“Since being elected, we have prioritised getting the best value from every ratepayer dollar spent – reducing costs while continuing to deliver for our community.”
Tauranga City Council adopted its 2025/26 Annual Report at last week's Council meeting, marking the halfway point of the current Council term and highlighting progress on major infrastructure, community facilities and city centre transformation while maintaining a strong focus on affordability and financial discipline.
The Annual Report covers activity from 1 July 2025 to 30 June 2026. Total debt, including off-balance-sheet debt related to the Tauranga System Plan Infrastructure Funding and Financing scheme, finished the year $199 million below budget at $1.5 billion. Council also delivered both operating and capital expenditure under budget. A rating surplus of $10.3m helped further reduce the rates people pay today and pay down debt.
The city's capital investment programme of $371.3 million included significant progress on several major milestones including the Pāpāmoa East Interchange, continued delivery of the SH29 Tauriko Enabling Works, and the Opal Drive Pump Station.
Council also continued transforming the city centre through Te Manawataki o Te Papa, with $84.8 million invested in the project during the year. The Tauranga Art Gallery reopened in November 2025, while the new library and community hub He Puna Manawa opened last week on time and under budget.
Community facilities and recreation spaces also saw significant investment with the opening of the Merivale Community Centre, the delivery of Tauranga's first artificial sports turf at Links Avenue Reserve, playground upgrades, wharf and boat ramp improvements and restoration work on the Ōropi Mountain Bike Trails.
Mayor Drysdale said Council would continue balancing investment in growth with affordability as work continues on the 2027-2037 Long-term Plan.
"There is a lot to do in the coming year. My Councillors and I are determined continue to drive prudent financial management, balancing delivery with affordability, and sustaining this year’s momentum.
“We continue to look at ways at how we can better connect, listen and engage with our community, and remain focused on lifting performance and delivering better outcomes for the people of Tauranga.”
Mayor Drysdale also acknowledged tragic events that impacted Tauranga on 21 and 22 January 2026, with extreme rainfall causing widespread damage across the city and Western Bay of Plenty sub-region, with roads and infrastructure affected and multiple landslides, including on Mauao.
“Tragically, eight lives were lost across the sub-region following the severe weather event, and our thoughts remain with the families and loved ones of those who died, as well as with everyone affected.
“In the face of these tragedies, we saw councils, iwi, emergency services and community organisations working together in a coordinated response, and people right across the city supporting each other in practical and meaningful ways. That sense of community made a real difference in incredibly challenging circumstances.”
The financial implications of Tauranga City Council’s response and recovery to the severe weather event are also reflected in this Annual Report and will continue into the coming year as recovery work progresses.
Alongside this, Mayor Drysdale says Council remains committed to implementing the Organisational Improvement Programme at pace in response to the Davison Review into the Mauao landslide. The programme will drive the improvements required across the organisation, including strengthening risk management and organisational culture.
Key financial highlights for 2025/26
• Total capital expenditure: $371.3 million
• Total debt: $1.5 billion, $199 million below budget
• Total revenue: $622 million
• Total operating expenditure: $572 million
Projects completed 2025/26:
- Progress continued on Te Manawataki o Te Papa, paving the way for the opening of He Puna Manawa in October 2026.
- Pāpāmoa East Interchange opened
- Tauranga Art Gallery reopened after redevelopment
- Merivale Community Centre opened
- Tauranga's first artificial turf delivered at Links Avenue Reserve
- Nearly 8km of water pipes replaced
- More than 216,000m² of roads resurfaced
- Ōropi Mountain Bike Trails restored