
Published in HB Today – January 2024 – but just as relevant today.
This year is shaping up to be the year of big rate rises across all of Hawke’s Bay’s councils.
While a final figure had yet to be secured, Central Hawke’s Bay mayor Alex Walker said her ratepayers could be paying 20-30 per cent more, while Napier mayor Kirsten Wise has said “double digit rate rises” and Hastings mayor Sandra Hazlehurst has also raised rate rise expectations, due to ballooning council debt in excess of $400 million.
Consultation is vital and as a Hastings/Havelock North ward councillor I’m urging all ratepayers to have a big voice on rate rises and our Long Term Plan as Hastings ratepayers could face rate increases of $500 more than they are currently paying.
Hastings has undergone an amazing transformation over the past few years, with big spend-ups on our water infrastructure, the rebuild and refurbishment of Toitoi, numerous buildings purchased in the CBD as part of its revitalisation and new playgrounds at Cornwall Park, Flaxmere Park and St Leonards Park.
This has seen council debt rise from $152m in 2020 to $400m in early 2024 and interest payments on this debt is around $18m.
Last year’s cyclone is adding further debt with an estimated $800m to repair roads and bridges and a $50m contribution to buy out property owners in category 3.
The Government is helping foot the bill but ratepayers will also be contributing.
So what does this increase in council debt mean for you?
The last annual plan had an average rate rise was 8.7 per cent average but if rates rise to between 20-30 per cent, you can roughly work out what this could mean for you.
I went to the council website to compare rate rises since 2019/2020 on residential and rural properties such as our family property (lifestyle block), residential properties in Havelock North, Frimley and Flaxmere.
From 2019/2020 to 2023/24 our rates went up from $1892 to $3011 (up $1119), while the property in Reeve Drive, Havelock North jumped $3183 to $4256 (up $1073), in Frimley from $2391 to $3451 (up $1060) and in Flaxmere $1808 to $2613 (up $805).
So if rates go up by on average of 20 per cent or 30 per cent this means a general rate jump of $450-$675 in Havelock North, $295-$442 increase in Frimley and in Flaxmere between $130-$200.
Over the holidays I was approached by a ratepayer concerned about ongoing rate rises and that council needs to cut its cloth differently, stick to its core services with no more spending on “nice to have projects” as homeowners and tenants can’t continue to afford huge rate rises on top of the already cost of living crisis.
It’s a tough balance as we all like to live in a thriving city and district, enjoying the likes of Toitoi and having safe drinking water.
As we look to minimise the impact on ratepayers, I doubt we can rely on any significant central government “sugar hit” funding support going forward as they grapple with debt.
In my opinion, council needs to leave no stone unturned to make operational cost savings, while also look at deferring some projects and look to smooth out rate rises, rather than a big hit this year and then slight reductions in following years.
Council will also have to look at levels of service and perhaps lower expectations on things like maintenance of parks and reserves.
Last year (2023) an independent review on the future of local government was completed and having recently reviewed this, there’s little in the way of new revenue-generating ideas.
The review’s only answers are:
– to ask Government for greater revenue sharing between central and local government (which currently sits at 2 per cent of GDP) to form part of new city and regional deals
– for Government to stump up and pay rates on all Crown land
– to introduce congestion charging, bed taxes (Airbnb) and tourist levies
There’s a lot at stake and it is vital that you have your say on how your money will be spent. Contact one of your elected councillors and also participate in the formal consultation.
