Agenda of Council - Wednesday, 4 March 2026

Council

4 March 2026

Reports

CEO Overview Report - Annual Plan 2026/27

Department: Civic and Finance

EXECUTIVE SUMMARY

1 This report provides an overview of the budgets to be included in the draft Annual Plan 2026/27 (the draft Plan). The draft Plan for 2026/27 is an update of year two of the 9 year plan 2025-34 (the 9 year plan).

2 This report largely relates to operating and capital budgets for activities other than 3 Waters (non-waters activities). Note that 3 Waters budgets are the subject of a separate report.

3 This report highlights the budget challenges the DCC faces, with the economy emerging from a protracted recession, high inflation in recent years, and a programme of significant legislative reform from central government. Savings have been found across the organisation to assist in offsetting the increased in capital costs of depreciation.

4 The proposed ‘non-waters’ rates increase is 6.9% for 2026/27, which is lower than the 8.5% provided for in year two of the 9 year plan.

5 The proposed 3 Waters rates increase is 16.7% for 2026/27, which is higher than the 15.0% provided for in year two of the 9 year plan and in the Water Services Delivery Plan.

6 Staff have worked across all departments to identify savings, reprioritise activities, and refine budgets without compromising levels of service. Additionally, work to scale the capital programme to a more deliverable level is expected to further assist in moderating the rates increase, as it will reduce borrowing, debt servicing, and future depreciation costs.

RECOMMENDATIONS

That the Council:

a) Adopts the draft 2026/27 operating budgets for the purpose of community engagement as shown/amended at Attachments A-H.

b) Notes that any resolution made during this meeting related to the Annual Plan 2026/27 reports may be subject to further discussions and decision by the meeting.

BACKGROUND

7 Councils across the country, including the DCC, face significant financial and infrastructure challenges. Contributing factors include a recent period of high inflation and increased costs, an extended recession with increased unemployment, and significant legislative reform including rates capping, all of which mean that rates increases have become less affordable to the community.

8 The Local Government Act 2002 (the Act) provides that Council must prepare and adopt an annual plan for each financial year. Section 95 (5) sets out the purpose of an annual plan as follows:

The purpose of an annual plan is to –

(a) Contain the proposed annual budget and funding impact statement for the year to which the annual plan relates; and

(b) Identify any variation from the financial statements and funding impact statement included in the local authority’s long-term plan in respect of the year; and

(c) Provide integrated decision making and co-ordination of the resources of the local authority; and

(d) Contribute to the accountability of the local authority to the community.

9 The draft Plan for 2026/27 is an update of year two of the 9 year plan. Budgets for the 2026/27 year have been reviewed and budget update reports for each activity of Council have been prepared for consideration at this meeting.

Financial Strategy

10 Council’s Financial Strategy is included as part of the 9 year plan, and is usually updated every three years. It provides guidance for considering proposals for funding and expenditure, and communicates the overall effects of proposals on services, rates, debt and investments.

11 The Financial Strategy includes limits on annual rates increases, debt levels and includes two balanced budget tests.

12 The limits on annual rates increases are:

Years 1 – 3	no more than 12% per annum
Year 4	no more than 8% per annum
Years 5 – 6	no more than 7% per annum
Years 7 – 9	no more than 6% per annum

13 The Financial Strategy debt limit is a variable amount that is calculated as a percentage of revenue. The gross debt limit is set as 250% of revenue (excluding investment property gains). In addition to this limit, other debt limits which Council must comply with include:

a) All relevant financial covenants/ratios of the Local Government Funding Agency (LGFA).

b) Dunedin City Holdings Limited (DCHL) has $1.9 billion of uncalled capital with the Council. This is represented by shares, which have been issued by DCHL to the Council, that are currently unpaid. Dunedin City Treasury Limited (DCTL) is permitted to issue debt securities up to the amount of uncalled capital of $1.9 billion.

c) There is a self-imposed gross debt limit for water services debt set at 400% of water services revenue.

14 The two balanced budget tests included in the Financial Strategy are:

a) Balanced budget

Forecast total operating surplus (after tax) – in Year 1 of the plan we have a balanced budget, and from Year 2, we have an operating surplus (after tax) each year.

b) Everyday costs funded by everyday revenue

Council aims to ensure a balanced budget, meaning everyday costs of running the city can be funded from the everyday revenue (excluding any non-recurring / non-cash items) consistently by the end of Year 3.

DISCUSSION

Approach to the Annual Plan

15 Given that there was a robust process to develop the 9 Year Plan, the draft Plan largely maintains financial settings and priorities for 2026/27 that were previously agreed by Council.

16 Staff have worked hard to absorb cost increases by finding efficiencies while maintaining the current Levels of Service, and savings have been made in areas where costs are controllable. However, some of the cost increases being experienced are outside of the control of Council, e.g., asset revaluation impacting depreciation costs, interest rates movement, increasing maintenance, electricity and gas costs.

17 Central government’s proposal to introduce rates capping legislation represents a significant shift. In response to this, work will be required to rationalise expenditure, improve efficiency, and maximise revenue opportunities. This work is underway and will be part of the 10 year plan process, in line with the direction from government that they did not expect amendments to long term plans in response to their rates capping initiative.

18 The draft Plan incorporates cost containment measures, including a Council-wide reduction in consultancy spending. This early step will be built on as part of the 10 Year Plan 2027-37, where a range of options to address rates capping will be explored.

Significant forecasting assumptions

19 Section 4 of the 9 year plan 2025-34 sets out a number of Significant Forecasting Assumptions, which have been used in the development of the draft Plan. Assumptions relating to inflation and interest rates have been updated for the draft budgets.

20 Key assumptions included in the preparation of the draft budget will be further updated in May 2026. This will include but not be limited to:

a) Interest costs

b) Forecast opening debt position as at 30 June 2026

c) Rates on DCC owned properties

d) Depreciation, based on asset completion as at 30 June 2025 and capital spend.

e) The impacts of inflation

f) The level of grant funding from NZTA Waka Kotahi

Draft operating budget

21 The draft operating budget for 2026/27 provides for the day-to-day running of all the activities and services the DCC provides, such as core water and roading infrastructure, waste management, parks, pools, libraries, galleries and museums.

22 The draft budget includes operating expenditure of $477.221 million (refer to Attachments A-H).

23 The total ‘non-waters’ operating budget is $343.304 million. The rates increase relating to non-water activities is 6.9%, which is lower than the rates increase of 8.5% forecast in the 9 year plan.

a) The biggest areas of increase in operating budgets is in Roading and Footpaths with an increase of $3.050 million (4.5%), City Properties with an increase of $2.207 million (4.4%) and Community Recreation with an increase of $1.910 million (4.2%).

b) Each of the groups of activities have updated year two of their draft operating budget as provided for in the 9 year plan. The key changes in funding sources and expected costs of delivery are discussed in the group operating budget reports.

24 Controllable expenses have been reviewed, and the draft budgets demonstrate that savings have been made in many of the group activities.

Revenue

Rates

25 The draft operating budget for 2026/27 shows overall rates revenue increasing from $264.596 million to $292.392 million, an increase of $27.796 million (10.5%). This is lower than the forecast rate increase of 10.9% provided for in the 9 year plan.

a) ‘Non-waters’ rates revenue has increased from $166.700 million to $178.123 million, an increase of $11.423 million (6.9%). This incorporates an increase for stadium debt repayment; without this, the rates revenue increase would have been 6.1%. The 6.9% rates increase is lower than the forecast rate increase of 8.5% provided for in the 9 year plan.

b) 3 Waters rates revenue has increased from $97.896 million to $114.270 million, an increase of $16.374 million (16.7%). This is higher than the rates increase of 15.0% forecast in the 9 year plan and Water Services Delivery Plan (WSDP).

26 Table 1 provides a summary of the rates income in the draft 2026/27 operating budget compared to the 9 year plan.

Rates Income	2025/26 LTP Budget $000	2026/27 LTP Budget $000	2026/27 Draft Budget $000	Draft Budget vs Yr 2 9YP $000
Non-waters	166,700	180,830	176,873	(3,957)
Additional for stadium	-	-	1,250	1,250
Total non-waters	166,700	180,830	178,123	(2,707)
3 Waters	97,896	112,606	114,270	1,664
Total Rates	264,596	293,436	292,393	(1,043)

Table 1: Comparison of 9 year plan and Annual Plan rates income

External revenue

27 External revenue has increased from $100.000 million to $102.532 million, an increase of $2.532 million (2.5%).

a) Non-waters external revenue has increased from $91.252 million to $92.767 million, an increase of $1.515 million (1.7%). The primary driver is an increase of $1.361 million in City Properties as a result of increases in residential rental ($518k), commercial rental ($646k), and recoveries ($255k).

b) 3 Waters external revenue has increased from $8.748 million to $9.765 million, an increase of $1.017 million (11.6%), mainly attributed to increased user charges (fees and charges), which include a 15% increase in water sales (commercial water usage).

28 Fees and charges are discussed separately in the group budget reports. Some fees have increased in line with inflation, and others have increases to better reflect the cost of delivering the service.

29 There are some variances with the Revenue and Financing Policy, and these are highlighted in a separate report. A full review of the policy will occur as part of the development of the 10 year plan 2027-37.

Grants

30 Non-waters grants revenue has decreased from $35.529 million to $30.145 million, a decrease of $5.385 million (15.2%). This includes:

· Operating grants revenue decrease from $13.128 million to $12.314 million, a decrease of $814k (6.2%), mainly due to a reduction in Better Off Funding (financial support for infrastructure provided by central government). This is offset by an increase in Transport of $724k (6.9%), driven by charge out rates for staff cost recoveries.

· Capital grants revenue decrease from $22.402 million to $18.205 million, a decrease of $4.197 million (20.4%) in Transport. This reflects a reduction in co-funding towards the capital expenditure programme, mainly attributed to the Shaping Future Dunedin programme and the Peninsula Connection, as well as emergency works funding from the 2025/26 flood event no longer being applicable.

Expenditure

Personnel costs

31 The budget for the current financial year provided for 881.2 full time equivalent (FTE) staff (including 3 Waters). As previously reported, this incorporated a reduction in FTE, reflecting the number of vacancies held, including some long-term vacant roles of 61.7 FTE (including 3 Waters). The quantum of savings achieved through this process is around $6 million. This work has been underway for the last two years and it should be noted that personnel costs in the current financial year are tracking favourably. Work to ensure the organisational structures align to current budgets is progressing and should be finalised by 30 June 2026.

32 The draft budget provides a general placeholder increase but this is subject to ongoing union bargaining. It is also considered in detail in a separate confidential report to this meeting. The draft budget incorporates scheduled changes to salaries and superannuation as well as an increase in the living wage.

33 Personnel costs have increased from $88.076 million to $91.433 million, an increase of $3.357 million (3.8%). This includes an FTE staff budget of 879.9.

a) Non-waters personnel costs have increased from $76.292 million to $79.043 million, an increase of $2.751 million (3.6%). This includes a net reduction of 3.1 FTE compared to the current budget.

Operations and maintenance costs

34 Operations and maintenance costs have increased from $95.571 million to $97.573 million, an increase of $2.002 million (2.1%).

a) Non-waters operations and maintenance costs have increased from $77.932 million to $80.051 million, an increase of $2.119 million (2.7%). The main changes are:

· City Properties: an increase of $1.037 million (13.2%), primarily reflecting higher reactive maintenance costs across the property portfolio, together with cost increases arising from the retendering of major grounds maintenance contracts.

· Community Recreation: an increase of $879k (6.2%), primarily due to contractual increases.

· Vibrant Economy: an increase of $1.907 million (64.4%), due to reclassification of expenditure items from other expense categories, the approved Festival and Events Plan and an additional Matariki event.

· Resilient City: an increase of $403k (67.6%), due to reclassification of expenditure items from other expense categories.

· Waste Minimisation: a decrease of by $1.864 million (8.4%), primarily due to a reduction in monitoring costs at the Smooth Hill landfill site and a reduction in ETS costs due to lower global carbon credit costs.

· Governance and Support Services: a decrease of by $504k (6.0%), primarily due to 2025 elections costs being removed.

Occupancy costs

35 Non-waters occupancy and property-related costs, such as rates, insurance and fuel, have increased from $22.291 million to $24.285 million, an increase of $1.994 million (8.9%). The main changes are:

· City Properties: an increase of $1.438 million (11.6%), primarily reflecting an increase in rates ($602k), energy costs ($495k) and an allowance for increased cleaning and insurance. Some of the increase in electricity is recoverable ($369k).

· Community Recreation: an increase of $464k (7.5%) mainly due to higher energy costs and rates expense.

Consumables and general costs

36 Across the organisation, staff have focussed on controlling expenditure, including a Council‑wide initiative to reduce consultancy budgets by $1 million. Targeted savings have also been made in travel and accommodation budgets. However, these savings have been offset by increases in compliance‑related activities and reclassification of costs.

37 Non-waters consumables and general costs have increased from $25.342 million to $26.119 million, an increase of $767k (3.0%). The main changes are due to:

· Governance and Support Services: an increase of $1.267 million (12.0%), mainly due to software licence fees, audit fees and councillor remuneration.

· Resilient City: a decrease of $390k (24.8%), primarily due to a reduction in consultancy costs and a reclassification of expenditure to operations and maintenance costs.

38 3 Waters consumables and general costs have decreased by $1.123 million (28.5%), primarily due to the completion of approved projects and available funding under the Better Off Funding programme and a reduction in consultancy costs.

Grants and subsidies expenditure

39 Non-waters grants and subsidies expenditure has decreased from $12.512 million to $10.923 million, a decrease of $1.589 million (12.7%). The main changes are:

· Vibrant Economy: a decrease of $1.798 million (62.8%), mainly due to a reclassification of $1.645 million to operations and maintenance costs and a reduction to the Major Events grant.

· This is offset by increases for the Centre of Digital Excellence (CODE), Predator Free and the Otago Museum levy, all of which are consistent with decisions made as part of the 9 year plan.

Depreciation costs

40 Non-waters depreciation expense has increased from $61.708 million to $62.476 million, an increase of $768k (1.2%), reflecting an increase in asset valuation in Roading and Footpaths and the capital expenditure programme.

41 A budget update to Council will be provided in May 2026, when the current year capital spend will be more certain, allowing for a more accurate depreciation and interest forecast for the 2026/27 draft budget.

Interest costs

42 Non-waters interest expense has increased from $17.692 million to $20.013 million, an increase of $2.321 million (13.1%), reflecting an increase in debt funding required to support the planned capital expenditure programme and an increase in interest rate.

43 The 9 year plan had an interest rate assumption of 4.15% for the 2026/27 year, increased from 4.00% in the 2025/26 year. For the purposes of preparing the draft budget, an assumption has been made that the borrowing rate for the 2026/27 year will be 4.11%.

Draft financial statements

44 The Draft Forecast Financial Statements at Attachment A-H show that by 30 June 2027, the estimated debt level will be $829 million, which is 190% of revenue. The debt limit provided for in the current Financial Strategy is 250% of revenue (less investment property gains). This is an increase in debt of $104 million from 2025/26 (i.e., year 1 of the 9 year plan).

Compliance with Financial Strategy

45 Attachment I provides a schedule showing compliance against the Financial Strategy limits. Attachment J provides a chart illustrating actual and forecast group debt.

46 The forecast rate increases and forecast debt levels in these draft budgets are within the Financial Strategy limits, including other debt limits.

47 The balanced budget tests, for non-waters activities, in these draft budgets is achieved. As forecast in the 9 year plan and WSDP, the balanced budget tests for 3 Waters won’t be achieved until the 2027/28 year.

OPTIONS

48 There are no options.

Signatories

Author:

Janet Fraser - Corporate Planner

Hayden McAuliffe - Financial Services Manager

Authoriser:

Carolyn Allan - Chief Financial Officer

Sandy Graham - Chief Executive

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/27 - Whole of Council	25
⇩b	Draft Operating Budget 2026/27 - Waters	26
⇩c	Draft Operating Budget 2026/27 - Non-Waters	27
⇩d	Summary of Rates 2026/27	28
⇩e	Funding Impact Statement 2026/27 - Whole of Council	29
⇩f	Funding Impact Statement 2026/27 - Non-Waters	30
⇩g	Draft Statement of Financial Position 2026/27	31
⇩h	Draft Statement of Cashflows 2026/27	32
⇩i	Financial Strategy Limits – 2026-27 Draft Annual Plan	33
⇩j	Actual and Forecast Debt – DCC and Group	34

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 Activity Groups contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Council budgets impact broadly across all Dunedin communities including Māori. The adoption of Te Taki Haruru – Māori Strategic Framework signals Council’s commitment to mana whenua and to its obligations under the Treaty of Waitangi. Mana whenua and Māori will have an opportunity to engage on the Annual Plan 2026/27.

Sustainability

The Annual Plan 2026/27 is not proposing significant changes to that provided for in the 9 year plan 2025-34. Major issues and implications for sustainability are discussed in the Infrastructure Strategy and financial resilience is discussed in the Financial Strategy of the current 9 year plan.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budget information for inclusion in the draft 2026/27 Annual Plan.

