Back to top

2024-2034 Long Term Plan Incorporating amendment to Revenue and Financing Policy and Draft Development Contributions policy


Showing search results for ""

As with other councils across the country we are contending with the fact over the past three years bridges have become 38 per cent more expensive to build, roading and water supply systems are 27 per cent more expensive and sewerage systems are 30 per cent more expensive.

This means we need to spend a lot to maintain and renew key network assets such as our wastewater systems over the next few years.

We are also facing ongoing high inflation, insurance cost increases, increased interest costs on our borrowings, the rising cost of labour and materials such as pipes and bitumen.

On top of this our district is faced with a big bill to pay from Cyclone Gabrielle – around $170m to repair and rebuild the bridges, roads and culverts that were destroyed and are essential for the economic and social wellbeing of our community.

We also committed $50m to the Category 3 properties’ Voluntary Buy Out programme and it is estimated a further $10m is required to repair water infrastructure and parks.

To see the impact on your property enter your address into the online rates calculator here.

While the average rates increase is proposed to be 25 per cent in the 2024/25 year, this increase will not necessarily apply to your property. Different factors impact on the level of rates.

One property may have a higher valuation than another, or it may be connected to certain council services whilst another may not. A number of services are funded by fixed, per property charges that are also increasing so this changes the proportionate increase that some properties pay relative to others. A property may be in an urban area and closer to facilities than a rural property. A property may be used for a commercial purpose rather than as a home.

To see the impact on your property enter your address into the online rates calculator here.

We are looking at pausing some projects so we don’t have to borrow too much too quickly. This includes investment in our city centre and parks and on walking and cycling paths – areas where Council has invested significantly in recent years.

For instance, we have not set aside any funding for any further Splash Planet development, Civic Square redevelopment, Tōmoana Showgrounds development, new playgrounds, new events and the Hastings Library/Art Gallery upgrade.

We are also proposing to close Frimley Pool due to rapidly declining use of this facility, and the fact user funding is not covering its operating costs. This would save about $250,000 a year.

We have also set a savings target of $2.7m in year one of the plan, and have made a commitment to look for further savings in the second year.

Our aim is to get debt under control and to balance the budget – by dealing with debt earlier, rate increases can drop to around four per cent in urban areas and seven per cent in rural areas from about year four of the plan - 2027/28 onwards.

We have introduced a new Cyclone Recovery Targeted Rate to help fund the cost of the cyclone and we have proposed that the recovery programme be substantially delivered over the next six years. It could be delivered over nine years to smooth the rates increases but the transport network is currently still very fragile and any delays could end up costing more.

We have already received Central Government funding to assist with the costs of the Cyclone Gabrielle recovery and we will continue to seek financial assistance from Central Government.

We held public workshops in November last year and held an online forum for a further three months to gather community feedback on what we should and shouldn’t include in the Long Term Plan.

Among other suggestions we heard that people wanted us to concentrate on core business and prioritise infrastructure and Cyclone Gabrielle recovery investment, to stop spending on non-essentials.

Infrastructure is roads and footpaths, three waters (drinking, storm and wastewater), parks, reserves and sportsgrounds, rubbish and recycling.

The existing policy for rate remission on cyclone damaged properties will apply for one more year (2024-25).

After this period, Council’s ‘Rates Postponement – Natural Calamity’ policy will be available for further rates relief. Details on this policy, and Council’s other remission policies can be found on our website here.

We have not set aside any funding for Splash Planet development, Civic Square redevelopment, Tōmoana Showgrounds development, new playgrounds, new events, a Hastings Library/Art Gallery upgrade and walking and cycling initiatives.

We have also set a savings target of $2.7m in year one of the plan, and made a commitment to look for further savings in the second year.

While we await Government’s direction, our continued investment in water services has been planned for.

We are proposing to increase investment in drinking, storm and wastewater programmes to ensure we have quality water infrastructure both for now and for the future.

Three waters reform will not change how much or who pays for three waters.  Regardless of the structure the cost of maintaining and upgrading these networks continues to grow at a pace that is well above the annual inflation rate.

Given the financial challenges we have had to delay investment in infrastructure (roads, water, pipes etc) to service housing and industrial growth.

Our preference is to carefully carry on with the existing commitments. This means we need to be careful about timing or the compounding effect of interest costs will rapidly push up costs to be funded from future growth and from ratepayers.

 If any new areas for growth are proposed these will be carefully scrutinised (or funded by the private sector) to take the risk away from ratepayers.

Part of this proposal includes increasing Development Contributions from land developers.

Disclaimers and Copyright
While every endeavour has been taken by Hastings District Council to ensure that the information on this website is accurate and up to date, Hastings District Council shall not be liable for any loss suffered through the use, directly or indirectly, of information on this website. Information contained has been assembled in good faith. Some of the information available in this site is from the New Zealand Public domain and supplied by relevant government agencies. Hastings District Council cannot accept any liability for its accuracy or content. Portions of the information and material on this site, including data, pages, documents, online graphics and images are protected by copyright, unless specifically notified to the contrary. Externally sourced information or material is copyright to the respective provider.

© Hastings District Council