Hastings District Council to discuss proposed average rates rise of 25 per cent - largest of the Hawke's Bay councils
The Hastings District Council will this week discuss a proposed average rate rise of 25 per cent, which is the largest of all Hawke’s Bay
The Hastings District Council will meet on Thursday to decide whether or not it takes its Long Term Plan for 2024-2034 and the proposed 25 per cent to public consultations.
It comes at a time when local authorities around the country are facing increasing financial pressure. Recently the Napier City Council agreed to consult with the public about a proposed 23.7 percent increase for 2024/45, while the Central Hawke’s Bay District Council (CHBDC) has suggested 20 percent and the Hawke’s Bay Regional Council 19.6 percent.
Hastings District Council has mounting debts, with the current total sitting at $400m, which sees the local authority paying $16m in interest per year alone. Add to that are the Council's growing Cyclone Gabrielle recovery costs, which include bridge, road and other infrastructure rebuilds.
In an agenda released ahead of Thursday’s meeting, it has been proposed that a rates rise of 25 percent followed by 15 percent rate increase the year after and a 10 percent increase in year three.
The agenda says that despite some funding from Central Government, the net cost to Hastings District ratepayers is unprecedented to the tune of $230m plus interest.
This is proposed to be funded over a 16-year term. The first year average rates rise of 25 percent is made up of a 17 percent base cost increase plus eight percent first step to fund Cyclone Gabrielle. The second year increase of 15 percent includes a 9 percent base cost increase and a six percent second step to fund Cyclone Gabrielle. The third year proposed increase of 10 percent does not include a Cyclone Gabrielle component.
Hastings mayor Sandra Hazlehurst says this is an infrastructure delivery budget.
“We are a district in recovery from Cyclone Gabrielle, rebuilding a resilient transport network as well as maintaining and investing in quality water infrastructure now and for the future."
The cyclone-recovery rate would enable the continued repair and replacement of the transport network and pay for Council’s contribution to the Category 3 Voluntary Buy-out Programme.
“Our transportation network was severely damaged through the cyclone, at a cost of $950 million. There were 13 bridges destroyed needing permanent replacements, and 80 more have structural defects. More than 200 slips on the roading network require significant engineered repair, and substantial work is also needed to install permanent culverts."
“Rebuilding our roads and bridges is essential for the economic and social wellbeing of our district and our region. Our primary sector is the engine room of our economy and quality infrastructure is vital to support our food and fibre industry."
“We are working with the Government to seek as much funding support as possible, to reduce the burden on our rate payers. This partnership with the government is critical for our recovery.”
Funding for cores services would be focused on non-cyclone road maintenance, the operation and improvement of three waters services and new infrastructure, and continuing to look after Council facilities, including parks, streets, community centres and libraries, Hazlehurst said.
“This plan provides for a high level of service to ensure our infrastructure and services meet the needs of our people, and replacing core infrastructure in a timely manner so we don’t land up with costly, emergency repairs, in a way that accommodates our growing district.”
Hazlehurst said: “I know this rate increase will be difficult, particularly for our people on low fixed incomes, but what we have been through over the past year and cost increases leave us with very few choices.
“That is why it is so important that you give us your feedback on this plan around the options we do have.”
Councillor Michael Fowler has led a working party which has closely scrutinised the finances to identify savings and reduce costs where possible.
“We have been through every part of the budget to look at where we can make cost savings, including what projects can be delayed to help reduce the rates burden, particularly in the next three years.
“Our budget projections focus on sustainably building back our cyclone damaged infrastructure without imposing a large cost burden on future generations.”
The agenda for this week’s meeting can be found at https://hastings.infocouncil.biz/Open/2024/04/COR_18042024_AGN_5804_AT.PDF
Once adopted, the full consultation document outlining costs, projected expenditure, and priorities for investment will be available online from Friday, April 19, for the community to read and give feedback on.
More to come