Financial considerations

Financial considerations are detailed in the report.

Significance

As part of the development of the 9 year plan 2025-34, budgets were consulted on. Variations to those budgets are discussed in this report and are considered to be of low significance in relation to Council’s Significance and Engagement Policy.

Engagement – external

External consultation will be undertaken with the community.

Engagement - internal

Staff from across Council have been involved in the development of the draft budgets and reports.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have the opportunity to submit and be heard on the draft 2026/27 Annual Plan.

Council

4 March 2026

3 Waters - Draft Operating and Capital Expenditure Budgets 2026/27

Department: 3 Waters

EXECUTIVE SUMMARY

1 This report provides an overview of the draft operating and capital expenditure budgets for the Annual Plan 2026/27 for the 3 Waters Group. The following activities are provided for:

· Water Supply

· Wastewater

· Stormwater

2 The following draft budget schedules are provided:

a) A draft operating expenditure budget is shown at Attachment A.

b) A draft funding impact statement is shown at Attachment B.

c) A schedule of proposed fees and charges is shown at Attachment C.

d) A draft capital expenditure budget is shown at Attachment D.

3 This report asks the Council to adopt the draft operating and capital expenditure budgets for the purposes of developing the Annual Plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27:

i) The draft 2026/27 operating budget for the 3 Waters Group as shown/amended at Attachments A and B.

ii) The draft 2026/27 fees and charges schedules for the 3 Waters Group as shown/amended at Attachment C.

iii) The draft 2026/27 capital expenditure budget for the 3 Waters Group as shown/amended at Attachments D.

LOCAL WATER DONE WELL REFORM

4 As part of the government’s water services reform programme, Local Water Done Well, the Council prepared a Water Services Delivery Plan (WSDP), which sets out how water services will be delivered in a way that meets regulatory requirements. The DCC must give effect to the WSDP, and ensure that water services are delivered in a financially sustainable manner by 30 June 2028 at the latest.

5 The Local Government (Water Services) Act 2025 provides a comprehensive new planning and reporting framework for water services. This framework was designed for new water services delivery arrangements and to support and enable other aspects of the legislation, such as the objectives and financial principles that apply to water service providers (including financial ring-fencing requirements and economic regulation regime overseen by the Commerce Commission).

6 As part of the implementation plan in the WSDP, staff are currently working on a review of internal charging to ensure ringfencing requirements are met.

7 In anticipation of the new accountability framework, the draft 2026/27 operating and expenditure budgets for 3 Waters have been detailed in this report, separate from budget reports of non-water activities.

OPERATING BUDGET

8 To fully fund operating expenditure and achieve a balanced budget (excluding development contribution revenue and vested assets), consecutive rates increases of 15% in the 2025/26 to 2027/28 years were included for 3 Waters in the 9 year plan 2025-34 (9YP) and Water Services Delivery Plan (WSDP). The 3 Waters operating budget is projected to be fully funded by year 3 (2027/28).

9 The 2026/27 draft operating budget is $133.917 million. This is an increase of $6.320 million (5.0%) from the 2025/26 year, with the primary drivers being increases in depreciation ($4.608 million) and interest costs ($2.044 million). The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

10 Rates revenue increased from $97.896 million to $114.270 million, an increase of $16.374 million (16.7%). The 9YP and WDSP projected a 15% increase, however, due to the increase in depreciation based on the asset valuation as at 30 June 2025, a further 1.7% increase ($1.641 million) has been made. This represents around half of the additional depreciation funding required to achieve a balanced budget by the 2027/28 financial year.

11 As discussed in paragraph 8, the 3 Waters operating budget was projected to be fully funded by year 3 (2027/28). The net deficit in 2025/26 (excluding development contributions, vested assets and external subsidies for capital projects) was $18.927 million. The net deficit in this draft budget is $9.478 million which has reduced by $9.449 million.

External revenue

12 External revenue increased from $8.748 million to $9.765 million, an increase of $1.017 million (11.6%). This is mainly attributed to user charges (fees and charges), which include a 15% increase in water sales (commercial water usage), representing $977k of the increase. Charges for trade waste, backflow prevention and tankered waste have all increased to account for increases in costs.

Internal revenue

13 Internal revenue decreased from $1.988 million to $350k, a decrease of $1.638 million (82.4%). This is due to reduced Better Off Funding, as projects are in the final year of funding, and is aligned to the programme.

14 The remaining $350k of Better Off Funding relates to work on growth, infrastructure assessments and Local Water Done Well planning and ringfencing.

Expenditure

Personnel costs

15 Personnel costs have increased from $11.784 million to $12.390 million, an increase of $606k (5.1%). This reflects a general salary increase along with an additional $250k provision for the implementation of Local Water Done Well, to respond to new economic regulation and reporting requirements.

Operations and maintenance costs

16 Operations and maintenance costs have decreased from $17.639 million to $17.522 million, a decrease of by $117k (0.7%), with changes outlined below:

a) The network maintenance contract overhead costs reduce by $131k (9.1%) due to increased capital project spend. This means that more of the contract overheads can be attributed to capital projects.

b) Plant maintenance and operational costs have decreased by $126k from $8.605 million to $8.479 million.

i) Maintenance costs have reduced by $645k, reflecting actual costs of reactive maintenance following the recent increased planned maintenance programme,

ii) However, offsetting the above reduction are increases in sludge removal of $150k (60.1%) and chemical/laboratory costs of $369k (8.8%). These reductions are due to the current wastewater treatment plant incinerator processes and chemical contract price increases respectively.

c) Dam safety contracted services have increased by $54k (43.3%) relating to required reviews and water quality investigations.

d) An allowance of $100k has been provided for the demolition of dilapidated and redundant infrastructure.

Occupancy costs

17 Occupancy costs have increased from $15.471 million to $15.608 million, an increase of $137k (0.9%), due to:

a) Rates expenditure increased by $234k (3.0%). Please note that this assumes the introduction of a new rating differential for water utility general rates. This proposed change is outlined in the Rating Method report included on this agenda. If this option isn’t approved by Council, rates expenditure will need to be increased by $5.291 million.

b) Electricity and water charges have increased by $308k (7.8%) resulting from increases to unit charges.

c) Insurance costs have decreased by $367k (12.8%) reflecting a softening in the insurance market relating to the underground pipe network.

Consumables and general costs

18 Consumables and general costs have decreased from $3.938 million to $2.815 million, a decrease of $1.123 million (28.5%), primarily due to:

a) Consultancy costs under the Better Off Funding programme have decreased by $1.305 million (81.5%) from $1.601 million to $0.296 million, due to the completion of approved projects and available funding. The funding programme will finish on 30 June 2027.

b) Software licence fees have an increase of $148k (42.8%) reflecting additional connection and reading costs for smart water meters.

Internal charges

19 Internal charges have increased from $5.337 million to $5.502 million, an increase of $165k (3.1%):

a) While there were savings in internal sludge disposal costs of $264k, this was offset by increases to landfill disposal fees of $168k which is due to the interplay between incinerator usage, the lime process and ash production at Tahuna Wastewater Treatment Plant.

b) Administrative charges increased by $192k, representing an increase to the corporate overhead charges which have moved in line with CPI and additional Finance costs to cover ring fencing requirements.

Depreciation costs

20 Depreciation has increased from $62.007 million to $66.615 million, an increase of $4.608 million (7.4%). This increase is driven by the 30 June 2025 valuation of the water network, increasing the value of the water network by $335.121 million.

21 The result of the increased value of the water network is more depreciation beyond what was projected in year 2 of the 9YP and the WSDP. As a result, depreciation expense is $3.702 million higher than forecast.

22 To ensure that the Council continues to work towards 3 Waters being fully funded by 2027/28 (year 3 of the 9YP), around half of the additional depreciation has been funded in these draft budgets, which has increased the rate increase for 3 Waters to 16.7%.

Interest costs

23 Interest has increased from $11.421 million to $13.465 million, an increase of $2.044 million (17.9%). This is mainly due to increased debt resulting from the capital programme and the change in interest rate.

FEES AND CHARGES

24 Fees and charges for 3 Waters increases are outlined below:

a) Central water scheme tariffs (commercial water usage) has increased by 15% or $0.02 for the supply of bulk raw water per cubic meter, and $0.38 for the supply of treated water per cubic meter to reflect increased costs of distributing and treating water. This increase aligns with increases to other water supply charges.

b) Tankered waste charges have been separated into ‘septage waste’, and ‘food, oil & grease waste’, with the latter increasing by 91.7% to better reflect actual costs for treatment and disposal.

c) City-wide unit rates for trade waste

I. Volume per cubic metre (-6%) -$0.01 decrease to reflect costs and anticipated volume.

II. BOD5 per kg (15.6%) $0.04 increase to reflect costs and anticipated volume.

III. NFR/TSS per kg (13.6%) $0.06 increase to reflect costs and anticipated volume.

d) All other fee increases are driven by increased costs and have been adjusted in alignment with the local government index increase (4.2%).

CAPITAL BUDGET

25 The 3 Waters draft 2026/27 capital expenditure budget is $92.711 million. The overall budget remains the same as year two of the 9YP and WSDP.

26 However, the draft budget has reprofiled some expenditure, reflecting the need to prioritise renewal of existing assets. These changes include:

· The draft renewals budget has increased from $62.057 million to $74.594 million, an increase of $12.537 million (20.2%).

· The draft new capital budget has reduced from $28.639 million to $15.509 million, a decrease of $13.130 million (45.8%).

· The draft growth budget has increased from $1.421 million to $2.014 million, an increase of $593k (41.7%).

27 Table 1 provides a summary of the changes to the draft 3 Waters capital expenditure budget for the 2026/27 year.

Capital Expenditure	2026/27 Annual Plan Draft Budget	Year 2 of 9YP and WSDP $’000s	Increase (Decrease) $’000s
Renewals supporting Growth	635	635	-
Renewals	73,959	61,422	12,537
Total Renewals	74,594	62,057	12,537
New Capital for Growth	2,014	1,421	593
New Capital	15,509	28,639	(13,130)
Total New Capital	17,523	30,060	(12,537)
Total 3 Waters Capital Expenditure	92,117	92,117	-

Table 1: Summary of 3 Waters 2026/27 draft capital expenditure

28 Network renewal programmes are established and delivering efficiently, therefore these renewals are being accelerated, where possible, to help manage demand in future years.

29 There is a high degree of confidence that the overall capital budget for 2026/27 will be fully delivered, as the programme is managed as a body of work rather than a collection of isolated projects. While some individual projects may experience timing delays, this is not expected to affect overall expenditure, as activities will be re-sequenced as required. The scale and volume of work mean that shifts in project timing can be absorbed within the wider programme, ensuring the full budget is deployed.

30 Table 2 provides a summary of the draft capital expenditure programme for each of the three areas. Further explanation of the changes is then provided in each section below.

Activity Group	Capital Expenditure $’000s	2026/27 Annual Plan Draft Budget	Year 2 of 9YP and WSDP	Increase (Decrease)
Stormwater	Growth	-	-	-
	New Capital	1,975	2,175	(200)
	Renewal	5,159	5,810	(651)
	Stormwater Totals	7,134	7,985	(851)
Wastewater	Growth	814	814	-
	New Capital	6,595	11,431	(4,836)
	Renewal	25,945	20,477	5,468
	Wastewater Totals	33,354	32,722	632
Water Supply	Growth	1,200	607	593
	New Capital	6,939	15,033	(8,094)
	Renewal	43,490	35,770	7,720
	Water Supply Totals	51,629	51,410	219
	Grand Totals	92,117	92,117	-

Table 2: Summary of 3 Waters 2026/27 draft capital expenditure by activity

Stormwater

31 The draft budget for Stormwater has decreased from $7.985 million to $7.134 million, a decrease of $851k (10.7%). This includes:

a) A decrease in renewals of $651k due to completion of the Mosgiel Stormwater Pumpstations and Network in the current year and a reduction in the extent of work required in the North East Valley Parks Area ($1.156 million), though these decreases were partially offset by an increase to the Kaikorai Valley Hills project of $1.489 million, due to the acceleration of delivery through long term renewals programmes.

b) A decrease in new capital of $200k due to completion of the Mosgiel Stormwater Upgrade in the current year ($625k) offset by network resilience and efficiency improvements ($625k) with minor timing changes on a number of other projects.

Wastewater

32 The draft budget for Wastewater has increased from $32.722 million to $33.354 million, an increase of $632k (1.9%). This includes:

a) An increase in renewals of $5.468 million (26.7%) from $20.477 million to $25.581 million due to increases in the Kaikorai Valley Hills budget ($2.981 million) and the Reactive Network budget, though these are partially offset by a reduction in the Programmed Network budget ($482k). These changes are due to the acceleration of delivery through long term renewals programmes.

b) A decrease in new capital of $4.836 million (42.3%) from $11.431 million to $6.595 million due to reductions in the Metro Wastewater Treatment Plant Resilience ($2.648 million) and the Musselburgh to Tahuna Link budget ($450k), where the anticipated extent of work required has reduced. Bioresources Facility ($500k) and Rural Wastewater schemes ($1.350 million) have reduced to re-phasing.

Water Supply

33 The draft budget for Water Supply has increased from $51.410 million to $51.629 million, an increase of $219k (0.4%). This includes:

a) An increase in renewals of $7.720 million (21.6%) from $35.770 million to $43.490 million due to the acceleration of Air Valve renewals ($300k) and Commercial Smartmeters ($1.855 million), which was previously accounted for in the Water Efficiency budget line, as well as acceleration of delivery through long term renewals programmes including the Kaikorai Valley Hills budget ($442k), North East Valley Parks Area budget ($841k), Port Chalmers Water Supply and Water Plant renewals ($5.551 million). The budget for Reactive Network Renewals ($343k) has also increased. These increases are partially offset by budget reductions due to delivery timing of Rotary Park Water Main, Toby Replacement, Water Network Renewals, and Minor Plant Renewals.

b) A decrease in new capital of $8.094 million (53.8%) from $15.033 million to $6.939 million due to reductions in Water Efficiency ($2.947 million) programme with the budget transferred to Commercial Smartmeters, Reactive Network Improvements ($400k), and Water Supply Resilience ($1.000 million). Plant Condition Assessment budget has decreased $4.051 million as a result of this work being completed within the renewals programme.

Signatories

Author:	John McAndrew - Head of 3 Waters
Authoriser:	David Ward - General Manager, 3 Waters, Property and Urban Development

Attachments

	Title	Page
⇩a	2026/27 Draft Waters Operating Budget	45
⇩b	2026/27 Draft Waters Funding Impact Statement	46
⇩c	2026/27 Draft Waters Fees and Charges	47
⇩d	2026/27 Draft Waters Capital Expenditure Programme	49

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 3 Waters Group activities primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Council budgets impact broadly across all Dunedin communities, including Māori. The adoption of Te Taki Haruru – Māori Strategic Framework signals Council’s commitment to mana whenua and to its obligations under the Treaty of Waitangi. Mana whenua and matāwaka will have the opportunity to engage in the Annual Plan 2026/27 consultation process.

Sustainability

The Annual Plan 2026/27 is not proposing any changes to that provided for in the 9 year plan 2025-34. Major issues and implications for sustainability are discussed in the Infrastructure Strategy and financial resilience is discussed in the Financial Strategy of the current 9 year plan 2025-34.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the 3 Waters Group for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

The 9 year plan 2025-34 budgets were considered significant in terms of the Council’s Significance and Engagement Policy, and were consulted on. Variations to those budgets are discussed in this report. The draft budgets will be included in the Annual Plan 2026/27 and will be consulted on.

Engagement – external

There has been no external engagement in developing the draft budgets for the 3 Waters Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

Draft Capital Budget 2026/27

Department: Civic and Finance

EXECUTIVE SUMMARY

1 This report seeks approval of the draft 2026/27 capital budget (draft budget) for inclusion in the draft Annual Plan 2026/27 (the draft Plan).

2 The draft Plan is an update to year two of the 9 Year Plan 2025-34 (the 9 Year Plan). The draft budget for 2026/27 is $239.915 million, compared to $230.510 million provided for in the 9 Year Plan, an increase of $9.405 million (4.1%).

3 Councils across New Zealand, including the DCC, face increasing financial and infrastructure pressures. These are driven by sustained cost escalation, economic conditions, and extensive legislative reform from central government, including rates capping. These factors place additional challenges and complexity on the capital investment programme, and constrain the affordability of rates for the community.

4 The draft budget represents an ambitious capital programme and was prepared based on information available at a point in time. Several variables remain subject to change, including capital delivery, and interest and depreciation impacts. Parts of the Waste Futures programme carry a higher degree of uncertainty due to the sequencing and timing of work.

5 Work is continuing to refine the draft capital budget, reflecting the progressive strengthening of delivery capacity over recent years. Experience indicates that a capital programme of around $200 million per annum represents a sustainable level of market and organisational capacity. Where the programme exceeds this level, projects will be actively rebalanced or phased to maintain deliverability, value for money, and confidence of delivery.

