Council proposes Annual Plan 2026-27 with lower-than-forecast average rates increase

Published: 26 March 2026

Hawke’s Bay Regional Council is continuing the momentum of its Three‑Year Plan 2024-2027 with councillors today agreeing there is no need to consult on the Annual Plan 2026-27.

 Regional Council Chair Sophie Siers says, “We’re on track with a forecast average rates increase of 5.2 percent down from 8.5 percent forecast in the Three-Year Plan, due to wide-ranging cost savings.

Our Annual Plan reflects careful choices to keep rates as affordable as possible, while still delivering the services communities rely on. Councillors and staff have taken a hard look at our budgets, our costs and how we do things, to reduce the amount we need to collect through rates.”

 Savings and funding changes include reshaping how land management services are delivered, including winding down the Erosion Control Scheme two years earlier than planned and moving to a more targeted approach to soil conservation, working closely with rural communities and catchment groups, and reducing the amount of grant funding currently required to run the programme.

 Council is also using $2.5 million from strong performance in 2025-26 by its investment company HBRIC to part‑fund some programmes, and has approved an increase in the 2026-27 annual dividend request from HBRIC from $13.5 million to $14.5 million.

 Other measures include deferring the repayment of rates-smoothing loans, and reducing staffing levels and operating costs, including a proposal currently under staff consultation.

Despite the lower rates increase, Council expects to meet all 55 service level targets set for the year.

 Under the Local Government Act, councils only need to consult on an Annual Plan if there are material changes from what was already agreed to in the Long Term Plan. Council concluded this was not the case for 2026–27.

The Annual Plan will be adopted before 30 June 2026.

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