Global unrest factored into new rate for Hurunui

Council rates for Hurunui District residents for the next financial year were set at today’s Council meeting.

The overall rate increase will be 7.15%, however, after allowing for growth as estimated in the Long-Term Plan of 1.84% for the 2026/27 year, the growth adjusted increase will be 5.31%.

Chief Financial Officer Jason Beck said as a result of the recent rating revaluation undertaken by QV,as required every three years, that the actual increase in rates will vary from property to property.

“It will also be dependent on the services that the property is connected to,” said Beck.

He added that total rates for 2026/27 are set at $36,813,233, of which $14,722,712 is set for three waters which Council will collect on behalf of the joint Water Council Controlled Organisation, Kaikōura Hurunui Water Services Ltd (KHWS).

This will come into effect tomorrow, 1 July.

“For the 2026/27 year, there will be no change to how the rates bill looks, but this is expected to change for the 2027/28 year, when KHWS is responsible for setting charges for drinking water, wastewater and stormwater,” said Beck.

In accordance with the setting of the rates, the Annual Plan for 2026/2027 was also adopted. This sets the budgets for the next 12 months and, apart from key changes, are largely based on the budgets set in the third year of the 2024-34 Long Term Plan.

Part of the Annual Plan adoption was the additional adoption of the recommendation that Council is budgeting to record an operating deficit of $6,497,946 for the 2026/2027 year.

Beck emphasised that it is financially prudent to do so.

“It is mainly due to continuing the Council’s policy of not funding depreciation on roading assets and a range of community buildings.”

In relation to this, Beck added that one of the issues facing Council in the future is how to fund the replacement of bridges, which will be reviewed as part of the forthcoming 2027-37 Long Term Plan preparation.

The Annual Plan allowed for an increase to the roading programme of $1.75 million due to the increase to fuel costs caused by the recent unrest in the Middle East. That increase has been offset by the use of a roading reserve of $1.2 million, resulting in an increase to the Roading Rate of $550,000.

That increase in fuel costs has also affected waste contracts and Council’s plant account.

Beck outlined that some of the other Council cost increases are in relation to the provision for the elected members remuneration for a South Ward Community Board, $1.2m allowed for as capital expenditure for the extension of Grierson Avenue in Amberley Beach, amendments to the budget for the development of Motunau Beach sections, an allowance for cost relating to the Amberley Beach Proactive Relocation project, and changes to the operating position and the capital expenditure programme for the Hanmer Springs Thermal Pools and Spa.

Mayor Marie Black acknowledged that the Annual Plan is a reflection of the priorities, aspirations and challenges of the district, balancing the need for the continuation of the delivery of essential services that Hurunui’s communities rely on while also planning responsibly for the future.

“There is no doubt the year ahead will require continued discipline and thoughtful leadership as we navigate for a well prepared future together,” said Mayor Black.