6 A budget update will be presented to Council in May 2026, providing a clearer picture of current‑year delivery and enabling reduction of the capital programme prior to finalisation of the draft Plan.

7 In addition to prioritising renewals, the draft budget takes into account asset management plans, funding and delivery capacity, legislative obligations, and Zero Carbon targets.

RECOMMENDATIONS

That the Council:

a) Approves the proposed capital expenditure budget for inclusion in the draft Annual Plan 2026/27.

BACKGROUND

8 Projects are allocated between three types of capital expenditure, in accordance with the Local Government Act 2002 (LGA). In practice, many projects are a mixture of two or three of these types. Projects have been categorised into a single type, based on the primary purpose of the proposed expenditure:

a) Renewals: replacement of existing assets once they reach the end of life

b) New Capital: new projects to improve current levels of service

c) Growth: investment in new infrastructure to meet additional demand, including growth.

9 Capital expenditure is funded through:

· Funded depreciation – for renewals

· Debt – for new capital, and any shortfall in funded depreciation for renewals

· NZTA Waka Kotahi grant funding – renewals and new capital for transport projects

· Development contributions – for growth capital

DISCUSSION

10 The draft budget has increased from $230.150 million to $239.915 million, an increase of $9.405 million (4.1%), compared to year two of the 9 Year Plan (see Table 1).

a) The non-waters capital programme has increased from $138.393 million to $147.798 million, an increase of $9.405 million (6.8%).

b) The 3 Waters capital programme of $92.117 million is discussed in a separate 3 Waters report; the Draft Capital Budget report will focus on the ‘non-waters’ capital programme.

11 The draft budget provides for a continuation of the capital programme approved in the 9 Year Plan. Proposed spending is higher than year two of the 9 Year Plan and has taken into consideration timing of work – forecasting progress against the current 2025/26 budget and considering how timing differences may impact the 2026/27 year.

12 Current‑year delivery performance is an important consideration in shaping the 2026/27 capital programme. The 2025/26 capital programme is tracking behind schedule, with several projects experiencing delays for a variety of reasons. These timing variances may result in some work being rephased into 2026/27. Consequently, staff have focused on progressing projects that are already in train.

13 Staff will continue to review timing and deliverability of the capital programme, including by using updated forecasts of current‑year performance. A budget update report will be presented to Council in May 2026, with further adjustments to ensure the 2026/27 programme is achievable. This is likely to result in a reduction of the capital programme to a level around $200 million.

14 More significant changes to the capital programme, including reconsideration of scope, timing, and overall prioritisation, would be considered through the upcoming 10 year plan 2027-37 process.

Draft 2026/27 Capital Expenditure Programme

15 Some capital projects have been rolled over from the 2025/26 year, due to delays or reprioritisation. Rolled over projects include:

a) Parts of the Green Island Resource Recovery Park (GIRRP) due to ground pre-loading requirements; and

b) Parts of the Shaping Future Dunedin budget, including the Albany Street Connection project, due to delays in decision making.

16 Some expenditure planned for 2026/27 has been actively refined to ensure the capital programme remains well aligned with delivery capacity and focused on priority infrastructure outcomes. This has involved optimising the sequencing and timing of lower‑priority work to support an achievable, high‑quality programme. Key adjustments include:

a) refinement of some City Properties expenditure

b) reprioritisation within the Community Recreation (Aquatics) programme

c) rescheduling of selected non‑essential projects to better align with available capacity.

17 Changed levels of capital expenditure will impact several areas of the organisation’s finances. Assumptions have been included in the preparation of the draft operating budget that will be further updated in May 2026. This will include but not be limited to:

a) Interest on borrowings – including allocation of interest cost to each activity group

b) Forecast opening debt position as at 30 June 2026

c) Updated depreciated based on asset completion

d) The level of grant funding from NZTA Waka Kotahi.

18 Table 1 provides a summary of the changes to the capital expenditure budget for the 2026/27 year, by group of activity.

2026/2027 Capital Expenditure Budget $000s	Draft Budget	Year 2 of 9 Year Plan 2025-34	Increase (Decrease)
City Properties	18,946	16,529	2,417
Community Recreation	16,638	25,466	(8,828)
Creative and Cultural Vibrancy	2,458	2,393	65
Governance and Support Services	5,917	5,579	338
Resilient City	405	310	95
Roading and Footpaths	53,535	52,872	663
Waste Minimisation	49,899	35,244	14,655
Non-Waters Expenditure	147,798	138,393	9,405
3 Waters	92,117	92,117	-
Total Expenditure	239,915	230,510	9,405

Table 1: 2026/27 draft capital budget compared with year two of the 9 Year Plan 2025-34

City Properties

19 The City Properties group includes the following activities: Community Property; Holding Property; Housing Portfolio; Investment Property; Operational Property; and Parking Operations. The total draft capital expenditure budget has increased from $16.529 million to $18.946 million, an increase of $2.417 million (14.6%). Key movements include:

a) Community Property reflects a refined focus on priority heritage and asset renewals, with investment directed toward Dunedin Railway Station works while optimising the timing of other renewals.

b) The Housing Portfolio increase of $635k reflects a strengthened renewals programme, including targeted upgrades such as the replacement of single‑glazed windows to improve asset condition and performance.

c) Investment Property expenditure has been reshaped to prioritise urgent, high‑value renewals, enabling efficient delivery of essential works while supporting a sustainable long‑term renewals profile.

d) Operational Property expenditure has increased to support key civic assets and service improvements, including remedial works at the Town Hall, enhancements associated with the Marlow Park Destination Playground, and continued progression of major facility programmes.

e) Parking Operations investment has increased to support asset condition and customer experience, including carpark building resurfacing and continued renewal of parking meters.

Creative and Cultural Vibrancy

20 The Creative and Cultural Vibrancy group includes the following activities: Dunedin Public Art Gallery (DPAG), Dunedin Public Libraries (DPL), Olveston Historic Home (Olveston), and Toitū Otago Settlers Museum (Toitū).

21 The total draft capital expenditure budget has increased from $2.393 million to $2.458 million, an increase of $65k (2.7%) compared to year two of the 9 Year Plan. The increase relates to a $5k allocation to Olveston for minor capital equipment renewals and $60k for Toitū for plant renewals.

Community Recreation

22 The Community Recreation group includes Aquatic Services, Botanic Garden, Cemeteries and Crematorium, and Parks and Reserves. The total draft capital expenditure budget has decreased from $25.466 million to $16.638 million, a decrease of $8.828 million (34.7%) compared to year two of the 9 Year Plan.

23 The Community Recreation draft renewals budget has decreased from $20.009 million to $11.331 million, a decrease of $8.678 million (43.4%). This reduction is primarily due to:

a) Moana Pool Redevelopment project decrease of $6.120 million (41.8%), from $14.625 million to $8.505 million in the 2026/27 year, in order to review investment options as part of the development of the 10 year plan 2027-37.

b) Parks and Recreation decrease of $2.342 million resulting from:

i) The removal or deferral of some greenspace renewals ($361k);

ii) A decrease in playground renewals ($582k), including the removal of the Chingford Park playground renewal;

iii) A decrease in recreation facilities renewals ($1.399 million), including the deferral of the Caledonian Grandstand Lift Replacement project as the asset is not yet at the end of useful life, and a delay in the Mosgiel and Caledonian Gym Heating System Upgrade project while options are being scoped.

24 The Community Recreation draft new capital budget has decreased from $5.457 million to $4.717 million, a decrease of $150k (2.7%), due to reductions in the Cemetery Development Plan ($50k) and Recreation Facilities Improvements ($100k).

Governance and Support Services

25 The Governance and Support Services group includes Business Information Services, Council Communications and Marketing, Customer Services, and Fleet Operations. The total draft capital expenditure budget has increased $338k (6.1%) from $5.579 million to $5.917 million.

26 The Governance and Support Services draft renewals budget has increased from $4.479 million to $4.596 million, an increase of $117k (2.6%). This increase relates to the increased renewals of internal IT and legacy systems.

27 The Governance and Support Services draft new capital budget has increased from $1.100 million to $1.321 million, an increase of by $221k (20.1%), primarily due to the additional of EV charging infrastructure ($250k).

Resilient City

28 The Resilient City group includes City Development, Community Partnerships, and Civil Defence. The total draft capital expenditure budget has increased from $310k to $405k, an increase of $95k (30.6%) compared to year two of the 9 Year Plan. This is due to an increase in renewals in the Civil Defence Plant Equipment budget ($95k) for new generators.

Roading and Footpaths

29 The Roading and Footpaths group total draft capital expenditure budget has increased from $52.872 million to $53.535 million, an increase of $663k (1.3%) compared to year two of the 9 Year Plan.

30 The Roading and Footpaths growth budget relating to the Future Development Strategy is unchanged from year 2 of the 9 Year Plan with an expected spend of $2.476 million.

31 The Roading and Footpaths draft renewals budget has decreased from $33.541 million to $33.209 million, a decrease of $332k (1.0%). The reduction is due to the removal funding for Geobag replacements under the Coastal Plan. The Geobags are not expected to be renewed, unless in response to external factors, such as weather. If that happens, any required work would be treated as an emergency event and funded accordingly. There has been $150k allocated within the operating budget for minor storm-related maintenance and sand maintenance, as part of the Coastal Plan. However, this would not cover a full-scale replacement of the Geobags.

32 The Roading and Footpaths draft new capital budget has increased from $16.855 million to $17.850 million, an increase of $995k (5.9%), due to Shaping Future Dunedin increases, including:

a) Albany Street Connection project (Central City Cycle and Pedestrian Improvements) movement of $1.000 million from 2025/26 to 2026/2027, due to a delayed start.

b) Princes Street Safety Plan budget increase, bringing forward $1.200 million from the 2027/28 year into the 2026/27 year, in order to gain efficiencies from delivering the bulk of this project over a shorter timeframe.

c) Parking Management workstream budget shift of $200k into the 2026/2027 year to cover residual costs associated with delivering the wayfinding element of this work.

33 The Coastal Plan new capital budget also includes a decrease of $1.405 million associated with treating the response to geobag replacement as an emergency.

NZTA Waka Kotahi Funding

34 The funding assumptions for projects included in the Roading and Footpaths draft capital expenditure budget are at Attachment C. Overall, 33.9% of the Roading and Footpaths budget is subsidised by NZTA. This combines a 42.7% subsidy on renewals and a 22.3% subsidy on new capital. There is no subsidy on growth capital expenditure.

35 New capital investments must align with the Government Policy Statement on Transport (GPS). This alignment determines the Funding Assistance Rate (FAR) that NZTA will apply. Renewal works are typically funded at a standard FAR of 51%, though this can vary depending on the GPS. The most significant variation, however, occurs in the co‑funding levels for new capital projects, which may increase or decrease based on how well the investment aligns with the GPS priorities.

36 With the exception of footpaths, the renewal subsidy reflects a 51% subsidy. Footpath funding is capped resulting in an effective subsidy rate of 7%. Subsidised new capital expenditure is 51% except for the Crown Resilience Programme, which is 76%.

37 Under the current assumptions, the table below shows the current draft renewal programme is an investment of $14.188 million.

Co-Funding Scenario $’000s	Renewals Programme
NZTA Waka Kotahi funded renewals	$14,188
DCC funded renewals	$19,021
Total renewals expenditure	$33,209

Table 2: NZTA Co-funding assumption summary for Roading and Footpath renewals

Waste Minimisation

38 The Waste Minimisation group includes Waste and Environmental Solutions, and Waste Futures. The total draft capital expenditure budget for 2026/27 has increased from $35.244 million to $49.899 million, an increase of $14.655 million (41.6%) compared to year two of the 9 Year Plan.

39 The Waste Minimisation draft renewals budget is unchanged from year 2 of the 9 Year Plan with an expected spend of $570k.

40 The Waste Minimisation draft new capital budget has increased from $34.674 million to $49.329 million, an increase of $14.655 million (42.3%). This increase is due to:

a) Waste Futures increase from budget rephasing relating to Material Recovery Facility construction delays ($10.000 million) and delays to components of the Green Island Resource Recovery Park (GIRRP), caused by ground pre-loading requirements prior to further construction ($5.500 million). Table 3 sets out the draft budget for the GIRRP.

b) Waste and Environmental Solutions decrease from the removal of the City Recycling Hubs budget ($145k) due to the inability to secure suitable locations within areas with an identified need, and removal of the Green Island Landfill Southern Valley Leachate Drain budget ($700k) as work is expected to be completed in the current year.

41 New capital expenditure within the Waste Minimisation group generally has a level of uncertainty, primarily resulting from ground pre-loading, which is required for a minimum of four months. The timing of its completion has consequences for the entire Waste Futures programme.

Project $’000	2026/27 Draft Budget	Year 2 of Current 9 Year Plan	Increase (Decrease)
Bulk Waste System General waste sorting facility.	$1,750	$1,750	-
Construction and Demolition Facility Facility to enable diversion of C&D waste alongside bulk waste system.	$2,200	$2,200	-
Glass Facility Glass storage bunkers.	$789	$789	-
Material Recovery Facility Mixed recycling material sorting facility.	$26,950	$16,950	$10,000
Organics Facility Organic collection processing facility.	$6,316	$2,416	$3,900
Resource Recovery Park Precinct Auxiliary buildings and infrastructure.	$5,777	$4,177	$1,600
	$43,782	$28,282	$15,500

Table 3: Draft budgets for Green Island Resource Recovery Park for 2026/27

Capital Spend Scenarios

42 Changing capital expenditure has an effect on the operating budget primarily through depreciation and interest costs.

43 Two scenarios have been provided to give context of the corresponding operational impact of reducing capital expenditure. Changing of capital expenditure impacts multiple financial years. It is assumed that depreciation impacts in the year following the expenditure and only half the interest is realised in the year of expenditure. The rating impact on the 2027/28 year is indicative only as this will change if the 2026/27 rates change.

a) $30 million reduction of capital spend results in a reduction of approximately $617k in 2026/27, followed by approximately $1.833 million in 2027/28.

b) $50 million reduction of capital spend results in a reduction of approximately $1.028 million in 2026/27, followed by approximately $3.055 million in 2027/28.

44 These projected savings have not accounted for overhead costs associated with delivering of new capital projects.

Emissions impact statement

45 The proposed changes to the 2026/27 capital budget will not have a material impact on the achievement of emissions reduction targets at either DCC or Dunedin scales.

OPTIONS

46 There are no options presented but Council may decide to modify the draft capital budget.

NEXT STEPS

47 The decision of Council will be included in the draft Annual Plan 2026/27 for the purposes of community engagement.

48 Following community engagement, staff will bring a budget update report to Council in May 2026.

Signatories

Author:

Janet Fraser - Corporate Planner

Mathew Brockie - Budget Accountant

Hayden McAuliffe - Financial Services Manager

Lara McBride - Assistant Accountant - Compliance

Authoriser:

Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	2026-27 Non-Waters Capital Expenditure Draft Budget Summary	64
⇩b	2026-27 Non-Waters Capital Expenditure Draft Budget Programme Detail	65
⇩c	2026-27 Capital Expenditure Draft Budget Roading and Footpaths Subsidy	72

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 wellbeing of the 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 Groups of Activity contribute to the delivery of all of the objectives and priorities of the strategic framework.

Māori Impact Statement

Sustainability

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides the draft capital budget for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the Groups of Activity.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budget.

Risks: Legal / Health and Safety etc.

There are risks associated with delivery of the capital programme. However, changes set out in this report do not impact previously identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

Roading and Footpaths - Draft Operating Budget 2026/27

Department: Transport

EXECUTIVE SUMMARY

1 This report provides an overview of the draft operating budgets for the Annual Plan 2026/27 for the Roading and Footpaths Group, as shown at Attachment A. A draft funding impact statement is shown at Attachment B. The following activity is provided for:

· Transport

2 A schedule of proposed fees and charges for the 2026/27 year is also presented at Attachment C.

3 This report asks the Council to adopt the draft operating budget and changes for the purposes of developing the Annual Plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27:

i) The draft 2026/27 operating budget for the Roading and Footpaths Group as shown/amended at Attachments A and B.

ii) The draft 2026/27 fees and charges schedules for the Roading and Footpaths Group as shown/amended at Attachment C.

OPERATING BUDGETS

4 The 2026/27 draft operating budget is $70.652 million. This is an increase of $3.050 million (4.5%). The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

5 Rates revenue increased from $38.215 million to $44.071 million, an increase of $5.856 million (15.3%). Rates revenue for the Roading and Footpaths Group includes funding for the Transport activity. It also incorporates the increase in funding required across the whole of council in order to achieve the ‘balanced budget’ test in Council’s Financial Strategy – where everyday costs are funded by everyday revenue.

