Hastings District Council says its latest financial results show the organisation is tracking better than budgeted, with no additional borrowing taken on during the third quarter of the financial year.
The forecast is for Council to end the year in a stronger financial position than originally budgeted if current trends continue, with lower debt levels and operational spending tracking below budget.
The update was presented to Council’s performance and monitoring committee yesterday in a paper on financial results for the nine months ending 31 March 2026. It showed Council’s net debt sitting at $461.7 million.
Forecast year-end external debt is now expected to be $507.7 million, $49 million lower than the $549 million budgeted in the 2025/26 Annual Plan.
Mayor, Wendy Schollum said the latest results reflected careful financial management while continuing to deliver essential infrastructure and recovery projects across the district.
“Council is managing one of the largest work programmes this district has ever had, including roads, bridges, water, wastewater, stormwater, growth infrastructure and Cyclone Gabrielle recovery. These are not optional extras. They are the basics our community and economy rely on every day.”
“The encouraging part of this report is that we have not needed to borrow during the latest quarter, and our year-end debt is forecast to be lower than budgeted. That matters because every dollar we do not need to borrow helps reduce future interest costs for ratepayers.”
Total operational expenditure was $7.6 million lower than budget, largely due to timing differences in spending and, where possible, rescheduling planned projects into future financial years.
Staff costs were $1.6m below budget due to holding vacancies across a number of teams and a reduced need for summer staffing at Splash Planet, after Council resolved to open for fewer days than planned in the lead up to Christmas while students were still in school.
Lower landfill volumes reduced both revenue and operational costs during the quarter.
While total income was also below budget, much of that related to lower external subsidies and grants, reflecting the timing and delivery of capital projects rather than lost funding opportunities.
Council’s capital programme remains significant, with $135.9 million spent in the first nine months of the year, including $59 million on Cyclone Gabrielle recovery projects.
“Before Cyclone Gabrielle, Council would usually spend around $80 million to $100 million a year on major infrastructure and asset projects. We are now delivering more than double that, largely because recovery and resilience work has had to sit alongside the normal renewals and upgrades needed across a growing district,” Mayor Schollum said.
She said Council remained focused on balancing financial discipline with the delivery of key projects for the community.
“The financial pressure has not gone away. Keeping that pressure front of mind remains Council’s top priority.”
“Our community still has major recovery, infrastructure and growth costs ahead, but this report shows careful management is making a difference, while still delivering the work our district needs.”
