Waiaroha - a water storage facility and education centre - is one of a number of projects that have transformed Hastings in the past few years. Photo / HDC
Waiaroha - a water storage facility and education centre - is one of a number of projects that have transformed Hastings in the past few years. Photo / HDC
Opinion by Damon Harvey
OPINION
This year is shaping up to be the year of big rate rises across all of Hawke’s Bay’s councils.
While a final figure had yet to be secured, Central Hawke’s Bay mayor Alex Walker said her ratepayers could be paying 20-30 per cent more, while Napier mayor Kirsten Wise has said “double digit rate rises” and Hastings mayor Sandra Hazlehurst has also raised rate rise expectations, due to ballooning council debt in excess of $400 million.
Consultation is vital and as a Hastings/Havelock North ward councillor I’m urging all ratepayers to have a big voice on rate rises and our Long Term Plan as Hastings ratepayers could face rate increases of $500 more than they are currently paying.
Hastings has undergone an amazing transformation over the past few years, with big spend-ups on our water infrastructure, the rebuild and refurbishment of Toitoi, numerous buildings purchased in the CBD as part of its revitalisation and new playgrounds at Cornwall Park, Flaxmere Park and St Leonards Park.
This has seen council debt rise from $152m in 2020 to $400m in early 2024 and interest payments on this debt is around $18m.
Last year’s cyclone is adding further debt with an estimated $800m to repair roads and bridges and a $50m contribution to buy out property owners in category 3.
The Government is helping foot the bill but ratepayers will also be contributing.
So what does this increase in council debt mean for you?
The last annual plan had an average rate rise was 8.7 per cent average but if rates rise to between 20-30 per cent, you can roughly work out what this could mean for you.
I went to the council website to compare rate rises since 2019/2020 on residential and rural properties such as our family property (lifestyle block), residential properties in Havelock North, Frimley and Flaxmere.
From 2019/2020 to 2023/24 our rates went up from $1892 to $3011 (up $1119), while the property in Reeve Drive, Havelock North jumped $3183 to $4256 (up $1073), in Frimley from $2391 to $3451 (up $1060) and in Flaxmere $1808 to $2613 (up $805).
So if rates go up by on average of 20 per cent or 30 per cent this means a general rate jump of $450-$675 in Havelock North, $295-$442 increase in Frimley and in Flaxmere between $130-$200.
Over the holidays I was approached by a ratepayer concerned about ongoing rate rises and that council needs to cut its cloth differently, stick to its core services with no more spending on “nice to have projects” as homeowners and tenants can’t continue to afford huge rate rises on top of the already cost of living crisis.
Hastings District councillor Damon Harvey feels some projects may need to be deferred to take the edge off rates rises. Photo / NZME
It’s a tough balance as we all like to live in a thriving city and district, enjoying the likes of Toitoi and having safe drinking water.
As we look to minimise the impact on ratepayers, I doubt we can rely on any significant central government “sugar hit” funding support going forward as they grapple with debt.
In my opinion, council needs to leave no stone unturned to make operational cost savings, while also look at deferring some projects and look to smooth out rate rises, rather than a big hit this year and then slight reductions in following years.
Council will also have to look at levels of service and perhaps lower expectations on things like maintenance of parks and reserves.
Last year an independent review on the future of local government was completed and having recently reviewed this, there’s little in the way of new revenue-generating ideas.
The review’s only answers are:
- to ask Government for greater revenue sharing between central and local government (which currently sits at 2 per cent of GDP) to form part of new city and regional deals
- for Government to stump up and pay rates on all Crown land
- to introduce congestion charging, bed taxes (Airbnb) and tourist levies
There’s a lot at stake and it is vital that you have your say on how your money will be spent. Contact one of your elected councillors and also participate in the formal consultation.
