At its 19 February workshop this past week, HBRC made further ‘non-decisions’ that help lock in the 2025/26 Annual Plan (AP) issues that will go to consultation next year.

The issues of contention involve previous decisions in the AP development process to cut HBRC funding ($500k) for the HB Regional Economic Development Agency (REDA) entirely, and to reduce spending on biodiversity projects by $1.1 million.

These cuts were deemed necessary to maintain a funding focus on cyclone recovery, particularly flood resilience. If the cuts were kept in place, the HBRC rate increase for 2025/26 would be 11.9% and 9.5% in 2026/27.

Councillors have now elected to restore some of the reduced funding, with the bulk of the added cost to be paid for with revenue from carbon credit sales.

REDA will receive ‘up to’ $500,000 for 2025/26 and the following year, depending upon finalizing its work programme and year-end budget status at the end of the 2024/25 fiscal year and considering any ‘structural’ changes in HB’s (multi-council-funded) overall economic development sector now under review.

Various biodiversity projects would receive an additional $500,000 for each of the next two years.

These and other recommendations in the draft AP must be formally adopted at HBRC’s 26 March Council meeting. Staff are calculating the rates impact of the restored funding, but it appears to add 0.5-0.8% points to the projected increases.

In good financial news for HBRC, Council was informed this week by its investment arm, HB Regional Investment Company (HBRIC) that it could expect a full cash dividend payment of $15,050,000 … 81% of this amount has been paid to date, with the balance to be provided by further dividend payment by Napier Port.