Annual Plan 2025-2026

Like other councils across New Zealand we are contending with very high inflation for the materials that councils use to build and maintain things like bridges (up 38 per cent), roading materials and water supply systems (up 27 per cent), and sewerage systems (up 30 per cent). We are also facing insurance cost increases, increased interest costs on borrowings, and rising cost of labour costs.

The bill from Cyclone Gabrielle is around $170m to repair and rebuild the bridges, roads and culverts that were destroyed; all 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.

While the average rates increase is in the coming financial year (2025/26) 15 per cent, 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, and therefore pays a different fixed rate towards their management and maintenance.

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 budgeted for Splash Planet development, Civic Square redevelopment (aside from paving renewal and paving under the pou), Tōmoana Showgrounds development, new playgrounds, new events, the Hastings Library/Art Gallery upgrade, or walking and cycling initiatives.

We have also closed Frimley Pool due to rapidly declining use of this facility, and the fact user funding was not covering its operating costs.

We 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, so 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 introduced a new Cyclone Recovery Targeted Rate in Year One of the plan, 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 Government funding to assist with the costs of the Cyclone Gabrielle recovery and will continue to seek financial assistance from Government.

We held public workshops prior to finalising the Long-Term Plan, and held an online forum for three months to gather community feedback on what we should and shouldn’t include in the that plan.

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

Core infrastructure includes roads and footpaths, three waters (drinking, storm and wastewater), parks, reserves and sportsgrounds, rubbish and recycling.

We have not budgeted for Splash Planet development, Civic Square redevelopment (aside from paving renewal and paving under the pou), Tōmoana Showgrounds development, new playgrounds, new events, the Hastings Library/Art Gallery upgrade, or walking and cycling initiatives.

We have also closed Frimley Pool due to rapidly declining use of this facility, and the fact user funding was not covering its operating costs.

As we transition to the Government’s Local Water Done Well reforms (which will take some time), continued investment in water services is included in the Long-Term Plan, to ensure we continue to have quality water infrastructure both for now and for the future.

A separate consultation on Local Water Done Well is due to be held in May 2025.

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 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.