Hastings residents will face a cyclone recovery rate on their property bills for the next 16 years, following the devastation caused by Cyclone Gabrielle in February 2023. This year, property owners will also pay a new targeted post-cyclone rate of $58 per property to bolster local emergency management capabilities.
Long-Term Financial Impact
The Hastings District Council is proposing an overall rate increase of 5.9% for the year, a reduction from the 10% increase initially outlined in its Long-Term plan. The cyclone caused an estimated $1 billion in damage to the region, prompting significant government contributions – including 50% of property buy-out costs, silt removal funding, and $197 million for transport projects.
Despite the government support, the district council currently faces a $230 million recovery bill. Mayor Wendy Schollum stated the council has focused on reducing both rates and borrowing. Securing 100% funding for most bridge and culvert rebuilds within the next three years has reduced the council’s share of the cyclone cost to $182 million, resulting in a 2.1% reduction in overall rates.
Ratepayer Concerns
Regan Munro, a local car salesman and property owner, expressed frustration with rising rates and plans to sell a rental property in September. Rates in Hastings have increased by 8.7% in 2023, 19% in 2024, and 15% in 2025. Munro worried the 16-year recovery fee would hinder progress and questioned whether increased housing development could accelerate debt repayment.
The council maintains its budget is based on the cost of work, distributed among properties in the district, and will review recovery costs during the Annual Plan process. The recovery fee is split, with 50% as a fixed charge and 50% based on land value, aiming to distribute costs equitably.
Regional Rate Increases
Other districts in Hawke’s Bay are also facing rate increases. Central Hawke’s Bay projects a 7.7% increase for 2026-27, also driven by cyclone recovery and water infrastructure upgrades. Wairoa’s forecasted increase, set in 2024, is 9.97%, whereas Napier’s proposed increase is 9.1%. Hawke’s Bay Regional Council is considering an increase of less than 5% for 2026–27.
Frequently Asked Questions
How long will Hastings ratepayers pay the cyclone recovery rate?
Hastings ratepayers will pay the cyclone recovery rate for the next 16 years.
What is the new targeted post-cyclone rate for Hastings properties?
The new targeted post-cyclone rate is $58 per property, intended to strengthen local emergency management capability.
What percentage of cyclone recovery costs did the government contribute?
The Government contributed 50% of the post-cyclone property buy-out scheme and provided $197 million towards specific transport projects and programmes.
As Hastings and the wider Hawke’s Bay region continue to rebuild, how might long-term financial strategies balance the needs of current ratepayers with the investments required for future resilience?
