A different look for Hurunui’s rates bill

Today the draft budget was adopted by Council, which established that the rates bill for Hurunui ratepayers will look a little bit different come July.

Councillors voted in favour of a growth adjusted rates increase for the 2026/27 year of 5.31%, which includes rates for three waters.

Excluding the rates set for three waters will result in a growth adjusted rate increase of 3.97%.

Hurunui District Council’s Chief Financial Officer Jason Beck explained that Council will collect a total of $14.7 million in rates for Drinking Water, Waste Water and Stormwater, on behalf of the new Water Services Council Controlled Organisation, Kaikoura Hurunui Water Services Ltd (KHWS).

Council will set a rate to collect water rates $11,107,423, sewer rates $2,473,247, and stormwater rates $1,192,043, all allowed for in Year 3 of the Long Term Plan.

“These rates will simply be paid over to KHWS,” said Beck.

KHWS was incorporated on 23 March 2026 and will come into force on 1 July 2026, three independent directors have been appointed.

In turn, Council’s debt has been reduced by $78,390,643 due to the transfer for the forecast balance of internal debt held for Three Waters to KHWS.

The Geopolitical situation has forced significant increases to the cost of oil, directly affecting fuel costs and with it an anticipated increase to the cost of Roading.

The original budget for the 2026/27 year (maintenance, network management and renewals) was $12.4 million.

With an estimated 15% of the maintenance and renewals directly affected by movements in fuel costs (generally diesel) there has been an increase allowed of 15%. In addition, a 5% increase has been allowed for network management resulting in the Subsidised Roading Programme increasing to $14.1 million, (an increase of $1.75 million).

“As we are not expecting any additional subsidies from Waka Kotahi, that $1.75 million can only be funded by an increase to the Roading Rates,” said Beck, explaining that the additional $1.75 million represents over a 5% increase in rates alone.

Beck expressed the fortunate situation Council is in, having built a reserve fund in roading totalling $1,206,338, which will be utilised to offset the potential increase to rates.

“Fuel increases are applied to various cost centres throughout the organisation.”

Mayor Marie Black said Council will continue to review, track and monitor the geopolitical situation and particularly the impact on fuel prices.

“It remains the focus of our attention. As fuel prices affect everybody in our district we recognise that the price shift has a direct impact for all businesses and households,” said Mayor Black.

A challenging tourism market has resulted in Hanmer Springs Thermal Pools & Spa (HSTP&S) cash surplus for the 2025/2026 year being reduced by $206,494 to $3,456,644.

Beck said despite the slower tourism market, HSTP&S is keeping up with tourism progress which will in turn bring more tourism money into the Hanmer Springs community and the District at large.

“A re-prioritisation of its capital programme has meant more has been spent on new products, particularly the Your Wave Project.”

Not every property in Hurunui District will receive a rates increase, despite the 5.31% figure, including Three Waters.

Beck said the determination of the actual increase (or decrease) to rates for an individual property will depend on the location of the property, whether it is connected to a sewerage system or water supply and how much water it receives.

“Another factor for the forthcoming year is the effect of the District Revaluation undertaken in the latter half of the 2025 calendar year.

Council will provide a schedule of the 125 sample properties it has been monitoring for some time, to show the potential movements in rates for the forthcoming year.

Council is required to adopt its Annual Plan before 30 June 2026, and will soon go out to its communities to seek feedback on its rates proposal.