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Funding Opportunities other than Rates to be Explored

20170425 170435

Wednesday 10 April 2019

 Opportunities to identify new revenue streams other than rates for Central Hawke’s Bay District Council became a step closer with Council adopting a new non-rateable income funding strategic framework at its meeting on Wednesday 10 April 2019.

 Given Central Hawke’s Bay District is a small TLA with significant funding pressures, the new non-rateable income funding strategic framework aims to identify and implement opportunities to create new revenue for Council, seeking to reduce the reliance of Council on rates to fund the range of operational activities and capital projects Council delivers.  Currently the two main sources of revenue are rates and subsidy from the New Zealand Land Transport Agency.

 Central Hawke’s Bay District Council faces significant funding challenges over the next ten years, in particular addressing under-investment in its three waters activities as part the #the big water story and responding to the increasing impact of weather events on the Districts roading network.

 A focus on increasing non-rateable funding has been a major focus of Council, recognising the high reliance on rates Council currently has and the limited alternative sources of income available.  The framework was adopted by the Finance and Planning Committee on 28 March 2019, with Council formally approving the strategy at its meeting on 10 April.

 “Affordability of our rates is a critical part of a Thriving Central Hawke’s Bay”, says Mayor Alex Walker.  “Through the adoption of this strategy we set clear direction to the council business to reduce our reliance on rates through a variety of mechanisms. This is not easy to do, but we want council to be thinking proactively and creatively about how we bring other funds into our community”.

 Funding pressures are not unique to just Central Hawke’s Bay District Council, and across Local Government there is a growing recognition of the funding challenges facing the sector.   The current Coalition Government also recognise these challenges, and have commissioned a full review into the Funding and Financing of Local Government, work that is currently underway. This work being led by the Productivity Commission and Is due to have a draft report completed by June 2019.

“The timing of this work positions Central Hawke’s Bay District well in demonstrating the significant funding challenges and opportunities, and has the potential to compliment the work underway at a national level”, says Chief Executive Monique Davidson.  “There is great opportunity for us to be leading the way in these transformational opportunities for our community to Thrive”.

On adoption of the framework, the Chief Executive will develop an operational work programme that looks to achieve the key initiatives over a three year programme. The work programme will look to prioritise those initiatives that Council have identified as of most importance.


Authorised by Chief Executive: Monique Davidson


28 June 2021

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