More councils in Hawke’s Bay have announced their proposed rates increases to take effect from July 1 - including Napier City Council, which plans to hike rates by almost 12 per cent.

Cyclone Gabrielle recovery work and high inflation are having a serious impact on councils as they set rates and budgets for the coming year.

Napier City Council will consider a rates increase of 11.7 per cent at its meeting on Thursday as part of its planning for the 2023/24 year.

Meanwhile, Tararua District Council met on Wednesday and revealed it was considering a rates increase of 13.2 per cent from July 1.

Last week, Hastings District Council also announced it was considering an 8.5 per cent rates increase for the year ahead.

Wairoa District Council, Central Hawke’s Bay District Council and Hawke’s Bay Regional Council are yet to announce their planned increases.

Tararua District Council is also considering a significant rates increase. Photo / Paul Taylor

Under the proposed changes, a homeowner in Napier with a current annual rates bill of around $2700 will pay an additional $316 per year on their bill or an extra $6 per week.

Councils generally have until the end of June to lock in their annual plans and any changes to rates, as the council year runs from July 1 to June 30 each year.

Council papers for Napier City Council stated its proposed rates increase of 11.7 per cent included a 2 per cent “disaster recovery rate”, designed to fund a $1.5 million Cyclone Gabrielle recovery budget in the 2023/24 annual plan.

“The immediate and ongoing impact the cyclone has had on our community and the region as a whole has resulted in new costs,” council papers read.

“The extent of most of these costs remains uncertain at the time of writing this report, but are likely to include items such as rates remissions, resilience planning, recovery costs.”

Council papers also stated that Napier City Council was initially considering a 16 per cent rates increase but had managed to reduce that figure.

Tararua District Council also cited increases to interest payments on council debt and disruption of supply chains as contributing factors in its higher-than-anticipated rates increases.

Napier City Council, just like neighbouring Hastings District Council, is considering forgoing community consultation this year on its annual plan, which it is permitted to do.

By the numbers

Proposed council rates increases for 2023/24 :

Hastings District Council: 8.5 per cent

Napier City Council: 11.7 per cent

Tararua District Council: 13.2 per cent

Central Hawke’s Bay District Council: To be announced

Wairoa District Council: To be announced

Hawke’s Bay Regional Council: To be announced

Previously projected rates increases for 2023/24*:

Hastings District Council: 5.7 per cent

Napier City Council: 7 per cent

Tararua District Council: 6.7 per cent

Central Hawke’s Bay District Council: 6.5 per cent

Wairoa District Council: 8 per cent

Hawke’s Bay Regional Council: 14.5 per cent

* These projections are from council long-term plans and do not factor in high inflation and the cyclone.