Napier is looking at a possible record annual rates increase of over 20 per cent for the 2024-2025 year.

A statement from the Napier City Council, based on its Three-Year Plan consultation, due to open in March, says that, like, most councils, it faces a “challenging financial situation” and the proposed rates increase percentage for the year is likely to be in the “low 20s”.

A decision on the exact proposed figure is still to be made, and details on how future rates increases could be lowered will be shared during the Three-Year Plan consultation period.

Napier has striven over the years to keep annual rates increases below 10 per cent – but in the wake of Cyclone Gabrielle struck an 11.7 per cent increase for the current year.

Councils have been signalling significant rates increases for some years, particularly in the wake of the Havelock North water crisis of 2017, but according to Taxpayers’ Union and Auckland ratepayers association surveys Napier has regularly ranked 50th or lower on a table of highest-to-lowest rates among 67 territorial local authorities nationwide.

For the latest year reviewed (2021-2022) it had the third-lowest residential rates and the lowest non-residential rates,

Napier Mayor Kirsten Wise said Napier has many competing issues that all need attention.

“We need to take on these challenges and put in place firm foundations so we can build a bright future,” she said.

Challenges include increasing costs to maintain ageing infrastructure, managing the unexpected costs that have arisen from Cyclone Gabrielle, preparing for future climate-related emergencies, and significant cost increases across the board due to inflation.

“We need to stay focused on cyclone recovery while still providing the core council services the community needs and expects of us.”

“We’ve spent a lot of time looking at how we can keep the increase as low as possible,” she said. “But we must make sure we have the finances to continue doing the basics well. We’re thinking about doing some things differently to improve our financial sustainability, so in future our residents could benefit from lower rates increases.”

She signalled potential running of some of the council tourist facilities as commercial businesses and “putting together an income-earning investment portfolio to make the most of our financial resources.

“Our community consultation on the plan gives us an excellent opportunity to hear from our community on this and other decisions,” she said.

The council will consider the topics and options to be put to the community as it develops its Three-Year Plan 2024-2027 at its meeting next Thursday.

The consultation will share council’s plans for cyclone recovery, major capital projects for the next three years, proposed rates rises and other issues of interest to the community.

Napier council, along with other cyclone-affected councils, is not required by central government to develop a 10-year Long Term Plan for 2024-2034, acknowledging the effects Cyclone Gabrielle has had on council resources and the ability to deliver previously planned projects.

Instead, the council is preparing an unaudited Three-Year Plan, and key information on budgets and plans beyond June 2027 will be provided to give the community a picture of projects and activities over the longer term.