Hastings District Council reveals 8.5 per cent rates rise, other councils to announce rises

Hastings District Council has voted to skip public consultation this year on its Annual Plan.

Hastings District Council (HDC) has revealed plans for a large rates hike of 8.5 per cent from July, while ruling out public consultation on its plans for the coming year.

Other councils around Hawke’s Bay are also expected to announce their proposed rates increases in the coming weeks for the upcoming 2023/24 council year (which begins in July).

HDC has cited the impact of Cyclone Gabrielle, high inflation costs and the purchase of the Tomoana Hawke’s Bay Showgrounds as three main factors for its proposed rates jump.

For a homeowner whose current rates bill is around $2800 per annum, it will mean an extra $238 per year on their bill, or roughly an extra $5 per week.

HDC shared its proposed rates increase (8.5 per cent) during a meeting on Tuesday, which was above the projected 5.7 per cent included in its Long Term Plan.

That increase of 8.5 per cent could still change, as the 2023/24 Annual Plan is yet to be finalised and adopted.

However, councillors voted that the Annual Plan would not be open for public consultation this year.

Common practice is to put a draft Annual Plan out for public consultation, but the council opted against that process largely due to the uncertainty caused by the cyclone.

“Ordinarily, the council would consult the community on work priorities and new projects for the coming year via its Annual Plan. The 2023/24 year is different in a number of ways,” council papers read.

“Given the impacts of the cyclone, the 2023/24 work programme is still in a state of significant uncertainty, and therefore any conversation around alternative budget considerations with the community would be adding little value.

“The proposed budget is essentially the Long Term Plan Year 3 budget (5.7 per cent), with further allowance for the inflationary pressures being felt across council activities to set a budgeted increase in rates revenue for the coming year of 8.5 per cent, which does not trigger any consultation requirements as nothing fundamentally new requires community discussion.”

HDC approved a 6.9 per cent rates increase in 2022, a 6.9 per cent increase in 2021, and a 1.9 per cent increase in 2020.

Hastings District was severely impacted by Cyclone Gabrielle on February 14, including widespread destruction to bridges, roads and hundreds of homes and buildings - with a costly recovery ahead.