $1.6 billion of uncalled capital with Dunedin City Council. This is represented by shares, which have been issued by DCHL to DCC, which are currently unpaid. DCTL is permitted to issue debt securities up to the amount of $1.6 billion, the amount of uncalled capital which DCHL has with DCC.

6 This uncalled capital was last updated at the Council meeting dated 25 July 2023, with the following Council resolution:

Moved (Mayor Jules Radich/Cr Brent Weatherall):

That the Council:

a) Approves the required increase in share capital of Dunedin City Holdings Limited to provide $1.600 billion of uncalled capital.

b) Authorises the Dunedin City Council to execute the required shareholder resolution(s) and associated documents to achieve the increase in share capital noted in (a).

c) Notes that this level of uncalled capital aligned with the forecast group debt as at 30 June 2026 as set out in the approved 2023/2024 Statement of Intent for Dunedin City Holdings Limited.

Motion carried (CNL/2023/001) with Cr Lee Vandervis recording his vote against

DISCUSSION

7 The 2025/2026 Statement of Intent for DCHL is included on the Council Agenda for 30 June 2025. It includes forecast group debt of $1.865 billion by 30 June 2028. The table below provides a summary of forecast group debt over the next three financial years.

Year ending

30/06/2026

$’000

30/06/2027

$’000

30/06/2028

$’000

Term Loans

1,585,010

1,745,010

1,865,010

8 The increase in debt is primarily driven by the planned capital expenditure programmes for:

· Aurora Energy Limited, and

· Dunedin City Council as set out in the approved 9 year plan 2025-2034.

9 It is important to note that the increase to DCHL share capital does not commit DCC or Aurora Energy Limited to future debt levels – it enables future debt to be available for the planned capital expenditure programmes.

OPTIONS

10 No options are provided – the increase in uncalled capital gives effect to the forecast group debt as set out in the 2025/2026 Statement of Intent for DCHL as agreed to by Council at this meeting.

NEXT STEPS

11 If approved officers will begin the process of increasing DCHL’s share capital.

12 The level of uncalled capital will be reviewed again in July 2027, following adoption of the next 10 year plan.

Signatories

Author:

Hayden McAuliffe - Financial Services Manager

Authoriser:

Carolyn Allan - Chief Financial Officer

Sandy Graham - Chief Executive Officer

Attachments

There are no attachments for this report.

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision, by enabling the continuation of DCC’s and Aurora’s respective capital programmes promotes the: social, economic and environmental well-being of communities in the present and for the future.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	☐	☐	☐
Economic Development Strategy	☐	☐	☐
Environment Strategy	☐	☐	☐
Arts and Culture Strategy	☐	☐	☐
3 Waters Strategy	☐	☐	☐
Future Development Strategy	☐	☐	☐
Integrated Transport Strategy	☐	☐	☐
Parks and Recreation Strategy	☐	☐	☐
Other strategic projects/policies/plans	☐	☐	☐

This recommendation enables DCC to pursue its approved strategic projects and plans. This recommendation does not change approved strategic projects or plans.

Māori Impact Statement

Sustainability

There are no implications for sustainability.

Zero carbon

There are no implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This recommendation is consistent with the 9 Year Plan 2025-34.

Financial considerations

The recommended option will incur relatively small legal costs. The cost of not proceeding with the recommended option could have significant alternative costs and/or non delivery of planned capital programmes of DCC and Aurora Energy Limited.

Significance

This recommended option, being one to ‘enable’ already planned and publicised work, is considered low in terms of Council’s Significance and Engagement Policy.

Engagement – external

Following Council approval, external engagement will be undertaken with investors.

Engagement - internal

There has been no internal engagement.

Risks: Legal / Health and Safety etc.

The recommendation will enable Aurora Energy Limited to continue its planned capital programme. Any disruption to the planned capital programme could have significant risks for the company and possibly DCHL and DCC. Potential risk areas include health/safety, environmental, reputational and legal.

Conflict of Interest

No conflicts of interest have been identified.

Community Boards

No direct implications for Community Boards have been identified.

Mayor	Mayor Jules Radich
Deputy Mayor	Cr Cherry Lucas
Members	Cr Bill Acklin	Cr Sophie Barker
	Cr David Benson-Pope	Cr Christine Garey
	Cr Kevin Gilbert	Cr Carmen Houlahan
	Cr Marie Laufiso	Cr Mandy Mayhem
	Cr Jim O'Malley	Cr Lee Vandervis
	Cr Steve Walker	Cr Brent Weatherall
	Cr Andrew Whiley