Public consultation starts Monday 31 March (continuing until 2 May) for the HB Regional Council’s Annual Plan for 2025/26.

The good news headline is that the proposed average rate increase will be 9.9% as opposed to the 18.3% average projected in the Three-Year Plan adopted in July 2024. The reduction comes from cutting some operational costs and funding some work differently.

For example, to bring rates down Council is proposing:

• $4.0 million of savings through cutting operational costs and staff numbers;
• $2.5 million of rate savings by using non-rate sources of funding. This includes selling some low-risk carbon credits gained through our forestry plantings to help mitigate the impact of climate change; and
• Using the remainder of the special dividend from the Council’s investment company (HBRIC) to fund one-off additional costs.

Council Chair Hinewai Ormsby comments: “We are setting ourselves up – reducing budgets, refining policies, and reprioritising effort – so we can deliver a significant flood resilience infrastructure and even more importantly prepare for the bigger conversations and costs we need to reimagine flood resilience and water shortage resilience.”

HBRC notes that the 9.9% average excludes a new targeted rate for some Hastings district ratepayers for resilience work to Mangarau Stream, in Havelock North. HBRC must consult on setting a new targeted rate for that work, with the funds being passed to Hastings District Council who own and manage the asset and who will undertake the work. Options for consultation are the length of time for the rate to be collected.

HBRC is also proposing minor changes to the Regional Public Transport Plan, along with reconfirming its intent to implement a new bus network, but later than initially planned and at a reduced frequency than originally hoped for. This is due mainly to budget constraints. Feedback is also being sought on the planned new bus routes to ensure they work for users and communities.

The consultation document, publicly available here on Monday 31 March, identifies these main drivers pushing the budget more than forecast:

• New flood resilience work including implementation of recommendations from independent flood reviews and engagement on HBRC’s two major flood resilience schemes – Heretaunga Plains and Upper Tukituki;
• Increased costs to do planned work including elections (and a one-off binding poll on Māori constituencies), CDEM (Civil Defence Emergency Management) transformation, and our NIWE (North Island Weather Events) Flood Resilience Programme;
• Insurance and depreciation costs following the revaluation of Council’s infrastructure assets. 

To review the plan and make a submission go to: visithaveyoursayhb.co.nz
This link goes live on Monday, 31 March.