External revenue

6 External revenue decreased from $1.969 million to $1.713 million, a decrease of $256k (13.0%). This is due to reduced demand and availability for resident parking permits ($11k) and fewer corridor access applications ($41k). The revenue recovery for State Highway streetlight maintenance was removed as this has now been taken in-house by NZTA Waka Kotahi ($190k); previously this was paid by DCC and was 100% recoverable.

7 A new fee for vehicle crossing applications has been established, attracting revenue of $63k, which partially offsets the above decreases.

Grants and subsidies - operating

8 Grants and subsidies (operating) revenue increased from $10.472 million to $11.197 million, an increase of $725k (6.9%). This reflects the operational funded spend for the year, however the change mainly provides for an increase in the current charge out rates for the staff recovery component of the funding claim.

Grants and subsidies - capital

9 Capital subsidies decreased from $22.372 million to $18.175 million, a decrease of $4.197 million (18.8%). Overall, this is due to a decrease in NZTA Waka Kotahi co-funded projects. Capital subsidies are split into new capital and renewal capital.

a) Revenue from new capital subsidies decreased from $6.843 million to $3.987 million, a decrease of $2.856 million (41.7%). This decrease reflects a reduction in co-funding, mainly attributed to the Shaping Future Dunedin programme and the Peninsula Connection.

b) Revenue renewal subsidies decreased from $15.529 million to $14.188 million, a decrease of $1.340 million (8.6%). This decrease is mainly because the additional emergency works funding from 2025/26 flood event no longer applies.

Expenditure

Personnel costs

10 Personnel costs have increased from $4.887 million to $4.989 million, an increase of $102k (2.1%), reflecting a general salary increase.

Operations and maintenance costs

11 Operations and maintenance costs increased from $19.214 million to $19.385 million, an increase of $171k (0.9%). This is primarily due to:

a) An $853k increase for maintenance works reflects contractual cost escalation aligned with inflation and based on NZTA rates.

b) This increase is partially offset by a $205k reduction in State Highway streetlight maintenance as NZTA Waka Kotahi will manage its own streetlight network from 1 May 2026.

c) There has also been a $229k decrease from rationalising Community Road Safety and Coastal budgets to align with NZTA Waka Kotahi co-funding requirements and identified needs.

Occupancy costs

12 Occupancy costs increased from $1.383 million to $1.388 million, an increase of $5k (0.4%). Rent increased by $52k due to the new Mosgiel Park and Ride facility, though this was offset by decreases in electricity costs to be reflective of actual costs.

Depreciation costs

13 Depreciation increased from $32.125 million to $33.833 million, an increase of $1.708 million (5.3%). This increase reflects the 30 June 2025 revaluation, an allowance for the 30 June 2026 revaluation, and the capital expenditure programme. The valuations reflect vested assets, asset condition and contract rates.

Interest costs

14 Interest increased from $6.391 million to $7.463 million, an increase of $1.072 million (16.8%). This is mainly due to increased debt resulting from the capital programme and the change in interest rate.

Emissions impact statement

15 Travel demand management and road safety promotion activity and programmes will be reduced during the 2026/27 year which will impact some Zero Carbon Plan actions but will have minimal impact on achievement of Dunedin’s emissions reduction targets.

FEES AND CHARGES

16 Fees and charges for Roading and Footpaths have largely increased by 3.0%, resulting from increased contract and other operating costs.

17 The penalty fee for unapproved corridor access has increased from $736 to $1,500. This is to encourage compliance.

18 Two new fees are proposed, relating to vehicle crossing requests.

Signatories

Author:	Jeanine Benson - Group Manager Transport
Authoriser:	Scott MacLean - General Manager, City Services

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/27	78
⇩b	Funding Impact Statement - Roading and Footpaths	79
⇩c	Draft 2026/27 fees and charges - Roading and Footpaths	80

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 Roading and Footpaths Group activities primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Sustainability

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the Roading and Footpaths Group for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the Roading and Footpaths Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

Waste Minimisation - Draft Operating Budget 2026/27

Department: Waste and Environmental Solutions

EXECUTIVE SUMMARY

1 This report provides an overview of the draft operating budgets for the Annual Plan 2026/27 for the Waste Minimisation Group, as shown at Attachment A. A draft funding impact statement is shown at Attachment B. The following activities are provided for:

· Landfills

· Refuse, Recycling and Litter

· Waste Strategy

· Waste Support Services

2 A schedule of proposed fees and charges for the 2026/27 year is also presented at Attachment C.

3 This report asks the Council to adopt the draft operating budget for the purposes of developing the Annual Plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27:

i) The draft 2026/27 operating budget for the Waste Minimisation Group as shown/amended at Attachments A and B.

ii) The draft 2026/27 fees and charges schedules for the Waste Minimisation Group as shown/amended at Attachment C.

OPERATING BUDGETS

4 The 2026/27 draft operating budget is $37.572 million. This is a decrease of $127k (0.3%). The following sections explain the revenue and expenditure changes from the previous year.

5 Note, operational funding of approximately $400k for rental of a central resource recovery hub has not been added to the draft budget. This has been deferred and will be considered as part of the 2027-37 10 year plan.

Revenue

Rates

6 Rates revenue increased from $17.331 million to $17.481 million, an increase of $150k (0.9%).

External revenue

7 External revenue decreased from $14.523 million to $14.255 million, a decrease of $268k (1.8%). This is due to:

a) A reduction in the amount of material entering the landfill, with a $276k (2.3%) decrease in commercial and domestic waste revenue at the Green Island landfill.

b) A reduction of $22k (0.9%) in waste levy revenue because of lower than expected tonnage.

c) Partially offsetting the reductions, recycling bin sales and recovery store revenue is expected to increase $24k (94.8%).

d) An increase in fees and charges is offset by reduced volumes of material entering the landfills.

Internal revenue

8 Internal revenue has increased from $5.518 million to $6.245 million, an increase of $727k (13.2%).

9 Internal kerbside recoveries for the cost of transporting mixed recycling material to Timaru has now been incorporated into the budget as a transfer from the waste levy reserve to kerbside.

10 Revenue from the wastewater treatment plants has reduced $96k with less sludge material from waste treatment plants expected due to more efficient use of the Tahuna WWTP incinerator.

11 Revenue from kerbside collection and other internal disposal fees has reduced $295k due to less volume of materials from red bin collections.

Expenditure

Personnel costs

12 Personnel costs have decreased from $1.253 million to $1.238 million, a decrease of $15k (1.2%), reflecting a general salary increase, but offset by two fixed term positions ending in 2026.

Operations and maintenance costs

13 Operations and maintenance costs have decreased from $22.085 million to $20.221 million, a decrease of $1.864 million (8.4%), primarily due to:

a) A $694k (49%) reduction in monitoring costs at the Smooth Hill landfill site in line with the end of the three year baseline environmental monitoring (as required by consent conditions).

b) A $326k (2.6%) reduction in kerbside collection costs, mainly due to $594k reduced transportation costs of mixed recycling material to Timaru for processing, however, this is offset by increased kerbside contract costs of $268k due to Cost Fluctuation Adjustments.

c) A $753k (32.1%) reduction in ETS costs due to lower global carbon credit costs and reduced tonnage.

d) A $176k (8.3%) reduction in the variable component of the landfill management contract due to an expected reduction in tonnage.

e) Offsetting the above decreases in the budget, transfer station contract costs are budgeted to increase $113k due to the increased cost of transportation of material from Waikouaiti to Green Island.

Occupancy costs

14 Occupancy costs have increased from $246k to $264k, an increase of $18k (7.3%), due to an increase in rates ($32k), partially offset by a reduction in insurance costs ($13k).

Consumables and general costs

15 Consumables and general costs have decreased from $4.381 million to $4.248 million, a decrease of $133k (3.0%).

16 Waste levy costs have reduced by $223k (5.6%), despite an increase in the levy rate payable from $65/tonne to $70/tonne as at 1 July 2026, due to an expected reduction in tonnage.

17 Budgeted costs for other consulting costs increased by $44k, primarily relating to specialist landfill consultants.

18 Further offsetting this is a $50k increase in legal and consultants’ fees for Smooth Hill to cover tender documentation costs and the development of various plans as required by consent conditions.

Internal costs

19 Internal costs have increased from $5.059 million to $5.900 million, an increase of $841k (16.6%). A decrease in the cost of disposing kerbside collection material at the Green Island landfill, due to less kerbside material entering the landfill, is offset by an increase in Waste Strategy costs to fund the transport costs of mixed recycling material to Timaru. These costs are funded by the Wate Minimisation Levy.

Depreciation costs

20 Depreciation has increased from $1.768 million to $2.171 million, an increase of $403k (22.8%).

Interest costs

21 Interest has increased from $2.767 million to $3.390 million, an increase of $623k (22.5%). This is below the expected interest in year two of the 9 year plan ($3.909 million) as a result of delayed capital spend ($15 million).

FEES AND CHARGES

22 Fees and charges for Waste Minimisation have generally increased by an average of 8.5%, reflecting contract cost increases and an increase in the waste disposal levy on municipal waste from 1 July 2026.

23 Additionally, some charges had higher increases (up to 39%) to account for a previous increase in the waste disposal levy on non-hazardous and inert materials.

24 Transfer Station charges for station wagons have been removed, as these will be incorporated into ‘car’ category charges.

OPTIONS

25 Council receives waste levy funding from the Ministry for Environment, and sets direction for how the funding will be used through the Waste Management and Minimisation Plan 2025 (WMMP).

26 There are currently surplus waste levy funds. Council direction is sought on whether more of the waste levy should be allocated to capital expenditure, which is possible while still adhering to the WMMP.

Option One – Use waste levy surplus for capex (Recommended Option)

27 Council’s WMMP allows waste levy funds to be used for capital projects where they support waste minimisation activity. Under this option, Council would use the current levy surplus for capital expenditure.

28 This would provide approximately $409k for eligible capital projects in 2026/27.

Advantages

· Helps to deliver infrastructure in a cost-effective way

· Reduced debt funding for capital projects

· Consistent with WMMP objectives

Disadvantages

· Capital funding may be hard to shift once allocated.

Emissions impact statement

· This option is anticipated to have minimal effect on achievement of Dunedin’s emissions reduction targets.

Option Two – Status Quo

29 Under this option, Council would continue to use the waste levy primarily for operational expenditure and community grants. The current surplus would be retained in reserve for future operational costs in alignment with the WMMP.

30 No additional levy funding would be allocated to capex.

Advantages

· Continuity of support for community projects

· Supports waste minimisation goals and emissions reduction goals

· Retains flexibility to allocate the waste levy surplus other waste minimisation initiatives

Disadvantages

· Higher proportion of debt funding used for capital projects

Emissions impact statement

· This option would continue existing levels of support for both DCC and Dunedin city’s emissions reduction targets.

Signatories

Author:	Chris Henderson - Group Manager Waste and Environmental Solutions
Authoriser:	Scott MacLean - General Manager, City Services

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/27	88
⇩b	Funding Impact Statement - Waste Minimisation	89
⇩c	Draft 2026/27 fees and charges - Waste Minimisation	90

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 Waste Minimisation Group activities primarily contribute to the objectives and priorities of the above strategies

Māori Impact Statement

Sustainability

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the Waste Minimisation Group for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the Waste Minimisation Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

Resilient City - Draft Operating Budget 2026/27

Department: Executive Leadership Team

EXECUTIVE SUMMARY

1 This report provides an overview of the draft operating budgets for the Annual Plan 2026/27 for the Resilient City Group, as shown at Attachment A. A draft funding impact statement is shown at Attachment B. The following activities are provided for:

· City Development

· City Growth

· Civil Defence

· Community Partnerships

· Housing Policy

· South Dunedin Future

· Zero Carbon

2 This report asks the Council to adopt the draft operating budget for the purposes of developing the Annual Plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27:

i) The draft 2026/27 operating budget for the Resilient City Group as shown/amended at Attachments A and B.

OPERATING BUDGETS

3 The 20267/27 draft operating budget is $12.175 million. This is an increase of $179k (1.5%) from the 2025/26 year. The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

4 Rates revenue increased from $11.600 million to $11.774 million, an increase of $174k (1.5%).

Expenditure

Personnel costs

5 Personnel costs have increased from $5.652 million to $5.898 million, an increase of $246k (4.4%), reflecting a general salary increase and step increases.

Operations and maintenance costs

6 Operations and maintenance costs have increased from $596k to $999k, an increase of $403k (67.6%). This increase is mainly due to reclassification of expenditure items from other expense categories as follows:

a) South Dunedin Future contracted services for the citywide climate and resilience programme of $110k were reclassified from consumables and general costs. These costs were previously categorised as consulting services and relate to contracted work towards natural hazard screening, risk assessments, adaptation planning guidance, and development of toolkits.

b) The Service Level Agreement (SLA) to Dunedin Budget Advisory Services to manage the Electricity Fund of $185k has been reclassified from grants and subsidies to operations and maintenance costs.

7 The SLA for Cosy Homes ($111k) has been reinstated on signing of the new agreement.

Consumables and general costs

8 Consumables and general costs have decreased from $1.569 million to $1.179 million, a decrease of $390k (24.9%), primarily due to an overall reduction in consultancy costs of $405k. The key drivers are:

a) City Development: An overall $196k decrease in consultancy costs reflecting demand and current capability within the team.

b) South Dunedin Future: Consultancy decreased by $183k, due to reclassification of expenditure to operations and maintenance costs ($110k) and a reduction in cost based on the staged implementation approach of the Citywide Climate Resilience programme (in line with the Council resolution in January 2025).

Grants and subsidies

9 Grants and subsidies costs have decreased from $2.417 million to $2.293 million, a decrease of $124k (5.1%). This increase is mainly due to reclassification of expenditure items from other expense categories or activity groups as follows:

a) The SLA to Dunedin Budget Advisory Services of $185k was reclassified to Operations and Maintenance costs reflecting the nature of the agreement, as outlined above.

b) The Te Au Toroa Grant ($61k) has been transferred to the Resilient City Group (Community Partnerships) from Governance and Support (Corporate Policy).

FEES AND CHARGES

10 There are no fees and charges associated with the Resilient City Group.

Signatories

Authoriser:

Scott MacLean - General Manager, City Services

David Ward - General Manager, 3 Waters, Property and Urban Development

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/27	97
⇩b	Funding Impact Statement - Resilient City	98

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 Resilient City Group activities primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Sustainability

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the Resilient City Group for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the Resilient City Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

City Properties - Draft Operating Budget 2026/27

Department: Property

EXECUTIVE SUMMARY

1 This report provides an overview of the draft operating budget for the Annual Plan 2026/27 for the City Properties Group, as shown at Attachment A. A draft funding impact statement is shown at Attachment B. The following activities are provided for:

· Community Housing

· Community Property

· Holding Property

· Investment Property

· Operational Property

· Property Management

· Parking Operations

2 A schedule of proposed fees and charges for the 2026/27 year is also presented at Attachment C.

3 This report asks the council to adopt the draft operating budgets and fees and charges for the purpose of developing the annual plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27:

i) The draft 2026/27 operating budget for the City Properties Group as shown/amended at Attachments A and B.

ii) The draft 2026/27 fees and charges schedules for the City Properties Group as shown/amended at Attachment C.

OPERATING BUDGET

4 The 2026/27 draft operating budget is $52.464 million. This is an increase of $2.207 million (4.4%) from the 2025/26 year. The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

5 Rates revenue has increased from $12.821 million to $13.458 million, an increase of $637k (5.0%).

External revenue

6 External revenue has increased from $28.568 million to $29.930 million, an increase of $1.362 million (4.8%).

7 Community Housing revenue has increased from $7.940 million to $8.454 million, an increase of $514k (6.5%) based on an 8% rental increase.

8 Community property revenue has increased by $676k (90.4%) due mainly to $389k additional electricity recoveries for the Dunedin Ice Stadium and $130k rental revenue for 301 Moray Place, which was previously unbudgeted.

9 Holding property revenue has decreased by $149k (16.0%) due to reduced revenue for 1 White St and 278 King Edward St, offset by $105k additional waste levy recoveries from the Milners Road property.

10 Parking Operations has increased by $9k (0.1%). Parking occupancy has been lower than anticipated in 2025/26. This decreased occupancy has been considered in combination with an increase in parking fees.

Fair value gain

11 Fair value in investment property has decreased from $5.800 million to $2.018 million, a decrease of $3.782 million (65.2%). The fair value gain of $2.018 million has been calculated based on the current value of the portfolio, historical movements and current market indicators.

Internal revenue

12 Internal revenue has increased from $8.382 million to $8.590 million, an increase of $208k (2.5%), driven by internal rent changes across activities.

Expenditure

Personnel costs

13 Personnel costs have increased from $4.178 million to $4.186 million, an increase of $8k (0.2%), driven by a general salary increase. However, this is partially offset by a staff member transfer to the Governance and Support Services Group.

