Basketball Hawke's Bay is facing a funding crisis with the body's board chairman asking councils to forgive almost $30,000 worth of debt.

According to the agenda for Napier City Council's city services committee, which will be held this afternoon, Basketball HB currently owes Hastings District Council $14,788, Napier council $14,004 and the Pettigrew Green Arena $22,506 for court hireage.

It was this debt that saw chairman Gerry Sullivan write to both councils applying for a community grant or remission of the debt.

"At the present time there is a shortfall in our funding which has resulted from a number of unbudgeted-for expenses and a changeover in the management and administration of Basketball HB," he said.


"We are a not-for-profit organisation and for the first time have found ourselves in a funding crisis.

"We have already applied for venue hire funding grants for the new year which we expect will provide payment to councils of between $80,000 and $100,000 in 2016, including the Pettigrew Green Arena."

Mr Sullivan said at present Basketball HB was not in a position to settle the account.

"However, we are hopeful that the council would consider a one-off community grant to Basketball HB to enable us to make payment in full satisfaction of the debt," he said. "We are not in a position to borrow funds nor would it be advisable for us to prop up operations in this way.

"We have reviewed our capacity to meet our other creditors and believe, with the councils grants, this will be possible although some delays and payment plans will be put in place."

In response it has been recommended by Napier council's director of corporate services Adele Henderson that instead of a grant it provide a one-off write off of the current debt.

If councillors choose to do this, Basketball HB is to provide monthly financial reports to Napier council until such time they are satisfied with the financial performance.

Moreover, the sports body is requested to take administrative support from Sport Hawke's Bay.

"A decision of council is required urgently because Basketball HB require certainty over their financial position," Ms Henderson said.

"This will require the following resolution to be passed before the decision of Council is taken."

Basketball HB is an incorporated society with the objective to foster, develop and control the game of basketball in Hawke's Bay.

It has been successful in doing that over the past 10 years since it was incorporated and now has more than 4000 registered players.