I have had the pleasure of knowing Damon Harvey for the past nine years. For six of those years we sat along side each other as Councillors for the Hastings/Havelock Ward of the Hastings District Council. There are so many things that impress me about Damon. He is a proud Hastings man through and through, having completed all his education firstly at Flaxmere Primary then Mahora, Parkvale, and Hastings Intermediate followed by Hastings Boys’ High School. Having previously worked in Havelock North he is therefore intimately connected with every corner of Hastings. He is literally a self made man, having built up a successful business which has tightly connected him with the whole gamut of Hastings’ businesses and industries. He has a total understanding of Hastings people; what matters to them, what they value, how they live and how they play. He knows the reality of family life and the struggles that many in our community grapple with. The ‘reach’ that Damon has is immense. He is a keen sportsman and consequently is the ultimate team player, however he is also not afraid to ruffle a few feathers and ask the hard questions. Damon is passionate, approachable and articulate and possessed of a fine sense of humour. He can relate to people from all walks of life and is a strong advocate for our city and district.
Geraldine Travers MNZM
I have real pleasure in fully endorsing Damon Harvey in the up-coming Local Authority elections. He is one of the younger emerging leaders of the District, having demonstrated his leadership skills of an organisation during his maximum 9 years tenure as Chair of Sport Hawke's Bay. Damon well understands the fiscal challenges Hastings District Council and other NZ Councils face today in delivering the range of services required by their citizens. He is a pragmatist and has a balanced approach to best meeting all the current fiscal challenges, whilst having a visionary mind for the needed mid to longer term solutions. In summary, Damon has all the experience over 8 years as a Hastings District Councillor, along with the skill sets to successfully lead an energetic visionary thinking Council into a vibrant and sustainable future.
Sir Graeme Avery
I am 110% in support of Damon’s candidacy. Damon is an experienced and proven performer. He is an outstanding communicator who relates extremely well with people from all walks of life. He has real strengths in strategic planning and very strong connections with both our economic and business communities. Damon also has the energy, the drive and the passion to ensure that Heretaunga / Hastings will continue to be the powerhouse of Hawke’s Bay. I have been very impressed at his ability to sense where there is a need and give it his whole- hearted support. Mates 4 Life is just one example of his prowess in this area. I make these comments after nine year’s experience working alongside Damon when he was Chair of Sport Hawke’s Bay and more importantly as a Councillor colleague.
Malcolm Dixon - Hastings District Councillor.
My contact with Damon goes back more than 15 years. We have developed a professional relationship, and as a constituent, I have been following his public service on the Hastings District Council. His work through the Profit magazine and other endeavours has benefited many businesses throughout the region. From acting as a sounding board to developing marketing strategies and other initiatives, Damon has helped many individuals formulate ideas, branch out in new directions, and transform our region along the way. As a public servant, Damon isn’t afraid to be transparent with his constituents and others when it would be far easier to keep silent. Silence is the catalyst for the erosion of trust and integrity. Trust and integrity are key pillars when working with others with whom you may disagree. Finding common ground on key issues stands on the trust that you are true to your word, and the integrity that you are willing to work beyond disagreements for the good of the community. Damon has earned and demonstrated both. To my knowledge, Damon has attended every council meeting, cast every council vote, and attended most council events. Damon lives what he espouses. Hastings has much to offer, and he seeks to see that flourish.
Dr Tom Hartley
We have had an over two year battle just to get HDC to do their job - we had zero traction until Damon got involved - I can only assume the inside persuasion and diplomacy involved, and we are grateful! I am confident Damon will continue to hunt for and implement best practice, and support ratepayers through pragmatic process change. I wholly endorsing Damon.
Ian Purdon - Longlands resident.
I have had the privilege of working alongside Damon Harvey as a Trustee of the Mates 4 Life Charitable Trust since early 2020. Since then, Damon has consistently demonstrated strong leadership and with a genuine commitment to the success of the Mates 4 Life programme. His ability to listen, understand, and address the needs of those we reach has been instrumental in the success of our initiative, one which has gone from strength to strength.
Damon's strategic thinking and problem-solving skills have helped us navigate challenges as they arise, ensuring that our programs are effective and impactful. His collaborative approach fosters a sense of unity and purpose among team members, making him a key asset to the organisation.
