Unlike HBRC, which dove into the details, the Hastings District Council’s rates deliberations were carried out at a ‘macro’ level.
The choice was ‘simple’ – an 25% average rate increase or 19%.
I can’t really call what I saw online a debate. Rather a series of speeches by councillors commiserating with the current hardships facing Hastings residents and businesses. And voting unanimously for the 19% option.
Unfortunately, unlike the case with other HB councils, no information was available to enable media or the public to follow officers’ recommendations or inform the discussions that were undertaken on the day.
To accomplish the lower rate level HDC will borrow funds to pay for current operating expenses, generally considered a fiscal no-no. It’s an approach HBRC adopted to cope with ratepayers’ Covid stress, but now regrets. Ultimately, HDC rates will be higher longer to repay the debt.
Mayor Sandra Hazlehurst held out the hope that more Government funding will still be forthcoming, commenting that every $10 million could permit a 1% rate reduction. Good luck with that!
Frimley Pool drew a reprieve, with closure having been floated as the Council’s option during consultation, with an annual savings of not quite $250,000. The Pool will remain open for the 2024/25 season, if operationally feasible, with the chief executive charged gathering more information regarding the operational feasibility of the pool and reporting back to council through the 2025/26 Annual Plan process.
There is a glaring omission by [virtually all] local Councils, when they present their glossy arguments regarding planned work and the impact on rates. It’s an elephant in the room that Councillors seem unable to see. The omission, and it is evident in all cases, is that the Councils present NO analysis of their own operations. Are they economical and efficient? Are they overloaded with bureaucracy and red tape? Do they make timely decisions? Is the governance really effective? What about staffing levels? In brief, the issue is that the local authorities are NOT commercial businesses even though they might like to think they are. They do not have to solicit for customers or compete for marketshare. They do not have to price their services competitively. They do not have to pursue revenue actively. They rarely have to justify the level of their investment in local projects or to demonstrate that the project is value for money and is executed efficiently. Councils create, and “consult” on their future plans. But they can extract revenue for these projects, on DEMAND, from their “customers”. The customers have no choice other than to pay what is demanded. The customers cannot go elsewhere or refuse to “buy” the service offered.