Operations and maintenance costs

14 Operations and maintenance costs have increased from $7.876 million to $8.913 million, an increase of $1.037 million (13.2%), primarily due to:

a) Two major supplier contracts; grounds maintenance and compliance services have been publicly tendered in the previous two years and cost increases have been reflected in the 2026/27 budgets. Staff have reviewed services provided under this contract to ensure spend is optimised and fits within the budget envelope.

b) The planned compliance budget has increased by $1.018 million across the portfolios, which is partly offset by a $548k decrease in the planned maintenance budget. Compliance costs relate to the work required to maintain Building Warrant of Fitness’. These costs will now be tracked separately from planned maintenance.

c) Reactive maintenance has increased by $490k (13.1%). This includes increases to public toilet maintenance ($46k) and the Municipal Chambers Exterior Heritage Restoration project ($100k). This also include an increase to the general reactive maintenance budget of $200k to accommodate increasing costs.

d) Contracted Management Services for the Wall St Mall have increased by $60k (19.7%). Mall Management Services will be publicly tendered in 2026. Property valuation and rental assessment services have increased by $35k (20.9%) to reflect the residential property valuation cycle.

Occupancy costs

15 Occupancy costs have increased from $12.366 million to $13.804 million, an increase of $1.438 million (11.6%). This is primarily due to:

a) Rates have increased by $602k (10.8%), reflecting a budgeted increase for rates.

b) Electricity and gas increased by $495k (27.8%), largely due to $369k increased electricity costs for the Dunedin Ice Stadium, which is recoverable, as noted in the External Revenue section.

c) Contract cleaning costs have increased by $127k (8.5%), reflecting an anticipated 4.2% increase in the Living Wage, as well as additional public toilet facilities.

d) Insurance costs have increased by $193k (8.1%).

e) The above increases are partially offset by rental cost reduction of $93k (65.3%) relating to Burns House.

Consumables and general costs

16 Consumables and general costs have decreased from $1.876 million to $1.792 million, a decrease of $84k (4.5%). This is primarily due to $105k of increased recoverable waste levy costs, offset partly by a $31k decrease in CCTV costs.

Grants and Subsidies costs

17 Grants and subsidies costs have decreased from $464k to $448k, a decrease of $16k (3.4%) due to community hall service agreement grants decreasing $15k.

Internal Costs

12 Internal costs have increased from $3.907 million to $3.980 million, an increase of $73k (1.9%), reflecting a CPI increase to corporate charges.

Depreciation costs

18 Depreciation has decreased from $15.068 million to $14.500 million, a decrease of $568k (3.8%). The decrease is due to asset revaluations and updated depreciation rates. A depreciation review is currently in underway, and any changes will be incorporated into the May 2026 budget update.

Interest costs

19 Interest has increased from $4.523 million to $4.841 million, an increase of $318k (7.0%). This is mainly due to increased debt resulting from the capital programme and the change in interest rate.

FEES AND CHARGES

20 Fees and charges for the City Properties Group have generally remained flat. There are some exceptions:

a) Housing charges have increased by an average of 8%, reflecting an increase in operating expenditure for community housing. Refer to the ‘Community Housing rent update’ section below for more information.

b) On-street, hourly parking charges in the city’s Core Zone and Inner Zone have increased by just over 14% ($0.50), noting this increase compensates for the previous budget which overstated occupancy.

c) Additionally, parking charges have increased on weekdays for off-street metered car parks at Filleul Street, as well as on weekends at the car park building on Great King Street.

21 New fees relating to disruption of on-street parking for 5 days or more have been proposed.

Community housing rent

22 The draft budget 2026/27 has been based on an 8% rental increase. This results in 22% for rates revenue and 78% external revenue. This does not comply with the current Revenue and Financing Policy of 10% rates revenue and 90% external revenue.

23 To fall within the Revenue and Financing policy, an increase of 28% for external revenue (rental) would need to occur.

Signatories

Author:	Anna Nilsen - Group Manager, Property Services
Authoriser:	David Ward - General Manager, 3 Waters, Property and Urban Development

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/2027	105
⇩b	Funding Impact Statement - City Properties	106
⇩c	Draft 2026/27 fees and charges - City Properties	107

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 City Properties Group activities primarily contribute to the objectives and priorities of the above strategies

Māori Impact Statement

Council budgets impact broadly across all Dunedin communities, including Māori. The adoption of Te Taki Haruru – Māori Strategic Framework signals Council’s commitment to mana whenua and to its obligations under the Treaty of Waitangi. Mana whenua and matāwaka will have an opportunity to engage on the Annual Plan 2026/27.

Sustainability

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the City Properties Group for inclusion in the Annual Plan.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the City Properties Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to present on the draft 2026/27 Annual Plan.

Council

4 March 2026

Community Recreation - Draft Operating Budget 2026/27

Department: Parks and Recreation

EXECUTIVE SUMMARY

1 This report provides an overview of the draft operating budget for the Annual Plan 2026/27 for the Community Recreation Group, as shown at Attachment A. A draft funding impact statement is shown at Attachment B. The following activities are provided for:

· Aquatic Services

· Botanic Garden

· Cemeteries and Crematorium

· Parks and Reserves

2 A schedule of proposed fees and charges for the 2026/27 year is also presented at Attachment C.

3 This report asks the Council to adopt the draft operating budget and fees and charges for the purpose of developing the annual plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27:

i) The draft 2026/27 operating budget for the Community Recreation Group as shown/amended at Attachments A and B.

ii) The draft 2026/27 fees and charges schedules for the Community Recreation Group as shown/amended at Attachment C.

OPERATING BUDGETS

4 The 2026/27 draft operating budget is $47.714 million. This is an increase of $1.910 million (4.2%) from the 2025/26 year. The following sections explain the revenue and expenditure change from the previous year.

Revenue

Rates

5 Rates revenue increased from $38.467 million to $40.174 million, an increase of $1.707 million (4.4%).

External revenue

6 External revenue increased from $7.123 million to $7.320 million, an increase of $197k (2.8%), mainly driven by an increase in Aquatic Services gym/swim membership revenue of $168k (12.7%).

Expenditure

Personnel costs

7 Personnel costs have increased from $11.052 million to $11.348 million, an increase of $296k (2.7%). This includes an increase in Aquatic Services of $326k (5.0%) and a reduction in Parks of $65k (2.0%) due to removal of two fixed term city sanctuary roles in September 2025 that are no longer funded. Budget for mileage costs for staff travelling has increased $20k (25.3%) to reflect actual costs in 2024/25.

Operations and Maintenance

8 Operations and maintenance costs increased from $14.269 million to $15.148 million, an increase of $879k (6.2%), due to the following changes:

a) A 2% contractually agreed annual increase in the Greenspace contracts totalling $207k;

b) In addition to the above contractual uplift, an additional $268k is required to cover the increase in living wage over the past three years, which has exceeded the annual 2% contractual increase;

c) Additional new asset maintenance required for transport buildouts, e.g., George St ornamental gardens, St Leonards to Port Chalmers maintenance previously varied into the maintenance contract without a corresponding budget uplift, costing $250k annually;

d) Aquatics increase in plant maintenance costs of $40k (6.8%) across all pools, and pool chemicals increase of $13k (15.6%); and

e) Botanic Garden apprenticeship training increase of $31k (6.2%).

Occupancy costs

9 Occupancy costs have increased from $6.208 million to $6.672 million, an increase of $464k (7.5%), due to:

a) Energy costs have increased by $303k. This is made up of gas $87k, electricity $106k, and other energy costs (such as fuel and woodchips) $110k.

b) Rates and insurance have increased by $97k and $19k respectively; and

c) Water costs for Aquatics and the Botanic Garden have increased by $30k (9.0%), based on prior year actual consumption.

Consumables and general costs

10 Consumables and general costs have increased from $705k to $801k, an increase of $96k (13.6%), due to scheduled asset valuations and condition assessments required in the 2026/27 financial year that were not required in 2025/26, which is in line with the triannual valuation process.

Grants and subsidies

11 Grants and subsidies costs have increased from $611k to $762k, an increase of $151k (24.7%), primarily due to the start of the $150k Predator Free grant, as approved by Council as part of the 9 year plan, and agreed CPI increases for swimming grants.

Depreciation costs

12 Depreciation costs have decreased from $7.988 million to $7.850 million, a decrease of $138k (1.7%), due to the timing of capital works on Moana Pool.

Interest costs

13 Interest has increased from $1.614 million to $1.712 million, an increase of $98k (6.1%), due to increased debt associated with the capital programme and the change in interest rate.

FEES AND CHARGES

14 Fees and charges for Community Recreation have generally either remained flat or increased by 2.0 to 3.5% to reflect inflation forecasts and increases to contractor costs. Exceptions include:

a) Swim school “Just Swim For You” group lessons have increased by 30%, bringing the charge more into line with other group lesson charges.

b) Swim membership with access to all pools have increased by 5.7-18.0% due to weekly direct debit charges, which have been updated to be relative to the adult weekly direct debit charges for consistency.

c) Swim and gym concessions have decreased by 1-4%, to align with a ‘buy X, get Y free’ promotion, i.e., buy 10 swims and get two free, to encourage participation.

d) Swim teacher travel charges have shifted from a flat fee to a variable charge based on distance travelled.

e) ‘Toddler time’ pool rates have decreased by 20-23%, (from $5.40 to $4.30 at Moana, St Clair and Te Puna, $5.20 to $4.00 at Port Chalmers) to encourage more parents to enjoy swimming with their pre-schoolers. The fee covers an adult and an under 5 pool entry and brings the fee in line with a child entry.

f) Sportsground lighting has increased by 10.0%, in line with increases in electricity costs.

15 Two new fees have been introduced for 5 week bookings of Swim School lessons at Moana and Whakaehu pools.

Signatories

Author:	Heath Ellis - Group Manager Parks and Recreation
Authoriser:	Scott MacLean - General Manager, City Services

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/27	116
⇩b	Funding Impact Statement - Community Recreation	117
⇩c	Draft 2026/27 fees and charges - Community Recreation	118

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 Community Recreation Group activities primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Sustainability

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the Community Recreation Group for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the Community Recreation Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

Creative and Cultural Vibrancy - Draft Operating Budget 2026/27

Department: Arts and Culture and Library

EXECUTIVE SUMMARY

1 This report provides an overview of the draft operating budgets for the Annual Plan 2026/27 for the Creative and Cultural Vibrancy Group, as shown at Attachment A. A draft funding impact statement is shown at Attachment B. The following activities are provided for:

· Creative Partnerships

· Dunedin Public Art Gallery (DPAG), Toitū and Lan Yuan

· Libraries and City of Literature

· Olveston Historic House

2 A schedule of proposed fees and charges for the 2026/27 year is also presented at Attachment C.

3 This report asks the Council to adopt the draft operating budget and fees and charges for the purpose of developing the annual plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27:

i) The draft 2026/27 operating budget for the Creative and Cultural Vibrancy Group as shown/amended at Attachments A and B.

ii) The draft 2026/27 fees and charges schedules for the Creative and Cultural Vibrancy Group as shown/amended at Attachment C.

OPERATING BUDGETS

4 The 2026/27 draft operating budget is $32.775 million. This is an increase of $655k (2.0%) from the 2025/26 year. The following sections explain the revenue and expenditure charged from the previous year.

Revenue

Rates

5 Rates revenue has increased from $29.507 million to $30.081 million, an increase of $574k (1.9%).

External revenue

6 External revenue increased from $2.047 million to $2.097 million, an increase of $50k (2.4%). This is primarily due to general admission fees at Olveston increasing by $37k (9.2%), reflecting forecast visitor volumes, based on visitation for the 2024/25 year.

Grants and subsidies

7 Grants and subsidies have increased from $362k to $391k, an increase of $29k (8.0%). Lan Yuan is expecting an increase in grants from the Dunedin Chinese Garden Trust of $9k (130.8%).

8 DPAG is expecting to be awarded funding of $100k from Creative New Zealand. A three year contract expired at the end of 2025; however, it is anticipated that this will be available again from 2026/27.

Expenditure

Personnel costs

9 Personnel costs have increased from $12.060 million to $12.548 million, an increase of $488k (4.0%), reflecting salary changes and an increase in training costs.

Operations and maintenance

10 Operations and maintenance costs have increased from $1.528 million to $1.558 million, an increase of $30k (2.0%), primarily due to the following:

a) DPAG, Toitū and Lan Yuan have increased by $22k (2.4%) for Building Management System (BMS) replacement parts, collection management costs and event costs.

b) Libraries’ costs increased $44k for security due to health and safety concerns at both Mosgiel and the new South Dunedin libraries.

c) These increases are partially offset by the budget for the Community Partnerships Creative Capability Workstream of $30k. This has been reclassified from operations and maintenance to grants and subsidies reflecting the nature of the funding.

Occupancy costs

11 Occupancy costs increased from $1.403 million to $1.470 million, an increase of $67k (4.8%), primarily driven by electricity and gas cost increases of $76k (10.0%), which has been partially offset with reduced insurance costs of $9k (5.6%).

Consumables and general costs

12 Consumables and general costs decreased from $1.493 million to $1.372 million, a decrease of $121k (8.1%), due to:

a) A reduction of $75k for Creative Partnerships, relating to one-off funding for the Performing Arts Action Plan in 2025/26.

b) A $33k reduction for DPAG, Toitū and Lan Yuan, through reduced travel ($8.2k) and alignment of consumable costs to prior actual costs.

c) A $13k reduction in library online subscriptions and software costs.

Grants and subsidies

13 Grants and subsidies costs have increased from $5.856 million to $5.992 million, an increase of $136k (2.3%), due to:

a) An increase of 2% for the Otago Museum Levy ($106k), which is consistent with year 2 of the 9 Year Plan

b) A reclassification of the Community Partnerships Creative Capability Workstream grant ($30k) from the operations and maintenance cost line to grants and subsidies as outlined in paragraph 10(c) above.

Internal charges

14 Internal charges increased from $7.464 million to $7.732 million, an increase of $268k (3.6%), reflecting a CPI increase to corporate charges.

Depreciation costs

15 Depreciation decreased from $1.712 million to $1.439 million, a decrease of $273k (15.9%), mainly due to timing of capital expenditure. Changes in the expected timing of project completion has resulted in lower depreciation than previously forecast.

Interest costs

16 Interest has increased from $604k to $664k, an increase of $60k (9.9%), due to increased debt associated with the capital programme and the change in interest rate.

FEES AND CHARGES

17 Fees and charges for the Creative and Cultural Vibrancy Group have generally increased by between 2.5-4.0%. Exceptions include:

a) Admission fees to Lan Yuan Chinese Garden have increased by approximately 5% to align with increases in labour and materials costs.

b) Libraries’ inter-loan charges increased from $10 to $13 (30.0%). Inter-loan is a co-operative scheme where libraries throughout New Zealand lend items to each other. This fee has increased due to increased costs of postage and handling.

18 A new fee of $10 is proposed for the ‘Introduction to Ōtepoti’ immersive experience at the Toitū theatrette.

Signatories

Author:

Cam McCracken - Director DPAG and Toitū, Lan Yuan & Olveston

Sarah Gallagher - Director Library Services

Authoriser:

Mike Costelloe - General Manager, Arts, Culture & Economic Development

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/27	133
⇩b	Funding Impact Statement - Creative and Cultural Vibrancy	134
⇩c	Draft 2026/27 fees and charges - Creative and Cultural Vibrancy	135

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 Creative and Cultural Vibrancy Group activities primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Sustainability

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the 3 Waters Group for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the Creative and Cultural Vibrancy Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

Vibrant Economy - Draft Operating Budget 2026/27

Department: Enterprise Dunedin and Events

EXECUTIVE SUMMARY

1 This report provides an overview of the draft operating budget for the Annual Plan 2026/27 for the Vibrant Economy Group, as shown at Attachment A. A draft funding impact statement is shown at Attachment B. The following activities are provided for:

· Economic Development

· isite Visitor Centre (isite)

· City Marketing

· Events

2 A schedule of proposed fees and charges for the 2026/27 year is also presented at Attachment C.

3 This report asks the Council to adopt the draft operating budget for the purposes of developing the Annual Plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27

i) The draft 2026/27 operating budget for the Vibrant Economy Group as shown/amended at Attachments A and B.

ii) The draft 2026/27 fees and charges schedules for the Vibrant Economy Group as shown/amended at Attachment C.

OPERATING BUDGETS

4 The 2026/27 draft operating budget is $12.173 million. This is an increase of $450k (3.8%) from the 2025/26 year. Year two of the 9 year plan included an increase of $400k for the Festivals and Events plan. The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

5 Rates revenue has increased from $11.148 million to $11.485 million, an increase of $337k (3.0%).

External revenue

6 External revenue has increased from $560k to $681k, an increase of $121k (21.6%), due to new revenue from the Lantern Festival ($99k) and Mid-Winter Ice Skating event ($49k).

7 Offsetting the increase, merchandise sales at the isite have decreased from $200k to $175k, a decrease of $25k (12.5%), as a result of fewer cruise ship visits expected in 2026/27. This decrease means the isite is non-compliant with Council’s Revenue and Financing Policy. The Policy will be reviewed as part of the development of the 10 year plan.

