Hastings District Council has decided on a 19 per cent average rates increase from July instead of a 25 per cent hike, and has also opted to keep Frimley Pool open for at least another year.
The council met on Tuesday to make decisions on its draft Long Term Plan (LTP), which it will officially adopt on June 27.
A 25 per cent average rates rise was initially proposed for the first year of the LTP starting in July, but councillors decided to reduce that figure to a 19 per cent rise.
It is similar to neighbouring Napier City Council which recently reduced its proposed rates increase, from July, from an average of 23.7 per cent down to 19.9 per cent.
The biggest topic of concern from the 700 public submissions on Hastings’ draft LTP was people’s inability to cope with an average 25 per cent rates hike.
Councillors unanimously agreed on an average 19 per cent rise, which includes a cyclone recovery rate of eight per cent and base increase of 11 per cent.
The LTP predicts the council, which is currently almost $400 million in debt, is on track to reach over $700 million in debt by 2030.
Hastings Mayor Sandra Hazlehurst said it was important to continue advocating for more financial support from the Government to help with the council’s huge cyclone recovery costs.
“I know that every $10 million that we get from the Crown is [equivalent] to a 1 per cent reduction on our rates.
“So this is critically important that as a region we stand together with the Government, and seek more support for our recovery to lessen the burden on the ratepayer.”
Hastings Council deputy chief executive Bruce Allan said passing on a 19 per cent average rates increase, instead of a 25 per cent rates increase, came at a long-term cost to council.
“Council will borrow more to enable that decision to take effect.
“Council will be borrowing more to fund operations, there will be larger rates increases for longer [in future years], and there will be more difficult years ahead.”
The council was proposing to close the 57-year-old pool in its draft LTP, citing a saving of about $250,000 per year.
However, councillors have now opted to keep it open for the 2024/25 season - subject to operational fitness - as more investigation is done around whether it should close.
A decision on its future will then be made in the 2025/26 annual plan.
The council heard the pool would cost about $200,000 to decommission.
The council says operating the pool currently costs $32 per user, on average, but entry is only $6 for adults, $5 for children and $3 for under-5s – meaning the council covers the balance.
The facility, which opened in 1967 and includes three pools, is open from November to February and the council says there has been declining usage over the years.
If the pool is closed in future, Frimley Park will likely be expanded and cover the area.
Councillor Malcolm Dixon said the community understands the message to “use it or lose it” during the next summer season.
Other pools around Hastings include Splash Planet, the new Hawke’s Bay Regional Aquatic Centre and Flaxmere Pool.
Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.