Annual Plan 2025/26

The Chatham Islands Council adopted the 2025/26 Annual Plan on Thursday 19 June 2025.

This Plan builds on our Long-Term Plan 2024-34 and reflects our shared vision for a resilient, thriving community. While we’ve made good progress on several fronts, the reality is that our Islands are still working to get the basics in place. That includes reliable shipping, clean water, functioning waste systems, safe roads, and enough housing – all of which are essential for our community to grow and prosper.

We’ve all felt the impact of challenges like the unreliable shipping service and cost-of-living pressures. Despite this, our small but committed Council team has continued to keep essential services running with support from contractors and transitioning from key partners like Canterbury Regional Council to Auckland Council into the future.

The reality is, delivering even the most basic services here costs significantly more than on the mainland. Our small ratepayer base can’t cover it all, and we rely heavily on Crown funding to make ends meet. That funding, however, is limited and uncertain – making long-term planning difficult and reducing our ability to invest in things like housing, infrastructure and economic development.

We’re very aware that rate increases are tough, especially with high inflation and rising costs across the board. But like other councils across the country, we face growing costs and new responsibilities. Last year, Council agreed to a modest increase above inflation to help close the funding gap – meaning an average rates increase this year of around 7.25%.

We’ve also updated the district’s property values, with the average home now valued at $439,000 (a 34% increase since 2021). What you pay in rates will depend on how much your property’s value has changed compared to others.

The year ahead will be a turning point for us. Council will need to make tough decisions about which services are essential, which can be done differently, and which may need to stop altogether if funding isn’t there. The Crown has made it clear that all councils need to “get back to basics.” For us, that means getting up to basics – ensuring we can deliver core services well and affordably.

Our focus will be on:

• Prioritising the services you need most
• Being financially responsible and transparent
• Cutting waste and unnecessary spending
• Making sure every dollar counts.

Unlike any other council in New Zealand, we have limited local income and are dependent on central government funding. We’re expected to meet the same legal obligations as bigger councils, but with far fewer resources.

That’s why from 1 July 2025, we’ll begin a formal amendment to our Long-Term Plan. This will allow us to reset how we budget and deliver services, and ensure our operations are financially sustainable for the future. Through this process, we will:

• Introduce zero-based budgeting, where every expense must be fully justified
• Sharpen our focus on core statutory services
• Review non-core services to determine what’s affordable and worth continuing
• Introduce fairer user-pays charges where appropriate
• Fix long-standing regulatory compliance issues
• Tackle our responsibilities around water, waste and infrastructure

Work closely with iwi, imi, central government and our community to co-design better services and secure the funding needed.

We’re committed to doing this openly and together – because we know that only by working alongside the Crown, our community, and our partners, can we build a strong future for the Islands.

Download the Annual Plan 2025/26

Download previous annual plans