Expenditure

Personnel costs

8 Personnel costs have increased from $3.268 million to $3.456 million, an increase of $188k (5.8%). This increase relates to a general salary increase and additional staffing required for new events as per the Festival and Events plan.

Operations and maintenance costs

9 Operations and maintenance costs have increased from $2.959 million to $4.866 million, an increase of $1.907 million (64.4%).

10 This increase is mainly due to the Service Level Agreement (SLA) to Dunedin Venues Management Limited for event attraction, where $1.645 million, of the $2.045 million in total, has been reclassified from grants and subsidies.

11 The remaining increase in budget relates to the approved Festivals and Events Plan for events such as the night market, solar eclipse event, Matariki event, and lantern festival. Due to the timing of Matariki, the event occurs twice within the 2026/27 budget year.

Consumables and general costs

12 Consumables and general costs have increased from $1.310 million to $1.383 million, an increase of $73k (5.6%), relating to the above-mentioned spending within Events along with advertising/promotions cost increases of $97k (24.0%).

13 Costs for the isite have reduced by $47k (25.0%) driven by a $21k reduction in inventory purchases and $21k reduced bank commissions to better reflect actual expected costs.

Grants and subsidies

14 Grants and subsidies have decreased overall from $2.861 million to $1.063 million, a decrease of $1.798 million (62.8%). This is made up from the following changes:

a) The reclassification of event attraction funding to Dunedin Venues Management Limited to the operations and maintenance cost line of $1.645 million.

b) A grant to the Centre of Digital Excellence (CODE) for $150k has been included, which was approved as part of the 9 year plan 2025-34.

c) A grant towards the Matariki event for $15k, funded through the additional allocation for the Festival and Events plan.

d) A reduction to the Major Events grant of $280k due to a scheduled reduction in the funding plan.

e) A reduction in the grant to the Masters Games Trust of $38k as the event is not hosted in Dunedin in the 2026/27 year.

Internal costs

15 Internal costs have increased from $1.264 million to $1.325 million, an increase of $61k (4.8%), reflecting a CPI increase to corporate charges.

FEES AND CHARGES

16 Fees and charges for the Vibrant Economy Group, relating to film permit charges, remain unchanged from the 2025/26 year.

Signatories

Author:

Sian Sutton - Manager, Enterprise Dunedin

Dan Hendra - Team Leader - Events

Authoriser:

Mike Costelloe - General Manager, Arts, Culture & Economic Development

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/27	143
⇩b	Funding Impact Statement - Vibrant Economy	144
⇩c	Draft 2026/27 fees and charges - Vibrant Economy	145

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 Vibrant Economy Group activities primarily contribute to the objectives and priorities of the above strategies

Māori Impact Statement

Sustainability

The Annual Plan 2026/27 is not proposing any changes to that provided for in the 9 year 2025-34 plan. Major issues and implications for sustainability are discussed in the Infrastructure Strategy and financial resilience is discussed in the Financial Strategy of the current 9 year plan 2025-34.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the Vibrant Economy Group for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the Vibrant Economy Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

Regulatory Services - Draft Operating Budget 2026/27

Department: Corporate and Regulatory

EXECUTIVE SUMMARY

1 This report provides an overview of the operating budgets for the Annual Plan 2026/27 for the Regulatory Services Group, as shown at Attachment A. A draft funding impact statement is shown at Attachment B. The following activities are provided for:

· Building Services

· Compliance Solutions

· Parking Services (Enforcement)

· Resource Consents

2 A schedule of proposed fees and charges for the 2026/27 year is also presented at Attachments C and D.

3 This report asks the Council to adopt the draft operating budget for the purposes of developing the Annual Plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27:

i) The draft 2026/27 operating budget for the Regulatory Services Group as shown/amended at Attachments A and B.

ii) The draft 2026/27 fees and charges schedules for the Regulatory Services Group as shown/amended at Attachment C and D.

OPERATING BUDGETS

4 The 2026/27 draft operating budget is $23.153 million. This is an increase of $758k (3.4%) from the 2025/26 year. The following sections explain the revenue and expenditure changes from the previous year.

Rates revenue

5 Rates revenue increased from $6.037 million to $6.316 million, an increase of $279k (4.6%).

External revenue

6 External revenue has increased from $15.930 million to $16.397 million, an increase of $467k (2.9%), primarily driven by increased parking infringement charges of $360k (11.3%) and LIM fees increase of $44k.

7 Towage revenue has increased by $21k (237%) due to increased towage volume and fees (set by legislation).

8 Dog Registration fees have increased by $41k (2.7%).

Expenditure

Personnel costs

9 Personnel costs have increased from $13.352 million to $13.748 million, an increase of $396k (3.0%), reflecting a general salary increase.

Operations and maintenance costs

10 Operations and maintenance costs have increased from $786k to $841k, an increase of $55k (7.0%), primarily due to an increase in Parking Services towage costs by $32k due to a higher than expected number of towed vehicles and an increase to the abandoned vehicle removal contract of $6k.

Consumables and General Costs

11 Consumables and general have increased from $1.804 million to $1.950 million, an increase of $146k (8.1%). Resource consent compliance expenditure has increased by $166k (42.8%) due to the requirements for planning consultants, with $240k added to align with actual activity costs. This is being partially offset by reduced spending in legal fees of $75k.

12 Parking services (enforcement) expenditure has increased by $48k (4.8%) driven by an increase to postage of $113k (149%) due to licence plate recognition (LPR) infringements being posted. This is partially offset by court lodgement fee costs reducing by $80k (18.8%). Debt collection commission fees are reduced by $31k (31%), reflecting actual costs.

Internal charges

13 Internal charges have increased from $6.126 million to $6.292 million, an increase of $166k (2.7%), reflecting a CPI increase to corporate charges.

FEES AND CHARGES

14 Fees and charges for the Regulatory Services Group have generally increased by 2.5-4.0%. There are some exceptions:

a) Alcohol licencing and environmental health fees are unchanged, as set by legislation.

b) Animal Services daily sustenance charges have increased by 50% to $15 per day to account for time spent by Animal Control Officers.

c) The removal of abandoned vehicles fee has increased by 292% to $200, to reflect actual towing costs.

d) Producer Statement Authors registration and renewal fees have increased by 20% to $180. This is the first increase in seven years, and still compares favourably to costs charged by other Councils.

15 New Building Services fees for non-consented, stand-alone dwellings have been introduced, which relate to new legislation on granny flats.

16 New Resource Consents monitoring fees have been introduced, which account for changes from the Resource Management (Consenting and Other System Changes) Amendment Act 2025. New fees have also been introduced relating to site contamination searches for multiple sites.

Signatories

Author:

Bonnie Wright - Manager Compliance Solutions

Mike Hart - Acting Manager, Building Services

Alan Worthington - Resource Consents Manager

Authoriser:

Paul Henderson - General Manager Corporate and Regulatory Services

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/27	151
⇩b	Funding Impact Statement - Regulatory Services	152
⇩c	Draft 2026/27 fees and charges - Building Schedule B	153
⇩d	Draft 2026/27 fees and charges - Regulatory Services	154

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 Regulatory Services Group activities primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Sustainability

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the Regulatory Services Group for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the Regulatory Services Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

Treaty Partnership - Draft Operating Budget 2026/27

Department: Mana Ruruku

EXECUTIVE SUMMARY

1 This report provides an overview of the draft operating budgets for the Annual Plan 2026/27 for the Treaty Partnership Group, as shown at Attachment A. A draft funding impact statement is shown at Attachment B.

2 This report asks the Council to adopt the draft operating budget for the purposes of developing the Annual Plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27:

i) The draft 2026/27 operating budget for the Treaty Partnership Group as shown/amended at Attachment A.

OPERATING BUDGETS

3 The 2026/27 draft operating budget is $926k. This is an increase of $5k (0.5%) from the 2025/26 year. The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

4 Rates revenue increased from $921k to is $926k, an increase of $5k (0.5%).

Expenditure

Personnel costs

5 Personnel costs have increased from $487k to $501k, an increase of $14k (2.9%), reflecting a general salary increase.

Operations and maintenance costs

6 Operations and maintenance costs have increased from $250k to $255k, an increase of $5k (2.0%), reflecting a transfer from consumables and general expenditure to correctly classify contracted cultural support services.

7 The principal expenditure within this category is the $250,000 Service Level Agreement (SLA) with Aukaha. This is reserved funding that supports services requested by multiple areas of Council and enables consistent, coordinated partnership input across activities such as planning, resource management, and other functions where iwi engagement is required or adds significant value.

Occupancy costs

8 Occupancy costs have increased from $5k to $7k, an increase of $2k (40.0%), reflecting increased costs associated with venue hire.

Consumables and general

9 Consumables and general costs have decreased from $100k to $83k, a decrease of $17k (17.0%), mainly due to the above classification correction (paragraph 6) for cultural support services and a contribution towards the overall Council reduction in consultancy costs.

10 Consumables and general costs include consultant cultural trainers, Te Pae Māori expenditure and consultants to develop tools for the implementation of Te Taki Haruru.

Grants and subsidies

11 Grants and subsidies costs have remained the same as the previous year at $79k. This budget has typically supported three annual grants of $26.3k for local marae capacity. It is proposed this funding be repurposed to focus specifically on building rakatahi (youth) leadership, governance capability, and community engagement capacity. While this represents a shift in emphasis and may be viewed as a change from the current approach, it more directly aligns with Council priorities around capacity building, partnership, and inclusive civic participation.

FEES AND CHARGES

12 There are no fees and charges associated with the Treaty Partnership Group.

Signatories

Author:	Caron Solomon - Kaiwhakahaere o Mana Ruruku
Authoriser:	Nicola Morand - Manahautū (General Manager Community and Strategy)

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/27	171
⇩b	Funding Impact Statement - Treaty Partnership	172

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 Treaty Partnership Group activities primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Sustainability

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the Treaty Partnership Group for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the Treaty Partnership Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

Governance and Support - Draft Operating Budget 2026/27

Department: Finance

EXECUTIVE SUMMARY

1 This report provides an overview of the draft operating budgets for the Annual Plan 2026/27 for the Governance and Support Services Group, as shown at Attachment A. A draft funding impact statement is shown at Attachment B. The following activities are provided for:

· Business Information Systems (BIS)

· Civic and Governance

· Corporate Leadership

· Council Communications and Marketing

· Customer Services

· Finance

· People, Projects and Risk

· Corporate Policy

· Fleet Operations

2 A schedule of proposed fees and charges for the 2026/27 year is also presented at Attachment C.

3 This report asks the Council to adopt the draft operating budget for the purposes of developing the Annual Plan 2026/27.

RECOMMENDATIONS

That the Council:

a) Adopts for the purposes of developing the Annual Plan 2026/27:

i) The draft 2026/27 operating budget for the Governance and Support Services Group as shown/amended at Attachments A and B.

ii) The draft 2026/27 fees and charges schedules for the Governance and Support Services Group as shown/amended at Attachment C.

OPERATING BUDGETS

4 The 2026/27 draft operating budget is $53.700 million. This is an increase of $199k (0.4%) from the 2025/26 year. The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

5 The Governance and Support Services group includes the corporate support activities of Council and realises investment revenue (such as interest and dividends received from Dunedin City Holdings Limited ‘DCHL’ and the Waipori Fund).

6 Each corporate activity is funded through a combination of rates revenue, external revenue and internal revenue (charged to other council activities). After allowing for the Council investments which return a net surplus, the required rates revenue for the Governance and Support Services Group is $2.357 million.

7 The Governance and Support Services group includes the $1.250 million of rates funding for the stadium, as outlined in the Dunedin Stadium Property Debt Repayment Options report on this agenda.

External revenue

8 External revenue has decreased from $20.276 million to $20.113 million, a decrease of $163k (0.8%), as the 2025/26 year included recovery revenue from Otago Regional Council for the 2025 Election.

Fair value gain

9 Fair value gains have increased from $1.332 million to $1.470 million, an increase of $138k (10.4%), representing an increase of the anticipated unrealised fair value gains on the Waipori Fund. Fair value gains represent the movement in market value of investments.

Grants and subsidies

10 Grants and subsidies have decreased from $2.019 million to $445k, a decrease of $1.574 million (78.0%), reflecting a reduction in Better off Funding and is aligned with the programme. The operating grant continues to be administered corporately and allocated to relevant activities via internal revenue as costs re incurred. The 2026/27 year is the final year of this funding.

Internal revenue

11 Internal revenue has increased from $29.002 million to $30.019 million, an increase of $1.017 million (3.5%), primarily due to an increase in corporate charges of $952k, in line with the CPI, and an increase in the allocation of funding from 3 Waters to Finance for Local Water Done Well ringfencing requirements.

Expenditure

Personnel costs

12 Personnel costs have increased from $20.103 million to $21.131 million, an increase of $1.028 million (5.1%). This increase includes a general salary increase and a provision for Council wide annual leave changes resulting from the general salary increase.

Operations and maintenance costs

13 Operations and maintenance costs have decreased from $8.369 million to $7.865 million, a decrease of $504k (6.0%), primarily due to:

a) 2025 Election costs of $778k have been removed.

b) Council Communications and Marketing have savings of $34k due to reduced website maintenance contractor costs.

c) Fleet Operations costs have decreased by $55k, due mainly to expected reduction in the cost of fuel consumption, however partly offset by an increase in the cost of mechanical repairs.

d) Business Information Systems contracted services costs reduced by $136k due to a change in the document management system.

e) IT consultancy has decreased by $190k due to reclassification of expenditure to consumables and general costs line.

f) These decreases have been partially offset with an increase in the IT managed services contract. Contract costs increased $764k (18.0%), which is in line with the contract awarded during 2025.

Consumables and general costs

14 Consumables and general costs have increased from $10.537 million to $11.804 million, an increase of $1.267 million (12.0%), primarily due to increases in councillor remuneration ($214k), audit fees ($302k), software licence fees ($464k), and postage costs ($97k).

15 The reclassification of IT consultancy of $190k for Project Management Support and Cloud Architecture has been moved to consumables and general from operations and maintenance costs.

16 The Te Au Torara grant of $60k has been recoded from the Corporate Policy activity to Community Partnerships and has now been included in the grants list.

Internal charges

12 Internal charges have decreased from $9.444 million to $8.038 million, a decrease of $1.406 million (14.9%), mainly reflecting the reduction of Better Off Funding.

Depreciation costs

17 Depreciation has decreased from $2.969 million to $2.598 million, a decrease of $371k (12.5%), reflecting changes in timing and spend on project completion. This has resulted in lower deprecation than previously forecast.

Interest costs

18 Interest has increased from $1.793 million to $1.943 million, an increase of $150k (8.4%). Debt allocation will be reviewed before May 2026 which will result in a change to the interest allocation between activity groups.

FEES AND CHARGES

19 LIM fees have increased by 5% in alignment with the increasing cost of processing.

Signatories

Authoriser:

Paul Henderson - General Manager Corporate and Regulatory Services

Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	Draft Operating Budget 2026/27	179
⇩b	Funding Impact Statement - Governance and Support	180
⇩c	Draft 2026/27 fees and charges - Governance and Support Services	181

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 Governance and Support Services Group activities primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Sustainability

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for the Governance and Support Services Group for inclusion in the Annual Plan 2026/27.

Financial considerations

Financial considerations are detailed in the report.

Significance

Engagement – external

There has been no external engagement in developing the draft budgets for the Governance and Support Services Group.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to engage in the Annual Plan 2026/27 consultation process.

Council

4 March 2026

Compliance with Revenue and Financing Policy - Annual Plan 2026/27

Department: Civic

EXECUTIVE SUMMARY

1 A Revenue and Financing Policy (the Policy) is required by the Local Government Act 2002 (LGA). It sets out how Council’s operating and capital expenditure will be funded, and the sources of those funds.

2 This report presents the level of compliance that the draft Annual Plan 2026/27 budget has with the Policy.

3 A review of the Revenue and Financing Policy will be undertaken as part of the development of the 10 year plan 2027-37 (10 year plan).

RECOMMENDATIONS

That the Council:

a) Notes the Compliance with Revenue and Financing Policy report.

b) Notes that a review of the Revenue and Financing Policy will be undertaken as part of the development of the 10 year plan 2027-37.

BACKGROUND

4 Section 102 of the LGA requires all councils to prepare and adopt a Revenue and Financing Policy. For each activity of Council, the Policy sets out how operating and capital expenditure will be funded, and the sources of those funds.

5 The Policy is normally reviewed every three years but can be amended earlier if required. The next Policy review will occur as part of the development of the 10 year plan. No amendments are proposed at this time.

DISCUSSION

6 A review has been undertaken of how the draft operating budgets for the Annual Plan 2026/27 comply with the Policy, as shown in Table 1.

7 In any budget year, there may be a level of variability between the policy and the budget, but this is not expected to be more than +/- 5%.

