24% rates hikes proposed for Napier

12:43 pm on 22 March 2024
Destroyed items piled outside Peter Mitchell's house in Awatoto, Napier.

Destroyed items piled outside a house in Napier. Photo: RNZ / Niva Chittock

Napier homeowners are facing a rates hike of 23.7 percent this year.

The proposed rates increase is part of Napier City Council's three-year plan, and includes a portion dedicated to improving resilience in the aftermath of Cyclone Gabrielle.

The plan was about "getting the basics right", mayor Kirsten Wise said, adding that there were no new projects planned apart from those that would improve resilience.

"Recovery still requires significant resourcing, but at the same time, we need to stay focused on the core services our community wants and needs from us," she said.

That included investing in infrastructure and dealing with escalating materials and labour costs.

"We can't shy away from these challenges, including increasing costs," Wise said.

"If we don't face them now, we will be creating an untenable situation for future generations."

The draft plan will open for consultation on Monday, 25 March.

Council wants to hear people's views on six key areas: council-owned housing, improving resilience, how council investments are managed, increases to fees and charges, the funding of some tourism facilities and the future of council office accommodation.

In the aftermath of Cyclone Gabrielle, central government gave the council dispensation to prepare a three-year plan focused on cyclone recovery, rather than the usual 10-year long-term plan.

Meanwhile, Napier City Council also plans to sell off its social housing in favour of retirement flats.

Keeping the housing as is would mean a 2.6 percent rates increase every year, it said in February.

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