Homeowners in Napier could see an increase of almost 12 per cent on the rates bill from July 1.
Homeowners in Napier could see an increase of almost 12 per cent on the rates bill from July 1.
More councils in Hawke’s Bay have announced their proposed rates increases to take effect from July 1 - including Napier City Council, which plans to hike rates by almost 12 per cent.
Cyclone Gabrielle recovery work and high inflation are having a serious impact on councils as they set rates and budgets for the coming year.
Napier City Council voted at its meeting on Thursday to include a rates increase of 11.7 per cent in the 2023/24 annual plan, which is currently being developed.
Napier Mayor Kirsten Wise said, “we’re aiming to strike the right balance between adequately funding Napier’s needs and applying a rates increase that is manageable”.
Meanwhile, Tararua District Council met on Wednesday and revealed it was considering a rates increase of 13.2 per cent from July 1.
Wairoa District Council, Central Hawke’s Bay District Council and Hawke’s Bay Regional Council are yet to announce their planned increases.
Tararua District Council is also considering a significant rates increase. Photo / Paul Taylor
Under the proposed changes, a homeowner in Napier with a current annual rates bill of around $2700 will pay an additional $316 per year on their bill or an extra $6 per week.
Councils generally have until the end of June to lock in their annual plans and any changes to rates, as the council year runs from July 1 to June 30 each year.
Napier City Council’s proposed rates increase of 11.7 per cent include a 2 per cent “disaster recovery rate”, designed to fund a $1.5 million Cyclone Gabrielle recovery budget in the 2023/24 annual plan.
“The disaster recovery rate of an additional 2 per cent was a step we had to take,” Mayor Wise said. “It will ensure our community is well looked after in terms of providing recovery support and services.”
Council papers also stated that Napier City Council was initially considering a 16 per cent rates increase but had managed to reduce that figure.
Tararua District Council also cited increases to interest payments on council debt and disruption of supply chains as contributing factors in its higher-than-anticipated rates increases.
Napier City Council, just like neighbouring Hastings District Council, will forgo community consultation this year on its annual plan, which it is permitted to do.