Table 1: Policy and draft budgets comparison

Activity	2025-34 Policy		2026/27 Budgets		Variance within +/- 5%
Activity	Rates Revenue %	Other Revenue %	Rates Revenue %	Other Revenue %	Variance within +/- 5%
City Properties
Community Housing	10%	90%	22%	78%	Note 1
Community, holding, operational properties and management	90%	10%	84%	16%	Note 2
Investment Property	0%	100%	0%	100%	ü
Parking Operations	0%	100%	0%	100%	ü
Community Recreation
Aquatic Services	65%	35%	67%	33%	ü
Botanic Garden	98%	2%	99%	1%	ü
Cemeteries (parks and burials)	60%	40%	60%	40%	ü
Crematorium	0%	100%	0%	100%	ü
Parks and Reserves	96%	4%	95%	5%	ü
Creative and Cultural Vibrancy
Creative partnerships (Ara Toi)	90%	10%	92%	8%	ü
Gallery, Garden and Museum	85%	15%	86%	14%	ü
Libraries and City of Literature	98%	2%	99%	1%	ü
Olveston	45%	55%	47%	53%	ü
Otago Museum levy	100%	0%	100%	0%	ü
Governance and Support Services
Civic and governance support, incl. corporate support services and Warm Dunedin	98%	2%	99%	1%	ü
Regulatory Services
Animal Services	10%	90%	16%	84%	Note 3
Alcohol Licensing	25%	75%	28%	72%	ü
Building Services	25%	75%	24%	76%	ü
Environmental Health	65%	35%	69%	31%	ü
Parking Enforcement	2%	98%	0%	100%	ü
Resource Consents	55%	45%	57%	43%	ü
Resilient City
Community partnerships	95%	5%	98%	2%	ü
City Development	100%	0%	98%	2%	ü
City Growth	100%	0%	99%	1%	ü
Civil Defence	100%	0%	100%	0%	ü
Housing Policy	100%	0%	100%	0%	ü
South Dunedin Future	80%	20%	86%	14%	Note 4
Zero Carbon	100%	0%	100%	0%	ü
Roading and Footpaths
Transport	75%	25%	77%	23%	ü
Kettle Park	100%	0%	100%	0%	ü
Treaty Partnership
Māori Partnership	100%	0%	100%	0%	ü
Vibrant Economy
City Marketing	99%	1%	100%	0%	ü
Economic Development	99%	1%	100%	0%	ü
Events	95%	5%	92%	8%	ü
Visitors Centre	70%	30%	78%	22%	Note 5
3 Waters
Water supply	80%	20%	84%	16%	ü
Wastewater	98%	2%	97%	3%	ü
Stormwater	99%	1%	99%	1%	ü
Waste Minimisation
Landfills	10%	90%	10%	90%	ü
Refuse, Recycling, Litter	98%	2%	98%	2%	ü
Waste Strategy (minimisation)	0%	100%	0%	100%	ü
Waste Support Services	100%	0%	100%	0%	ü

Note 1: Community Housing

8 The draft budgets for community housing have been prepared with an 8% increase in rental costs for the 2026/27 year. This proposed increase would not achieve compliance with the policy. Further discussion on this is included in the City Properties draft operating budget report.

Note 2: Community, holding, operational properties and management

9 The Community, Holding and Operational Property, and Property Management activities have an operating budget of $33.202 million, of which $17.175 million is funded by rates and $3.354 million is funded by external revenue.

10 The activities are requiring less funding from rates than indicated in the Policy due to an increase in rental revenue and cost recoveries, which was previously unbudgeted.

Note 3: Animal Services Note 3

11 The Animal Services activity has an operating budget of $2.057 million, of which $322k is funded by rates and $1.735 million is funded by external revenue. This is due to a high level of discounts to compliant owners and neutering subsidies than previously expected.

Note 4: South Dunedin Future

12 The South Dunedin Future activity has an operating budget of $1,210 million, of which $1.035 million is funded by rates and $175k is funded by external revenue. The budget reflects the activity’s expansion from a focus only on South Dunedin to city-wide.

13 When the Revenue and Financing Policy was set, only the South Dunedin Future activity was accounted for; the expansion of the activity will be updated in the Policy when it is reviewed.

Note 5: isite Visitors’ Centre

14 The isite Visitors’ Centre has an operating budget of $1.356 million, of which $1.051 million is funded by rates and $302k is funded by external revenue. The budget reflects the forecast decline in the number of cruise ships expected to visit Dunedin over 2026/27.

OPTIONS

15 There are no options.

NEXT STEPS

16 A review of the Revenue and Financing Policy will be completed as part of the development of the 10 year plan 2027-37.

Signatories

Author:	Janet Fraser - Corporate Planner
Authoriser:	Carolyn Allan - Chief Financial Officer

Attachments

There are no attachments for this report.

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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 Annual Plan contributes to the objectives and priorities of the strategic framework. The Revenue and Financing Policy is a key component of the development of the Annual Plan.

Māori Impact Statement

The adoption of Te Taki Haruru Māori Strategic Framework signals Council’s commitment to mana whenua and to its obligations under the Treaty of Waitangi. Mana whenua and mātāwaka will have an opportunity to engage with the Annual Plan consultation process.

Sustainability

The Revenue and Financing Policy considers the overall impact of its funding requirements on the current and future social, economic, environmental and cultural wellbeing of the community.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The Revenue and Financing Policy does not impact on levels of service but provides for how the activities are funded.

Financial considerations

Financial impacts are discussed in the report.

Significance

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

Engagement – external

The Revenue and Financing Policy was consulted on as part of the 9 year plan 2025-34.

Engagement - internal

Staff and managers from across Council have been involved in the development of the draft budgets.

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

4 March 2026

Dunedin Stadium Property Ltd - Debt Repayment Options

Department: Finance

EXECUTIVE SUMMARY

1 The purpose of this report is to present options for a Debt Repayment Plan for Dunedin Stadium Properties Limited (DSPL).

2 In 2024, Dunedin City Holdings Limited (DCHL) asked Council to provide an additional $2 million per annum to Dunedin Venues Management Limited (DVML), to support the operation of the stadium facility.

3 Before deciding on the request, Council engaged Ernst Young (EY) to undertake a review of DVML and DSPL on behalf of the DCC, the purpose of the review being “to ensure that the future operating and financial model of the stadium and related venues is fit for purpose, financially and economically sustainable”.

4 At its meeting on 26 May 2025, Council considered the draft EY report. The report noted that “the stadium is facing increasing costs and it is reaching a point in its lifecycle where some significant upgrades are required”.

5 At the 26 May 2025 Council meeting, it was also noted that a Debt Repayment Policy and a Debt Repayment Plan for DSPL would be provided to Council for consideration, prior to the draft Annual Plan 2026/27.

6 DCHL has developed a theoretical long-term forecast model for DSPL, to determine the level of funding required to meet future capital expenditure and repay debt. The model has assumed that the remaining expected life of the Stadium is 34 years through to 2060, however, with ongoing maintenance, the stadium may have a longer life. A memorandum from DCHL on the forecast model, is provided at Attachment A. Summary financial models are provided at Attachment B.

7 Currently, Council provides an annual payment (share capital) of $2.91 million to support capital expenditure and debt repayment. Two new annual payment options are presented for Council’s consideration, to form the basis of a Debt Repayment Plan.

8 Option 1 proposes increasing the annual share capital funding by $1.25 million in the 2026/27 year, and then increasing it by a further $1.25 million ($2.5 million increase in total) from 2027/28 onwards. Option 2 proposes increasing the share capital funding by $2.25 million per annum from 2026/27 onwards.

9 Both options enable long term debt repayment to at least the fair value of land, estimated to be $51 million at 30 June 2060.

RECOMMENDATIONS

That the Council:

a) Approves option one to provide additional funding (share capital) of $1.25 million in 2026/27, then increasing the additional funding to $2.5 million from 2027/28 onwards to support capital expenditure and debt repayment for the Forsyth Barr Stadium

b) Notes that the agreed option will be used to develop a Debt Repayment Plan for Dunedin Stadium Properties Limited.

BACKGROUND

10 In 2024, DCHL asked the Council to provide an additional $2 million per annum to the stadium to support the operation of the facility.

11 At its meeting on 27 February 2024, Council considered the request and agreed to undertake a review of DVML and DSPL. The purpose of the review was to ensure that the future operating and financial model of the stadium and related venues is fit for purpose, and financially and economically sustainable. The review was timed to be considered as part of the 9 year plan 2025-34 process.

12 Council engaged Ernst Young (EY) to undertake the review, with additional support from Deloitte as and when required. The review commenced in October 2024.

13 At its meeting on 26 May 2025, Council considered the outcome of the review and resolved the following:

Moved (Cr Bill Acklin/Cr Kevin Gilbert):

That the Council:

a) Confirms that DVML would continue to operate as a commercial activity with a view to making a profit.

b) Confirms an increase in event attraction funding to DVML of $1.645 million per annum.

c) Approves a reallocation of $355,000 of the $2 million funding support to DVML as an annual share capital payment for DSPL.

d) Notes that a Debt Repayment Policy would be developed for the Council and DSPL and will be presented to Council prior to the draft 2026/27 Annual Plan.

e) Notes that a debt repayment plan would be developed for DSPL and would be presented to Council prior to the draft 2026/27 Annual Plan.

f) Notes that an Ernst Young implementation plan would be presented to a future Finance and CCO Committee meeting.

g) Notes that the implementation plan would address concerns around community access to DVML facilities.

Motion carried (CNL/2025/097)

14 The funding provided to DVML is for attracting events to Dunedin, it is not for the purposes of supporting capital expenditure and debt repayment.

15 From 1 July 2024, to improve the commercial viability of its tenancy, DSPL reduced its rent on the stadium from $2 million to $1 million and stopped on-charging rates and insurance costs to DVML. Constrained rental income, and increasing operating and capital costs are resulting in forecast deficits. Without additional funding, increased debt will be required to address the deficits.

16 The Council currently provides funding support to DVML and DSPL as follows:

· DVML - Events attraction fund of $2.05 million per annum (service level payment) to assist with attracting events to the stadium, generating an economic benefit for the city.

· DVML – Community access funding of $750,000 per annum (service level payment) to provide financial support to community and not for profit organisations, enabling their use of the Forsyth Barr Stadium and the Dunedin Town Hall.

· DVML – Dunedin Centre funding of $757,000 per annum (service level payment) to manage and operate the Dunedin Centre and Town Hall.

· DSPL – Share Capital funding of $2.91 million per annum, to support capital expenditure and debt repayment.

17 In addition, Council has a rating differential for the Stadium for its general rates and capital value based targeted rates. These were introduced in 2012/13 to moderate the rates burden on the Stadium, by setting the Stadium rates at specified amounts. The initial amount to be collected in the 2012/13 year was equivalent to the estimated total rates that the Council would have collected from the Stadium land if the Stadium had not been built. These were estimated to be $134,000 excluding GST. The rates have since been increased annually by an indexed amount.

18 DSPL debt for the year ending 30 June 2025 totalled $84.6 million. The forecast debt balance for the year ending 30 June 2026 is $84.8 million.

DISCUSSION

19 Forsyth Barr Stadium is a strategic asset that plays a significant role in achieving and promoting the current and future well-being of the community. The attraction of events to the stadium delivers substantial economic and cultural benefits, enhances community engagement, supports local businesses, and provides a wide range of recreational and entertainment opportunities.

20 The stadium has reached a point in its lifecycle where operating and capital expenditure requirements are increasing. Along with reduced rental income and cost recovery, the current financial model is unsustainable, and additional debt is needed to cover ongoing operating and capital costs.

21 A Debt Repayment Policy and a Debt Repayment Plan are being prepared to address this problem. As part of this work, DCHL has developed a long-term forecast model for DSPL, to determine the level of funding required to meet future capital expenditure and repay debt, over the expected life of the Stadium. The model assumptions and financial outcomes are discussed in the memorandum at Attachment A.

22 Key assumptions in the model include:

· The economic life of the stadium is assumed to be 50 years, i.e., to 2060.

· The forecast fair value of the land in 2060 is assumed to be $51 million.

· Annual capital expenditure forecasts are based on the current Asset Management Plan 2026-36, followed by $1.8 million (plus inflation) per annum, being the mean capital spend during the period of the Asset management Plan.

· With continued maintenance, the life of the polymer roofing could be extended to 40 years and beyond. Accordingly, roof replacement has not been included in the forecast model.

· Turf replacement will be required in the 2031/32 year.

23 Note is made that the financial model and its assumptions will be reviewed on a regular basis.

24 In developing a Debt Repayment Policy, debt repayment principles have been provided (below) which support debt repayment planning:

a) DSPL is responsible for managing the stadium in accordance with its Statement of Intent. This includes the prudent management of debt supported by a debt repayment plan based on long-term financial modelling.

b) DSPL’s debt repayment plan shall be managed to ensure at the end of the economic life of the stadium, term loan borrowings do not exceed the fair value of the underlying land asset.

c) DSPL shall report annually to Council on its debt position, including progress against the debt repayment plan and updated long-term debt forecasts.

d) Long-term debt forecasts will be revised with each update of the asset management plan. Asset management plans are reviewed internally on an annual basis and externally every three years.

25 Council is now asked to consider two funding options, with the preferred option being included in a Debt Repayment Plan for DSPL. The options are based on the financial modelling undertaken by DCHL, that has looked at operating revenue and expenses, and capital costs through to 2060, being the estimated economic life of the stadium. The options are discussed below.

OPTIONS

26 Currently, Council provides an annual payment (share capital) of $2.9 million per annum to DSPL, to support capital expenditure and debt repayment.

27 The DCHL memorandum provides three scenarios for the annual payment (share capital) from Council to DSPL, as follows:

a) Repay debt to be less than the estimated fair value of land by 2060 – requires an increase in funding of $1.25 million per annum in the 2026/27, followed by an additional increase of $1.25 million (total $2.5 million per annum) from the 2027/28 onwards.

b) Repay debt to the estimated fair value of the land by 2060 – requires an increase in funding of $2.25 million per annum.

c) Status quo – no change to current funding.

28 The options presented in this report do not include scenario c) above, as this would place DSPL in a financially unsustainable position.

29 Consideration has been given to scenarios a) and b), which are presented as options in this report. In assessing these options, affordability, along with the estimated level of debt and estimated fair value of land at 2060 has been taken into account. Council’s preferred option will inform the development of a Debt Repayment Plan.

Option One – Recommended Option

30 Option 1 provides additional funding (share capital) of $1.25 million to DSPL in 2026/27 (bringing the total share capital payment to $4.15 million), then increasing the additional funding to $2.5 million from 2027/28 onwards (bringing the total share capital payment to $5.4 million per annum).

31 This equates to an additional $83.75 million of share capital for the period from 2026/27 to 2059/60 above the payments currently being made (status quo option).

32 Under this option DSPL debt is estimated to be $37 million by 2060, being less than the estimated fair value of the land of $51 million at 30 June 2060.

33 This option provides some headroom for any unanticipated expenditure not provided for in the financial modelling, e.g., the need to replace the roof before 2060.

34 This option has been included in the draft operating budget for 2026/27, funded by the general rate. It results in an increase of 0.75% in non waters rates in 2026/27 and a further 0.70% increase in non waters rates in 2027/28. It has increased the overall increase in non waters rates in 2026/27 from 6.1% to 6.9%.

Advantages

· Certainty for future of the stadium through to 2060, and preservation of this strategic asset.

· Asset maintenance / renewals can be maintained.

· Availability of headroom to address unanticipated expenditure requirements.

· Debt will be lower than the estimated fair value of land in 2060.

· Reduced interest expense.

Disadvantages

· Financial impact on DCC and ratepayers in funding the increased payments.

· Potential constraint on Council’s ability to fund other expenditure.

Option Two

35 Option 2 provides additional funding (share capital) of $2.25 million per annum from 2026/27 (bringing the total share capital payment to $5.15 million per annum). This equates to an additional $76.5 million of share capital for the period from 2026/27 to 2059/60 above the status quo.

36 Under option 2, DSPL debt is estimated to be $49 million by 2060, being close to the estimated fair value of the land of $51 million at 30 June 2060.

37 This option does not provide head room for any unanticipated expenditure not provided for in the financial modelling.

38 This option would also be funded by the general rate and result in an increase of 1.35% in non waters rates in 2026/27. This option would increase the draft 2026/27 budget for non waters rates from 6.9% to 7.5%. There is no increase in the 2027/28 year.

Advantages

· Certainty for future of the stadium through to 2060, and preservation of this strategic asset.

· Asset maintenance / renewals can be maintained.

· Debt will be close to the estimated fair value of land in 2060.

· Reduced interest expense.

Disadvantages

· Level of contribution does not provide availability of headroom to address unanticipated expenditure requirements.

· Financial impact on DCC and ratepayers in funding the increased payments (noting lower impact than Option 1).

· Potential constraint on Council’s ability to fund other expenditure.

NEXT STEPS

39 Council’s preferred option will be used to inform the development of a Debt Repayment Plan for DSPL.

40 The forecast model will be reviewed on a regular basis.

41 A workshop will be scheduled for Council on Stadium matters, including maintenance.

42 A draft Debt Repayment Policy will be provided to a future Finance and Performance Committee.

Signatories

Author:	Tony Nelmes - Project Accountant
Authoriser:	Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	DCHL Memo - DSPL long term funding model	198
⇩b	DSPL Options - Forecast financial models	201

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision enables democratic local decision making and action by, and on behalf of communities.

