The Hastings District Council has reduced the 10% rate increase projected in the 2024/34 Long Term Plan for the upcoming fiscal year to 5.9%, a 40% decrease.

At the same time, HDC has reduced the forecast budget deficit for that year from $8.4 million to $4.8 million, and expects to balance its budget in 2027/28.

According to Agenda papers to be considered at HDC’s 18 February Council meeting, the savings come chiefly in two ways:

Cyclone Gabrielle Targeted Rate – “The Cyclone Recovery work programme is being advanced by two years to enable the Council to take advantage of enhanced government subsidy rates. Those higher subsidy rates along with procurement and delivery efficiencies mean that the Council’s overall share of the cyclone cost reduces from $230m to $182m. This in turn means that the targeted rate which has been set to fund the recovery over a 16-year term is able to be reduced by $3.4m, resulting in a 2.1% reduction in rates.”

Operational Savings – “The Council has also pressed on looking for savings within its operations and has identified $3m in addition to the $2.7m of enduring savings previously found. These further savings relate primarily to personnel, consultancy and expert advice along with some refinement to the wider (non-cyclone) roading programme.”

There are some increases reported: “New budget items contained in the plan relate to fitout requirements for replacement office space in the new building development at the former Heretaunga House site, enhanced works on Havelock North streams and cost escalations in the collection of kerbside recycling.”

New spending is also planned for emergency management. The Agenda explains: “This Annual Plan also finds funding space to enable an enhanced response to a changing context regarding Council’s emergency management responsibilities. Those responsibilities coming from post cyclone reviews and coronial enquiries along with a transitional agreement transferring more emergency response responsibility to local authorities.” The proposed rate is $58.00 per property to fund $1.6 million in enhanced resilience and response capabilities.

Still twisting in the wind is the funding level for visitor attraction. The Agenda says: “Funding to support visitor attraction to the Hastings District has been retained at the same level as FY25/26, pending decisions that Napier City Council (NCC) may make through its Annual Plan process. If NCC decides to reduce its contribution to Hawke’s Bay Tourism Limited(HBT), then further decisions by Council will be needed on the level of funding to support this activity.”

All seems reasonable, but some will be concerned that a 5.9% rate increase is still above the inflation rate, with possibly more to come for tourism funding. Are you satisfied? The new budget is going out to public consultation in April … you’ll have a chance to respond.