Council adopts Draft Long Term Plan 2024-2034

Hastings District Council’s Draft Long Term Plan 2024-2034 was adopted by councillors today and will now go out to the community for consultation.

The community has until May 27 to give feedback on the draft plan that proposes a rate increase of 25 per cent for the 2024/25 year, eight per cent of which would be used to help fund the significant work required to repair and rebuild from Cyclone Gabrielle, the remainder to deliver core services.

While $155m has been spent on the cyclone response and recovery to date, the estimated cost to finish reinstating the roading network alone is more than $795m (this includes bridges, pavements, slips and culverts).

It is anticipated that financial support through the Crown and Waka Kotahi – NZ Transport Agency would be received to assist with this cost, but Council’s share would still be $170m to complete the roading programme over the next six years.

In addition, council has 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.

Hastings mayor Sandra Hazlehurst said that while a funding support package had been received from the Government to assist with the cyclone recovery, council was still faced with a large bill of $230 million over six years that would need to be borrowed, in addition to further borrowing for the ongoing business as usual capital works programme.

Council was also facing the financial impact of ongoing high inflation, insurance cost increases, and the rising cost of labour and materials such as pipes and bitumen, she said.

“We have looked very closely at where we can make savings, possibly 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.

“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 a 25 per cent rating increase was proposed in the first year of the plan, this would reduce to 15 per cent in the second year (six per cent targeted for cyclone recovery) and 10 per cent in the third year.

It’s proposed that from years four to 10, the rating increase reduces to four per cent in the greater urban area, and to seven per cent in the rural area.

“Essentially we are trying to smooth out the rating increases over time, but not take too long to get on with the recovery and the non-cyclone work needed to maintain our roads, operate and improve our three waters services and continue to look after our facilities, including parks, streets, community centres and libraries.”

Consultation on the Long Term Plan, including the Revenue and Financing and Development Contributions policies, will open at midday tomorrow and remain open until May 27.

People can read the consultation document and give their feedback online at myvoicemychoice.co.nz or at Hastings’ libraries (Flaxmere, Hastings, Havelock North) and the Hastings District Council customer service centre on Lyndon Rd East.

18 April 2024

Back to Archive