16 Apr 2024

Hastings homeowners may face 25% rates increase

10:00 am on 16 April 2024
Hastings Mayor Sandra Hazlehurst

Hastings mayor Sandra Hazlehurst. Photo: RNZ / Tom Kitchin

Hastings homeowners may be hit with a 25 percent rates rise as the city grapples with how to pay for the huge amount of cyclone recovery work still ahead.

Hastings District Council will on Thursday consider the rates hike as part of its draft long-term plan.

The draft plan is proposing 8 percent of the increase is targeted to cyclone recovery and 17 percent to core services, such as maintaining existing roading and invest in infrastructure.

"It is very much an infrastructure-based budget," mayor Sandra Hazlehurst told Morning Report.

"What we've spent in the last year is close to $155 million just in the response and road repairs.

"In addition to that we had the category three voluntary buyout, which is $50 million, and on top of that, we need around $170 million to continue with our transport rebuild."

Hazlehurst said the council was hoping for more funding from the government to help the recovery.

"At the moment we are borrowing this money over 16 years, so it is a burden on our future ratepayers, but we don't have a lot of choice at the moment, we have to get our infrastructure rebuilt."

Hazlehurst said it was difficult for the council to forecast rate rises.

"The 15 percent (rise) in the following year and 10 percent in the following year will depend on what happens with our three-water infrastructure and how we manage that.

"It is very unknown, so we just have to work through what we know today and keep talking and meeting with the Crown to identify some support."

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