Councils cut costs to trim rates

Cuts to personnel costs and travel at Napier and Hastings councils have been necessary to achieve lower rates increases.

In Napier, the lower rates increase is also largely attributable to fewer people coming to the city and using councilowned tourism facilities.

Both councils are consulting on their proposed rates increases, which were cut in light of Covid-19.

The Hastings District Council is proposing an average increase of 1.9 per cent, instead of the planned 4.4 per cent, and the Napier City Council is proposing an average increase of 4.8 per cent, instead of the planned 6.5 per cent.

The lower increases were to be achieved in Hastings through savings of $1.8 million in operating costs. In Napier, they would be achieved through savings of $3.7m in operating costs and by taking $6.74m from council coffers.

Stuff approached both councils for details on how the savings would be achieved.

Napier’s were to be achieved through cuts of $2m to the operational budgets of council-owned tourism facilities, $1.2m to cost of casual staff and general labour and $450,000 on plant and equipment purchases.

A spokeswoman said the $2m operational savings made at tourism facilities were due to lower costs resulting from fewer international visitors.

In Hastings, the council’s chief financial officer, Bruce Allan, said personnel costs would account for $1.4m of the $1.8m to be cut.

There would also be savings through training and associated travel and accommodation costs being put on hold, accounting for $270,000 in savings, he said. The remaining savings of $120,000 would come from corporate operational budgets.