This decision promotes the social, economic, 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	☐	☐	✔

Māori Impact Statement

There has been no consultation with Māori on the contents of this report.

Sustainability

There are no implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

Any decision made will be provided for in the Annual Plan 2026/27, and in the 10 year plan 2027-37.

Financial considerations

Any increase in the annual payment of share capital will need to be funded by rates.

Significance

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

Engagement – external

There has been engagement with DCHL.

Engagement - internal

There has been no internal engagement.

Risks: Legal / Health and Safety etc.

There may be reputational risk for the DCC if it decides not to increase the annual payment of share capital, along with the potential loss of a strategic asset for the city.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

There are no implications for Community Boards.

Council

4 March 2026

Engagement Approach - Annual Plan 2026/27

Department: Civic

EXECUTIVE SUMMARY

1 This report recommends approaches to community engagement for Council’s draft Annual Plan 2026/27 (the draft Plan) and early engagement on the upcoming 10 Year Plan 2027-37 (the 10 Year Plan).

2 The draft Plan proposes no significant changes to year two of the 9 Year Plan 2025-34 (the 9 Year Plan), and there are limited material differences requiring specific feedback. Consequently, this report recommends a focused and proportionate engagement approach for the draft Plan, rather than inviting broad feedback.

3 Conversely, the development of the 10 Year Plan will be a substantial undertaking, and it is recommended to have a significant early engagement process. Pre-consultation is planned for mid-April to May 2026, and will be a chance for the community to give broad feedback on what is most important to them.

RECOMMENDATIONS

That the Council:

a) Approves the recommended engagement approach for the Annual Plan 2026/27, as outlined in this report.

b) Amends the 2026 Council meeting schedule, as outlined at Attachment A.

c) Approves the recommended early engagement approach for the 10 Year Plan 2027-37, as outlined in this report.

BACKGROUND

4 The Local Government Act 2002 (the Act) sets out provisions for preparing and consulting on Annual Plans.

5 Section 95 of the Act includes the following provisions:

(1) A local authority must prepare and adopt an annual plan for each financial year.

(2) Subject to subsection (2A), a local authority must consult in a manner that gives effect to the requirements of section 82 before adopting an annual plan under this section.

(2A) Subsection (2) does not apply if the proposed annual plan does not include significant or material differences from the content of the long-term plan for the financial year to which the proposed annual plan relates.

6 Section 82 of the Act sets out the principles of consultation, including allowing local authorities to consult in a manner that it considers, in its discretion, to be appropriate. The Special Consultative Procedure is not required to be used for an Annual Plan.

DISCUSSION

Engagement on the Annual Plan

7 The draft Plan is an update of year two of the 9 Year Plan. The draft Plan proposes no significant changes to the 9 Year Plan and there are limited material differences requiring specific feedback. Consequently, a focused and proportionate engagement approach is recommended for the draft Plan.

8 It is recommended to use a mix of online and printed material, as well as opportunities for face‑to‑face conversations, which has been successful in reaching wider and more diverse parts of the community in past engagements.

Engagement activities

9 The mixed method engagement approach uses different engagement tools for different engagement purposes and for different community stakeholders.

10 In planning the engagement approach, staff took into consideration our partnership with mana whenua, as well as community diversity and approaches to reaching underrepresented stakeholder groups.

11 Staff also considered accessibility of both print media and online social media platforms.

12 Taking the above considerations into account, the tools for community engagement will include:

a) Digital content on the DCC website

b) Digital content shared on social media platforms

c) Printed material (consultation document)

d) In-person opportunities (hearings)

13 A succinct consultation document will be printed and distributed to DCC service centres.

14 In addition to the consultation document there will be a consultation webpage, which will include the information in the consultation document, and links to an online submission form and supporting information. Supporting information will include:

a) More detailed financial information (e.g. draft financial statements and funding impact statements)

b) A link to the 9 year plan 2025-34 on the DCC website

Key messages

15 Key messages include providing context and updating the community on changes that we are consulting on, including finances, noting there are limited topics requiring specific feedback. The engagement material will encourage people to express their views to Council only in relation to material changes within the draft Plan.

16 The engagement material will also signal the upcoming pre-consultation on the 10 Year Plan, so that the community is aware of when and how they can share broader views and feedback to Council.

17 The consultation material will note the context the draft Plan has been developed in, i.e., against a backdrop of significant legislative reform, with rates capping on the horizon.

Capturing community feedback

18 The consultation period will run from 30 March to 12 noon on 29 April 2026.

19 Online submissions via an online form will be encouraged. There will be links in all promotional material that direct people to the online form. There will also be an option to provide written feedback, with submissions accepted if received via DCC service centres, post or email.

20 Comments on social media will not be treated as formal submissions, but sentiment will be tracked by staff and a summary will be included in a report for Council consideration.

21 Submitters will have an opportunity to speak directly to Council at its meeting on 13 May 2026.

22 Submission feedback will be collated, analysed, and reported back to Council for its consideration at the budget update meeting scheduled for 28 May 2026.

Key milestones

23 The recommended approach requires changes to Council’s meeting schedule (additions and deletions). These changes are set out in Attachment A.

24 The key milestones of the recommended approach are:

Milestone	Timing
Adoption of consultation document	Council meeting on Thu 26 March 2026
Focused consultation on draft Annual Plan	30 March to 29 April 2026
Hearings on draft Annual Plan	Council meeting on Wed 13 May 2026
Annual Plan budget update	Council meeting on Thu 28 May 2026
Annual Plan adoption	Council meeting on Thu 25 June 2026

Pre-consultation on the 10 Year Plan

25 Early engagement is not required by legislation, but it provides an opportunity to communicate with the community and raise awareness of issues, as well as hear community views at a stage where they can help shape the draft 10 Year Plan before formal consultation in early 2027.

26 It is proposed for the 10 Year Plan to have a significant early engagement process. Pre-consultation is planned for mid-April to end of May 2026, and will be a chance for the community to give broad feedback on what is most important to them.

27 Early engagement would encourage feedback from the community, with key messages around understanding community priorities and what is most important, while acknowledging the current context, including significant legislative reform and proposed rates capping.

28 Sending a pre-consultation prompt, in the form of a link to an online survey and ‘comments wall’, with rates bills is being explored as a simple way to reach more people and capture broader views from a range of topics, including whether to do a full review of the options relating to Smooth Hill. Rates bills will be delivered in tranches between 14 April and 5 May 2026.

29 Pre-consultation with mana whenua and mātāwaka partners would be through existing forums (i.e., Te Pae Māori and hui with Aukaha).

30 Additional outreach will be undertaken to reach residents who are not ratepayers. This may include digital advertising, community networks, youth engagement channels and in person engagement.

31 It is proposed that a four to six question survey be developed using three to five closed questions and one open question. The ‘comments wall’ would allow for views on a range of topics/themes, with the ability for other commenters to upvote and respond.

32 The results of the pre-consultation will give a sense of how to target formal consultation for the 10 Year Plan.

OPTIONS

33 Council could choose not to adopt the proposed engagement approaches. However, no alternative approach has been identified that better aligns with legislative requirements and proportionality. Accordingly, no alternative options are presented.

NEXT STEPS

34 If approved, staff will develop Annual Plan engagement collateral for the draft Plan. A cross Council working group will be engaged to undertake this work and deliver the Annual Plan engagement approach.

35 A Consultation Document on the draft Annual Plan 2026/27 will be presented to Council for adoption at its meeting on 25 March 2026.

36 If approved, staff will implement an early engagement programme for the 10 Year Plan.

37 Following the early engagement programme, a report will be presented to Council, summarising the feedback received from the community.

Signatories

Author:

Janet Fraser - Corporate Planner

Authoriser:

Nicola Morand - Manahautū (General Manager Community and Strategy)

Sandy Graham - Chief Executive

Attachments

	Title	Page
⇩a	Changes to 2026 Council meeting schedule	209

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision enables democratic local decision making and action by, and on behalf of communities.

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 Annual Plan and 10 Year Plan contribute to all of the objectives and priorities of the strategic framework and provides a focus for decision making and coordination of the Council’s resources, as well as a basis for community accountability.

Māori Impact Statement

The adoption of Te Taki Haruru – Māori Strategic Framework signals Council’s commitment to mana whenua and to its obligations under the Treaty of Waitangi. Engagement with mana whenua and mātāwaka is included in the proposal outlined in this report.

Sustainability

Engagement as proposed in this report will provide an opportunity for the community to express their views of the DCC’s work towards sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

Engagement as proposed in this report is an opportunity for the community to express their views.

Financial considerations

Engagement costs will be met from within existing budgets.

Significance

Consultation and engagement will be delivered in alignment with the principles outlined in Council’s Significance and Engagement Policy.

Engagement – external

This report discusses an approach for external engagement on the Annual Plan and 10 Year Plan.

Engagement - internal

Engagement planning has been prepared with input from staff, including community engagement practitioners, across DCC.

Risks: Legal / Health and Safety etc.

There are no identified risks with the recommended approach.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have the opportunity to submit and be heard as part of the Annual Plan engagement.

Council

4 March 2026

Proposed Event Road Closures

Department: Transport

EXECUTIVE SUMMARY

1 The DCC has received temporary road closure applications relating to the following events:

i) 2026 Rally Otago

ii) Anzac Day Service and Parades – Mosgiel and Outram

iii) Hyde Street Party

2 This report recommends that Council approves the temporary closure of the affected roads.

RECOMMENDATIONS

That the Council:

a) Resolves to close the roads detailed below (pursuant to Section 319, Section 342, and Schedule 10 clause 11(e) of the Local Government Act 1974 (LGA 1974)):

i) 2026 Rally Otago

Media Day

Wednesday, 8 April 2026

10.00am to 4.00pm

· Silverstream Valley Road and Pineapple Track carpark

Ceremonial Rally start

Friday, 10 April 2026

12.00pm to 9.00pm

· Octagon Central Carriageway, between George Street and Princes Street

3.00pm to 9.00pm

· The Lower Octagon, between George Street and Princes Street

· Lower Stuart Street, between the Octagon and Lower Moray Place

· Access will be maintained on Bath Street

SS 1 Waipori Gorge

Saturday, 11 April 2026

6.00am to 11.30am

· Waipori Gorge Road, from CDC/DCC boundary to Koefords Road

SS 8 Super Stage

Saturday, 11 April 2026

9.00am to 9.00pm

· Sturdee Street, between Wickliffe Street and Halsey Street

· Halsey Street, between Sturdee Street and Ward Street

· Ward Street, between Halsey Street and Wickliffe Street

· Wickliffe Street, between Ward Street and Jutland Street

· Jutland Street, between Wickliffe Street and Akaroa Street

· Ward Street Overbridge, between Anzac Avenue and Ward Street

Service Park

Saturday, 11 April 2026

2.00pm to 7.00pm

· Ice Stadium carpark

SS 9 Otokia

Saturday, 12 April 2026

6.15am to 11.45am

· McLaren Gully Road, between rapid 108 McLaren Gully Road and Big Stone Road

· Big Stone Road, between McLaren Gully Road and Otokia Kuri Bush Road West

· Otokia Kuri Bush Road West, between Big Stone Road and Henley Road

· Henley Road, between Otokia Kuri Bush Road West and Christies Gully Road

· Christies Gully Road, between Henley Road and Otokia Kuri Bush Road East

· Otokia Kuri Bush Road East, between Big Stone Road and Dicksons Road

· Dicksons Road, between Otokia Kuri Bush Road East and Brighton Taieri Mouth Road

SS 16 Kuri Bush

Saturday, 12 April 2026

1.00pm to 6.00pm

· Otokia Kuri Bush Road East, between Brighton Taieri Mouth Road and Big Stone Road

· Big Stone Road, between Otokia Kuri Bush Road East and rapid 141 Big Stone Road

Rally Finish

Saturday, 12 April 2026

1.00pm to 6.00pm

· Brighton Domain

ii) Anzac Day Service and Parades – Mosgiel and Outram

Saturday, 25 April 2026	8.00am to 12.00pm	· Church Street, between Factory Road and Cargill Street
Saturday, 25 April 2026	10.50am to 11.30am	· Hoylake Street, from Skerries Street to end of cul-de-sac

iii) Hyde Street Party

Saturday, 18 April 2026	5.30am to 8.30pm	· Albany Street, between Grange Street and Clyde Street
Saturday, 18 April 2026	5.30am (on Saturday) to 12.00pm on Sunday, 19 April 2026	· Hyde Street, between Albany Street and Frederick Street

BACKGROUND

3 Council’s Dunedin Festival and Events Plan supports the goal of a successful city with a diverse, innovative, and productive economy and a hub for skill and talent.

4 The areas proposed to be used for these events are legal roads and can therefore be temporarily closed to normal traffic if statutory temporary road closure procedures are followed. The procedures are set out in Section 319 of the LGA 1974 and give Council the power to stop or close any road (or part of a road) within the parameters of Section 342 and Schedule 10 of the LGA 1974 (Schedule 10 is included as Attachment A).

5 These procedures include:

· Consultation with the New Zealand Transport Authority Waka Kotahi and the Police.

· Public notice being given of the proposal to close any road (or part of a road), and public notice of a decision to close the road.

· Council being satisfied that traffic is not likely to be unreasonably impeded.

6 A resolution of Council is required where a proposal to temporarily close a road relates to public functions.

7 Council is required to give public notice of its decision. This notice will be published after this meeting and prior to the event, if approved.

DISCUSSION

Consultation and Notification

8 The Police and the New Zealand Transport Authority Waka Kotahi have no objections to the proposed road closures.

9 On Saturday, 31 January 2026 the proposed temporary road closures were advertised in the Otago Daily Times (Attachment B) with a deadline for feedback.

10 Schedule 10 clause 11(e) states a road cannot be closed more than 31 days in the aggregate in any one year. This limit will not be exceeded by the approval of the proposed temporary road closures.

Traffic Impacts

11 The event locations of these events have had identical road closures for the same, or similar event(s) in prior years without causing unreasonable delays to the travelling public.

12 Emergency services and public transport services will be managed through the temporary traffic management process.

13 The Temporary Traffic Management Plan process ensures that other issues such as temporary relocation of certain parking (e.g. taxi, mobility and Authorised Vehicles Only) are managed.

OPTIONS

14 Note any amendment to this report’s recommendations cannot be implemented without further consultation with the affected parties, New Zealand Transport Agency Waka Kotahi, the Police, and verifying that traffic impacts are acceptable.

Option One – Recommended Option

15 That the Council closes the sections of road as recommended in this report.

Advantages

· Roads can be closed, and the event will be able to proceed.

· The closures will assist in realising the economic, social, and cultural benefits associated with the events.

Disadvantages

· There will be temporary loss of vehicular access through the closed areas. However, there are detours available, and safety can be assured using temporary traffic management.

Option Two – Status Quo

16 That the Council decides not to close the roads in question.

Advantages

· There would be no detour required for the travelling public, and the roads would be able to be used as normal.

Disadvantages

· The events would not be able to go ahead, and the benefits of the events would be lost.

NEXT STEPS

17 Should the resolution be made to temporarily close the roads, Council staff will accept the temporary traffic management plans that have been received for the events and notify the public of the closures.

Signatories

Authoriser:

Jeanine Benson - Group Manager Transport

Scott MacLean - General Manager, City Services

Attachments

	Title	Page
⇩a	Local Government Act 1974, Schedule 10	217
⇩b	ODT Advert - 31 January 2026	222

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision promotes the social 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	✔	☐	☐

Events contribute to the Strategic Framework. Events contribute to the Economic Development Strategy, the Social Wellbeing Strategy. There is a Festival and Events Plan 2018-2023.

Māori Impact Statement

Mana whenua have not been directly engaged with in relation to these road closures.

Sustainability

There are no implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no implications, as the decision is a regulatory one and there are no direct costs to Council.

Financial considerations

There are no financial implications. The cost of the proposed road closure is not a cost to Council.

Significance

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

Engagement – external

There has been external engagement (as required by the LGA 1974), with the Police and New Zealand Transport Agency Waka Kotahi. Affected parties were notified and provided a time period for feedback.

Engagement - internal

There has been engagement with DCC Events and Transport. There is support for the events to proceed.

Risks: Legal / Health and Safety etc.

There are no identified risks should the recommended resolution be made.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

There are no implications for Community Boards.

Mayor	Mayor Sophie Barker
Deputy Mayor	Cr Cherry Lucas
Members	Cr John Chambers	Cr Christine Garey
	Cr Doug Hall	Cr Marie Laufiso
	Cr Russell Lund	Cr Mandy Mayhem
	Cr Benedict Ong	Cr Andrew Simms
	Cr Mickey Treadwell	Cr Lee Vandervis
	Cr Steve Walker	Cr Brent Weatherall