Hastings ratepayers asked to choose between two different rate rises

Hastings District Council is asking ratepayers to choose between two rate increase options.

Ratepayers in Hastings are being asked to choose if they would like a larger or smaller rate rise in 2026.

The choice comes with a catch – the smaller rate rise would require the council to borrow additional money to afford it.

Hastings District Council adopted its draft annual plan for 2026/27 at its meeting on Wednesday.

It proposed two options to go out for consultation.

One is a 5.9% rate increase that the council said would keep costs more affordable now but would require borrowing to cover expenses, returning to a balanced budget the following year.

The second option is a 9.1% increase, with no additional borrowing.

A council spokesperson said the second option would strengthen the council’s financial position sooner and reduce overall debt.

The council’s Long-Term Plan had forecast a rate increase of 10% and an operating deficit of $8.4 million for 2026/27.

Mayor Wendy Schollum said both options reflected the work that had gone into bringing the projected increase down.

She said the reduction to a 5.9% increase was achieved through $3m of saving on operations, with buying and delivery efficiencies and higher external funding for the cyclone recovery programme.

“A key part has been accelerating cyclone recovery projects, particularly bridges and culverts, so we can secure higher levels of Government funding. That has reduced the pressure on ratepayers by about $48m, while ensuring we continue to rebuild critical infrastructure,” she said.

Cyclone recovery and infrastructure investment remain a major focus for the council.

“For some, the cyclone may feel like it’s behind us, but the recovery work is still very real across our district – this plan ensures we keep that momentum going.”

She said there was no “easy option” and that was the reality councils were facing right across the country.

“That’s why it’s so important we hear from our community. This is about finding the right balance between keeping rates affordable, funding our continued recovery, and continuing to invest in the services and infrastructure that support our quality of life and local economy.

“I encourage everyone to look at the options, think about what matters most to them and their whānau, and make a submission. Everyone’s voice genuinely matters.”

Submissions open on March 30 and close on May 15. Hearings for those who wish to speak to their submission are scheduled to begin on June 10.

LDR is local body journalism co-funded by RNZ and NZ On Air.