A focus on the urgent priorities has paid off, with Central Hawke’s Bay District Council set to adopt an average 7.9 per cent rate increase, down from the 14.9 per cent average increase forecast.

“We are very proud of this result to focus council activities and reduce the rates impact. But don’t be fooled by the 7.9 per cent figure.

“The big burden of rates increases continue to sit with our town households as we grapple with the cost of water infrastructure. Household rates in town will sit closer to a 12 per cent increase, compared to those rural areas without water services that will be around 5 per cent,” Central Hawke’s Bay District Council Mayor Alex Walker said.

The Council’s Three-Year Plan ‘Road to Recovery’ adopted in 2024, laid out the district’s priorities. It projected the 2025/26 rates increase would be 14.9 per cent to help pay for the mammoth amount of land transport, recovery and critical three waters investment facing the district, including projects such as building a new Waipawa Tikokino Road Water Treatment Plant and replacement of ageing water reservoirs.

The rate increase was reduced through a decrease in inflationary pressures, identifying new efficiencies in delivery, lower costs of borrowing and an organisational restructure to ensure Council staffing levels align with economic conditions and priority areas.

Targeted water rates increases are high – an average of 14.2 per cent. In comparison, general rates are forecast to increase by 4.3 per cent. The targeted rate increase continues to reiterate the need to have a region-wide conversation that moves the dial on the scale and efficiency of delivery water infrastructure.

“In Central Hawke’s Bay, our 4,400 urban households, are shouldering big rates for the drinking water, wastewater and storm water infrastructure required to support their environments, their households and businesses.

“Affordability is our biggest challenge. If we’re serious about the affordability and efficiency of our rates and council services, then 2025 is the year to pay attention to the conversation about Local Water Done Well.

“For many years now, we have asked Government for financial support to create a circuit-breaker on the issue. They refused, instead providing the Local Water Done Well regulatory framework for households and businesses to pay directly for all investment via rates and charges.

“We will be looking for guidance from you in May as we navigate these proposals.

“We’re getting on and delivering on the most urgent priorities – and there are plenty of them. Balancing how we pay for them will be the biggest ongoing challenge for us all,” Walker said.

Notes:

• The report that outlines the proposed Draft Annual Plan can be found here. 

• It is proposed that Council will adopt the Annual Plan 2025/26 at an Extraordinary Meeting of Council on 8 May.

• The rate increase was reduced through a decrease in inflationary pressures, identifying new efficiencies in delivery, lower costs of borrowing and an organisational ‘rightsizing’ activity to ensure Council staffing levels align with economic conditions and priority areas.

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