Organisational overview
Our Annual Plan describes 34 service measures, each of which has one or more specific targets. In response to advice from Audit NZ, we have added two further measures for River and Flood Resilience and we are reporting on those this quarter.
How did we do for the period 1 July to 31 December 2025?
In late 2025, the backdrop to delivery was central government proposals to reform local government and the legislation that it operates within. During this quarter, draft legislation and proposals were released with the potential to significantly change Council governance structures, regulations and funding models. Further legislation was passed under urgency affecting the delivery of regulatory functions within Environmental Regulation and Protection. A team of senior staff was stood up to provide advice to Councillors on the implications of change and develop submissions in quarter three. Kaimahi continue to stay focused on delivering for our communities under existing legislation, while ensuring readiness for transition should the proposals progress.
Service performance
Overall, organisational performance is progressing well. At the end of quarter two, 34 of 36 service measures are on track to be achieved.
- As a result of legislation, work is paused on notifying the Regional Policy Statement, meaning service measure 1 cannot be progressed.
- Service measure 2 (processing resource consent applications within statutory timeframes) will also not be achieved at the new target of 95% for 2025/26 (up from the 50% target for 2024/25) despite improved processing times – 90% of recent decisions are within the timeframe.
Financial performance
The organisation ended the second quarter with expenditure $12.4 million below budget, $11.4 million more than the $1 million budgeted surplus.
Drivers of the reduced expenditure include:
- $4.7 million (Bus and ferry services), due to lower bus contract payments and delays to some projects, including the PT Futures network planning programme
- $2.7 million (Regulatory framework service), due to neither the debt nor the funds to service the debt being required when legislation paused Resource Management Act planning work
- $1.9 million (Flood and river resilience service) - with delays due to weather and river events
- $3.1 million (across all core services and enabling services), due to lower general operating costs and project-related spending.
Across all elements above, around $2.1 million relates to higher than anticipated vacancies across the organisation.
Revenue was also around $2 million below budget, largely due to lower than anticipated cost recovery from consenting and compliance services.
We expect that there will continue to be significant variance to budget at year-end and more information can be provided next quarter.
Performance highlights for quarter two:
- Welcoming the new Council following the local government elections on 11 October 2025.
- Securing co-funding of $21.5 million for nine flood resilience projects across the region.
- Successfully launching contactless payment for the National Ticketing Solution Motu Move.
- A 7% growth in patronage on Route 7, Halswell/Queenspark.
- Responding to community feedback, and allowing passengers to travel with pets on Metro services.
- Proactively working with rural sector organisations and other agencies to address nitrate in drinking water.
- The Coast and Harbours section, that ensures safe navigation for commercial and recreational boaties, passing the ISO 9001 external audit, helping keep our community safe and our environment protected.
- A new predictive water-quality model, providing a more accurate picture of swimming water quality for the community.
- Reaffirming our commitment to working with mana whenua with the signing of an updated Tuia Agreement in December 2025 by Council and Papatipu Rūnanga within Waitaha Canterbury
Core Services Performance Report | Pūrongo Ratonga Matua
The Core Services Performance Report | Pūrongo Ratonga Matua for the period 1 July – 30 September 2025 was received by the Council at their meeting on 19 November 2025.
Financial performance
| Revenue | Expenditure | Surplus | |
|---|---|---|---|
| Actual | $163.55M | $152.10M | $11.44M |
| Budget | $165.54M | $164.54M | $1.00M |
| Variance | ($2.00M) | ($12.44M) | $10.44M |
| % Variance | -1.21% | -7.56% |
Council ended the second quarter of the 2025/26 financial year with a surplus of $11.44 million, significantly ahead of the budgeted surplus of $1.0 million. Any surplus at the end of the financial year will be used to replenish reserves unless directed otherwise by Council.