Rates increases on the cards for Hastings

Hastings District Council signed off on a working draft Long Term Plan on Thursday which will go out for consultation. Photo / File

Hastings District Council is proposing rates rises of more than 40 per cent over the next six years for rural areas and about 18 per cent in three years for urban areas.

On Thursday Hastings District Council signed off on a working draft Long Term Plan for 2021-2031 that forecasts a rates rise of 6.8 per cent for 2021-22, 6.5 per cent for 2022-23 and 5.3 per cent for 2023-24.

For years four to 10 of the plan the rates increases average 3.75 per cent.

Rates increases in rural areas are forecast to rise at an average of 7 per cent per year in the first six years of the plan, a Hastings District Council spokesperson confirmed.

The council says this is driven by infrastructure necessities such as renewing, resealing and maintaining rural roads, and strengthening bridges.

There will also be specific consultation with groups of property owners impacted by other targeted proposals with rates figures outside of the Long Term Plan.

This will include targeted consultation in Havelock North around proposed changes to parking rates, and in both Havelock North and Hastings regarding proposed city centre streetscape enhancements.

A council spokesperson said the Local Government Act 2002 requires the budgets forecast in the Long Term Plan to include an inflation index known as the Local Government Cost Index.

"That index for roading expenditure is forecast at about 3 per cent per annum, with other expenditure at about 2.5 per cent per annum. Therefore this number is built into these forecasts.

"In other words about 3 per cent per annum for inflation and 4 per cent per annum for new work including the additional road renewal work makes up the 7 per cent per annum."

Hastings mayor Sandra Hazlehurst said maintaining and investing in the council's $2 billion worth of infrastructure assets is important as well as planning for a growing population and managing water including planning for the security of water supply.

At the council meeting Hazlehurst said the LTP was "very much future proofing our infrastructure, caring for our assets and improvements to the wellbeing of our people and our environment".

She said she believed the rates figures are "a very fair and balanced start".

Councillor Simon Nixon said the rates increase of 6.8 per cent for urban areas in 2021 is "not insignificant, particularly against other costs that are occurring [such as] regional council rates and so on".

He questioned how the council would deal with a situation where there is "an overall pushback against a rates increase" and was told it would be no different to how the council normally deals with public feedback in that they "listen and assess based on the weight of what the community is telling you".

The draft LTP will now be audited before being sent for community consultation after a council meeting on March 18.

Consultation will focus on key issues including installing and maintaining roading and water infrastructure; the challenge of growth and housing supply; completing remaining city centre revitalisation projects; attracting employment and economic investment opportunities; providing services to help improve opportunities for young people; and enhancing and protecting natural spaces.

Residents will receive the consultation document to their homes when the consultation opens, with information and submission forms also available online and out Hastings libraries. The consultation period will run for five weeks.