The vast majority of external debt for the region\u2019s councils has been borrowed from the Local Government Funding Agency (LGFA).<\/p>\n
Money borrowed from the LGFA includes interest payments, similar to borrowing from a bank, although the LGFA has lower interest rates in comparison.<\/p>\n
An explainer of external, internal and gross debt is included below.<\/p>\n
Hastings District Council \u2013 $454m external debt (up from $413m in late 2024)<\/p>\n
Hastings District Council, which now exceeds $450m in external debt, has had a rough decade in terms of borrowing money to respond to disasters.<\/p>\n
The Hastings District covers an enormous area and was the region hit hardest by Cyclone Gabrielle in February 2023.<\/p>\n
The council is still repairing roads, bridges and infrastructure, and was also hit the hardest financially by Category 3 house buyouts in Hawke\u2019s Bay<\/a>.<\/p>\n Prior to the cyclone, Hastings was already well over $200m in debt<\/a>, with a large part of that related to the 2016 Havelock North water contamination disaster, which led to significant upgrades to the district\u2019s water infrastructure.<\/p>\n As for the roughly $40m increase in external debt during the past year, a Hastings District Council spokeswoman said that money had gone towards \u201ccyclone response projects\u201d.<\/p>\n \u201cCurrent debt remains below projected Long-Term Plan levels and well within LGFA borrowing limits [of 280% of a council\u2019s annual revenue],\u201d a council spokeswoman said.<\/p>\n The council\u2019s Long-Term Plan suggests the council could reach $700m in debt by 2030, although it is currently below those projections.<\/p>\n The council increased rates by an average of 15%<\/a> in 2025 and by 19% in 2024.<\/p>\n It only has $3m in internal debt.<\/p>\n Hawke\u2019s Bay Regional Council \u2013 $117m external debt (up from $108m in late 2024)<\/p>\n Hawke\u2019s Bay Regional Council\u2019s external debt increased to $117m as at December 1, a rise of about $9m over the past year.<\/p>\n A Hawke\u2019s Bay Regional Council (HBRC) spokeswoman said increased debt went towards flood mitigation projects.<\/p>\n \u201cPart of this will be repaid by the Crown,\u201d she said.<\/p>\n She said the council was not concerned by its debt position, which was well within borrowing limits.<\/p>\n Positively, HBRC had over $16m in internal debt in late 2024, but now has no internal debt, according to the council.<\/p>\n HBRC increased rates by 9.9% on average in 2025 and by 19.9% in 2024.<\/p>\n Napier City Council \u2013 $110m external debt (up from $40m in late 2024)<\/p>\n Napier City Council saw the biggest rise in its debt position over the past year, rising by about $70m.<\/p>\n As at December 1, the council had external debt of about $110m, up from $40m a year prior<\/a>.<\/p>\n Remarkably, Napier City Council boasted no external debt<\/a> only a few years ago, in 2022.<\/p>\n A council spokeswoman said its increased debt over the past year was due to \u201ccashflow management of non-general, rates-funded capital expenditure\u201d.<\/p>\n Napier City Council has previously stated under-investment in assets has put pressure on the council to play \u201ccatch-up\u201d, including investing in water infrastructure<\/a>. The council was also impacted by Cyclone Gabrielle.<\/p>\n It has the most internal debt of any council in the region, which was slightly over $100m at mid-2025.<\/p>\n The council increased rates by 8.9% on average in 2025 and by 19.95% in 2024.<\/p>\n Central Hawke\u2019s Bay District Council \u2013 $47m external debt (down from $48m in late 2024)<\/p>\n Central Hawke\u2019s Bay District Council managed to slightly reduce its external debt over the past year \u2013 from $48m to $47m.<\/p>\n Outgoing CHBDC chief executive Doug Tate said the council \u201cproactively takes advice from independent treasury advisors to ensure we are prudently and responsibly managing our debt position\u201d.<\/p>\n Central Hawke\u2019s Bay District Council increased rates by 7.4% on average in 2025 and by 20% in 2024.<\/p>\n \u201cAn ongoing challenge for council and community is balancing building and renewing infrastructure in core work areas while maintaining affordable rates,\u201d Tate said.<\/p>\n The council has internal debt of $13m and gross debt of $60m.<\/p>\n Wairoa District Council \u2013 $10m external debt (down from $11m in late 2024)<\/p>\n