Wairoa was severely flooded during Cyclone Gabrielle Photo: Wairoa District Council's Emergency Controller
Wairoa ratepayers have already been granted some relief from a hefty rates hike proposed last week, with the council announcing it will now be slashed by a third.
Wairoa District Council initially blamed the proposed 15.4 percent increase as part of the draft annual plan on the massive cyclone recovery effort ahead, and spiralling costs.
But it said a higher shareholder dividend from a contracting company it owned, QRS, would bring the average rates increase to just under 10 percent.
Mayor Craig Little said he was grateful the QRS board decided to increase its dividend to support the community.
Wairoa mayor Craig Little. Photo: RNZ / Tom Kitchin
"This again shows the importance of a locally owned contracting company.
"We saw the benefits of having infrastructure and specialised staff on the ground in Wairoa when we were isolated due to Cyclone Gabrielle.
"Now our entire community will benefit through this intended increased distribution which is a credit to the QRS board, management and staff."
Little said the council was still seeking external funding to try and further reduce the proposed rates increase, which was still higher than the 7.8 percent forecast in the long term plan.
Wairoa District Council called on the community to give feedback on the annual plan over the next week, before it was formally adopted.