Hawke’s Bay Regional Council reports record $75.1m capital spend

Hawke’s Bay Regional Council spent a record $75.1 million on capital projects in 2025-26, including $58 million on flood resilience.

The council adopted its Annual Report for 2025-26 today, highlighting major post-Cyclone Gabrielle recovery and resilience work across the region.

Council chair Sophie Siers says significant progress has been made since Cyclone Gabrielle, but more work remains.

“Nearly four years on from Cyclone Gabrielle, we’ve achieved a huge amount, but there is still plenty of work ahead of us.”

Capital expenditure was up from $24.4 million the previous year, but remained below the $133.5 million budgeted for 2025-26.

The annual report says the underspend on the North Island Weather Event Flood Resilience Programme was largely due to physical works being deferred.

Resource consent delays and design changes pushed the start of construction on four significant projects into the following financial year, while seasonal weather slowed construction during May and June.

Despite the delays, the council says most projects entered construction during 2025-26, with one completing construction within the financial year.

The Waiohiki flood resilience scheme was finished in May 2026. The report says new stopbanks at Ōhiti and Pōrangahau were expected to be completed by the end of 2026, with Whirinaki expected in April 2027 and Pākōwhai in mid-2027.

The report also says 242 properties across Hawke’s Bay have had their post-Cyclone Gabrielle risk category lifted.

The council finished the financial year with an operating surplus of $78.5 million, compared with a budgeted surplus of $45.7 million.

Chief executive Vaughan Payne says the higher than budgeted surplus primarily reflects the timing of Government funding for cyclone recovery and flood resilience, as well as the timing of infrastructure delivery.

“The operating surplus does not represent cash available for new spending.”

After accounting for capital expenditure and funding committed or reserved for future work, the council says $347,000 remained as a general funds surplus available for unexpected expenditure in future years.

More than 70 per cent of the council’s operating revenue came from sources other than rates, including Government grants, subsidies, investment income and insurance recoveries.

The council also received $16.4 million from Hawke’s Bay Regional Investment Company, which it says helped fund council activities and reduce reliance on rates.