Napier City Council reports record capital investment

Napier City Council has recorded its highest-ever capital investment, with $89.6 million spent across more than 150 projects in 2025-26.

The council says it delivered 62 per cent of its amended capital programme, which had a budget of $142.1 million, with 84 projects completed and another 72 multi-year projects continuing into 2026-27.

Napier Mayor Richard McGrath says the past year saw significant progress on projects across the city.

“This is the highest level of capital investment ever delivered by Council and it’s investment focused on maintaining essential services, improving resilience and supporting growth,” McGrath said.

Of the capital investment, $57 million went towards renewing existing assets, $19 million towards improved levels of service and $13 million towards growth.

More than $26 million was invested in water infrastructure, with $26.1 million spent across drinking water, wastewater and stormwater networks. That represented 81 per cent of the amended $32.4 million water infrastructure budget.

Other major spending included $24.5 million on the Te Kete civic precinct, $15 million on the transport network and $2.5 million on the Inner Harbour.

The Annual Report shows several major investments were rephased, meaning some planned spending will instead occur in future years.

About $10 million of expenditure on Te Kete that had been expected in 2025-26 will now occur in future years because a detailed cashflow forecast was not available when the budget was prepared.

Capital works at the Inner Harbour were also deferred while the council prioritised make-safe activities, resulting in an underspend of about $8.3 million.

A further $5.85 million underspend related to deferred investment in council facilities while strategic reviews were carried out, while about $4.3 million of planned Redclyffe Bridge expenditure shifted into 2026-27 as detailed design continued.

McGrath says the programme was delivered during a period of uncertainty around Government reform, asset reviews and affordability.

“It’s a programme that has been delivered successfully during a time of increasing uncertainty with Government reform, asset reviews especially of our commercial facilities and a focus on long-term affordability. These are the things that will need continued focus in the coming year and as part of planning for our next LTP.”

The council also recorded a $19.7 million deficit for the year, compared with a budgeted $6.7 million surplus.

Operating revenue was $183.9 million, $20.6 million below budget, mainly due to lower NZ Transport Agency funding, development contributions and investment property revaluation gains.

Operating expenditure was $203.6 million, $5.8 million above budget, primarily due to higher depreciation and amortisation costs associated with new infrastructure assets.

The Annual Report says the council retained $213 million of available borrowing capacity.

It also reported that 107 of its 138 service performance measures, or 78 per cent, were achieved or substantially achieved, while 31 measures were not achieved.

The 2025/26 Annual Report can be viewed here.