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Regional Council Alters Three-Year Plan Following Community Submissions

Executive summary:

  • Reduced the overall rate burden across three years of the plan
  • Provide a special circumstances remission to provide relief to the most affected by change in public transport boundaries.
  • Provide a hardship remission to those suffering hardship –(including hardship resulting from Revenue and Finance Policy change).
  • The hardship remission for those suffering hardship as a result of the cyclone remains in place
  • Efficiency review of Council's business to take place ahead of the next Annual Plan

The Hawke's Bay Regional Council has cut its average proposed rate increase from 19.6 percent to 16 percent for 2024-25, in response to community concerns about rates affordability.

The Regional Council consulted widely on its draft Three-Year Plan (2024-2027). It held 12 drop-in sessions, received 822 submissions, pages of social media feedback and heard 60 individuals or groups over two days of public hearings. Over two days, the Regional Council deliberated on this feedback, as well as staff analysis and options to address issues raised by the community during consultation. Regional Council Chair Hinewai Ormsby says councillors heard the community and looked hard at options to reduce the impact of the proposed rates rises. Changes agreed to this week mean the Regional Council will cut its proposed average rates increase from 19.6 percent to 16 percent in Year 1. In Year 2, rates will rise from 18.1 percent to 18.3 percent, and in Year 3, rates will drop from 9 percent to 8.5 percent. Over the three years, the Regional Council's rate-take will be $5 million less. “We have dropped the rates increases through further internal savings, including keeping 20 permanent roles vacant for three years, subject to the outcome of efficiency reviews. “We will seek a special dividend from the Hawke’s Bay Regional Investment Company (HBRIC) of $2.85 million to maintain funding for Hawke’s Bay Tourism in Year 1, support retaining biodiversity and biosecurity efforts, and offset rates remissions. The remissions would otherwise have fallen onto the General Rate and increased rates for everybody.” “We understood that the proposed rates increase created a significant affordability issue for some ratepayers. So we have pulled all the levers available to us to make the changes we heard communities wanted, as best we could. We will refine our remissions policies to help the most severely affected ratepayers.” “We are looking to provide remissions to those most-affected by changes to Public Transport rates and those suffering hardship.” We have also directed the Chief Executive to undertake an efficiency review of Council’s business, ahead of the next Annual Plan, ready for Year 2 (2025-26).” Investing in flood resilience A key consultation topic was how to rate for the new flood mitigation schemes in Wairoa (operating and maintenance only), Heretaunga Plains extension (Omāhu, Pākōwhai, Waiohiki), Whirinaki industrial and Pōrangahau. Councillors agreed to fund the capital costs of post-cyclone schemes in Whirinaki and Pōrangahau from the general rate given the unexpected costs to small communities. Wairoa flood mitigation costs are 100 percent Crown-funded and the mitigations in Waiohiki, Pākōwhai and Ohiti-Omahu are part of the much larger Heretaunga Flood Scheme. Tough choices The Regional Council heard from submitters about the proposal to stop some council services and temporarily slow a number of activities to fund recovery over the next three years. Many submitters spoke about the proposal to phase out funding for Hawke’s Bay Tourism. Given the significance of tourism to the regional economy and to give Hawke’s Bay Tourism time to secure other funding, the Regional Council agreed to maintain funding at $1.5 million in Year 1, with no funding commitment from Year 2.The Regional Council will keep the door ajar to produce a sustainable plan for the business in Year 2, alongside the committed support from industry and other councils.

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The Regional Council will get a special one-off regional economic development dividend from HBRIC that means the cost does not fall on ratepayers in this year’s rates. Councillors heard from submitters about the proposal to stop grant funding of Te Mata Park. The Council agreed to maintain its $120,000 annual contribution for the upkeep of the much loved and used park.

It will make a 20 percent cut to the maintenance of its regional parks (Pākōwhai, Pekapeka, Tūtira and Waitangi) over the next three years, with the expectation that it will be reviewed after three years. Councillors called for special reviews of the Revenue and Finance Policy around the targeted rates schemes for Upper Tukituki and Public Transport. Councillors also agreed to the council staff recommendations including stopping the Sustainable Homes programme, and will promote alternative programmes that already provide this support for the community (please see notes to editor). The Council will reduce funding available through the Erosion Control Scheme, and this is seen as timely given farmers are still in recovery and focused on rebuilding farm infrastructure. On the table, was a proposal to continue a slow-down of biosecurity and biodiversity, and Councillors agreed to invest $400,00 over the three years – and in response to community views that this environmental work is critical. Boost in funding to Civil Defence Councillors agreed to bolster funding of $1.3 million for Civil Defence over three years, as together with all councils in the region, the Regional Councils works on implementation of the review of the Civil Defence Emergency Management response to Cyclone Gabrielle. Regional Council Chair Hinewai Ormsby says she is thankful to those who had their say, sent in a submission or came to the hearings. “We thoroughly considered all feedback, and we are grateful to the people who devoted time to sharing their views who helped make our decisions more robust. We have pulled the levers available to us while balancing the known and unknown climate resilience challenges we have ahead of us.”

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