Damon's creative mindset and ability to think outside the square have been particularly valuable in developing innovative approaches to the work we do. His forward-thinking approach helps to ensure that as a board we are always mindful of the long term future. Importantly, his creativity is balanced with a strong sense of financial literacy and this means financial considerations are always a key element of his decision making process.
In addition to his Council work, and underpinned by a foundation of resilience, Damon has shown a remarkable ability to balance his Council commitments with business activities, community involvement, personal health and well-being, and importantly, family time. His level of self-care sets a very good example to the rest of us.
I am confident that Damon Harvey's genuine care for people and a passion for the work he does, coupled with his proven track record of success puts him in a strong position to continue in the role of Councillor for the Hastings District Council. His vision, integrity, and unwavering commitment to improving the lives of others will undoubtedly benefit our community.
James Truman - chair of Mates4Life Hawke's Bay
"I've known Damon for a long time; he's been an unwavering advocate for Hawke's Bay. His balanced focus across business, sport, and media truly sets him apart, bringing immense energy and support to our community.
Damon's integrity is remarkable. He sticks to his beliefs and excels at bringing people together. The Profit business magazine and The Profit Unleashed business events perfectly showcases this, elevating our region's businesses and inspiring countless others. He builds respected platforms and launches successful ventures, consistently lifting the bar.
His understanding of our community means he'll hit the ground running as a councillor. Damon's focus on GDP and innovation is exactly what Hawke's Bay needs for future prosperity. He has my full support for re-election."
Luke Irving - local business leader
John Newland
I reached out to Damon a couple of years ago with a Council related matter. He was quick to respond, willing to help, and his intervention was pivotal in achieving a positive resolution that had a significant impact on our situation. Damon is approachable and a great communicator. He clearly has an ability to connect with individuals across diverse backgrounds, and in my experience, he has demonstrated exceptional leadership and a dedication to our community. Damon's successful Unleashed events this year have illustrated his ambition and forward-thinking approach, and he’s clear advocate for the success of Hawkes Bay, its people, and businesses. His commitment to personal health and wellbeing resonates with me and it’s an important component of life and leadership that is rarely promoted in his capacity. I am confident that Damon will continue to drive meaningful change, and I express my strong support for Damon in his re-election campaign for the Council.
Ben Hamelink - resident of Hastings
I have known Damon Harvey for many years and upon returning to Hawke’s Bay with my family I sought a position on the board of Sport HB of which Damon is Chairman. In the 18 months I have been on the board I have found Damon to be an exceptional Chair. He doesn’t shy away from the difficult decisions or conversations that need to be had and makes sure that all points of view around the table are given an opportunity to be heard.
Damon has been instrumental in recruiting a youth voice for the board, something I see as vital across many areas of governance. Damon has a strong relationship with our very capable CEO and this makes being a member of the board chaired by him both stimulating and rewarding.
Andrew Castles - Former Sport HB board memberAndrew 'Butch' Castles
I have known Damon Harvey for over 15 years in his role as our Marketing agent for Cottages NZ.
In that time he has provided his skills and guidance to our business, including encouragement to enter the HB Chamber of Commerce Business awards that led our business to success in 2006 and 2007. His ability to listen and then convert our ideas into practice has been a commending attribute to the skills he has.
Damon has always been a supporter of new initiatives and ideas that is pertinent to the potential leader of our community. He is able to converse with all members of the community from business owners through to the Sporting Community and families of all walks in life.
I have seen Damon develop professionally in the various roles he undertakes with community interests such as Sport Hawkes Bay, Jarrod Cunningham Youth Sports Trust - etc outside of Council.
Within Council he leads the Economic Development portfolio where his experience with the business community is well recognized. Damon has the ability to extract the relevant information from people and then to provide the relevant solutions/ options to be considered when solving a problem.
I have no doubt that Damon has the skills and experience to be Mayor Hastings.
John Roil - Hastings business owner and former Hastings District councillor
John Roil - Hastings business owner