Hastings Residents Face 16 Years of Cyclone Recovery Rates

Hastings District Council ratepayers will be contributing to cyclone recovery costs for the next 16 years, following the devastation caused by Cyclone Gabrielle in February 2023. This year, residents will also face a latest targeted post-cyclone rate of $58 per property, designed to bolster local emergency management capabilities.

Rate Increase and Recovery Costs

The council is proposing an overall rate increase of 5.9% for the year, a reduction from the initially projected 10% increase outlined in its Long-Term Plan. Cyclone Gabrielle inflicted an estimated $1 billion in damage to the region, sweeping away bridges, damaging infrastructure, and flooding homes.

The Government has contributed significantly to the recovery effort, providing 50% funding for the property buy-out scheme, covering the removal of millions of cubic meters of silt, and allocating an additional $197 million to specific transport projects and programs. Despite this support, the Hastings District Council currently faces a $230 million recovery bill.

Council Efforts to Mitigate Costs

Mayor Wendy Schollum emphasized the council’s commitment to minimizing both rate increases and borrowing. “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 stated.

A key factor in reducing the rate increase was the commitment to complete major cyclone-damaged bridge and culvert rebuilds within three years, securing full funding for most of these projects. This reduced the council’s share of the cyclone cost to $182 million, resulting in a $3.4 million, or 2.1%, reduction in overall rates. The council also identified $3 million in savings through improved operational efficiency, reduced staffing, and decreased reliance on external consultants.

Ratepayer Concerns

Regan Munro, a local car salesman and property owner, expressed frustration with the ongoing rate increases. Rates in Hastings have risen by 8.7% in 2023, 19% in 2024, and 15% in 2025. “I can’t preserve telling my tenant their rent is going up due to the fact that the rates have gone up. It’s just not fair to them,” Munro said, questioning the long-term impact of the 16-year recovery fee and suggesting that increased housing development should accelerate debt repayment.

The council responded that the budget is based on the cost of work required, divided among the number of properties in the district, and that the targeted rate timeframe could be reviewed during the Annual Plan process. Schollum noted the longevity of the infrastructure projects, stating that “much of this work, such as the bridges, is expected to last 100 years, so many generations will get the benefit of this.”

Regional Rate Increases

Other districts within Hawke’s Bay are also experiencing rate increases due to cyclone recovery efforts. Central Hawke’s Bay is projecting a 7.7% average rate increase for 2026-27, while Wairoa’s forecasted increase remains at 9.97%, set in the 2024-27 Long-Term Plan. Napier ratepayers are facing a proposed 9.1% increase. Hawke’s Bay Regional Council is considering an average rates increase of less than 5% for 2026–27, down from an earlier projection of 8.5%.

The Hastings District Council aims to achieve a balanced budget by 2027/28, having improved its budget position from an $8.4 million deficit to $4.8 million in the draft Annual Plan.