Hastings Rates: 16-Year Cyclone Gabrielle Recovery Levy & 5.9% Increase

Hastings Residents Face Sixteen Years of Cyclone Gabrielle Recovery Rates

Hastings ratepayers will be contributing to a dedicated recovery rate on their bills for the next 16 years to address the financial fallout from Cyclone Gabrielle, which devastated the region on February 14, 2023.

In addition to the recovery rate, Hastings District Council is proposing a new targeted post-cyclone rate of $58 per property this year, aimed at bolstering local emergency management capabilities. Despite the ongoing financial strain, the council is proposing an overall rate increase of 5.9% for the year, a reduction from the 10% increase initially projected in its Long-Term Plan.

The cyclone caused widespread destruction, sweeping away bridges, damaging infrastructure and flooding homes, leaving the council with estimated recovery costs reaching approximately $1 billion. The Government has provided significant support, contributing 50% of the post-cyclone property buy-out scheme, funding the removal of millions of cubic meters of silt, and allocating an additional $197 million to specific transport projects.

Two years after the disaster, the Hastings District Council is currently facing a $230 million recovery bill. However, through careful financial management and focused efforts, the council has managed to reduce its share of the cyclone cost to $182 million, resulting in a $3.4 million, or 2.1%, reduction in the cyclone-targeted rate.

Mayor Wendy Schollum emphasized the council’s commitment to fiscal responsibility. “We know households are under pressure and a rate increase of any size has an impact. Bringing the forecast 10% down to 5.9% reflects careful financial management and focused work,” she said. Schollum highlighted the decision to complete major cyclone-damaged bridge and culvert rebuilds within the next three years as a key factor in securing full funding and lowering the council’s financial burden.

The council has also identified $3 million in savings through operational improvements, including postponing staff replacements, reducing reliance on external consultants, and adjusting the roading program.

However, not all residents are pleased with the ongoing financial implications. Regan Munro, a car salesman and property owner in the district, expressed frustration with rising rates and announced his intention to sell a rental property in September. “I can’t keep telling my tenant their rent is going up because the rates have gone up. It’s just not fair to them,” Munro said. He questioned the long-term nature of the recovery fee, suggesting that an increasing population should accelerate debt repayment.

The council responded by stating that its budget is not directly tied to property numbers, explaining that the budget is determined by the cost of work to be done and then distributed among the properties in the district. Schollum added that the timeframe of the targeted rate could be reviewed as part of the Annual Plan process, noting that much of the recovery work, such as bridge rebuilds, is expected to provide benefits for generations to come.

The council has adopted a “we are all in it together” principle, splitting the cyclone recovery fee with a fixed uniform charge on every property and a percentage based on land value, ensuring that rural areas and lower-value homes contribute proportionally.

The draft Annual Plan has also improved the council’s budget position, reducing the forecast deficit from $8.4 million to $4.8 million, with a balanced budget anticipated by 2027/28.

Similar rate increases are being considered in other parts of Hawke’s Bay. Central Hawke’s Bay District Council is proposing a 7.7% increase, citing cyclone recovery and water infrastructure upgrades as key drivers. Wairoa’s forecasted increase remains at 9.97%, as set in the 2024-27 Long-Term Plan, while Napier ratepayers are facing a proposed 9.1% increase. Hawke’s Bay Regional Council is considering an average increase of less than 5% for 2026–27, down from an earlier projection of 8.5%.