More than $9m in rate arrears is owed to Hawke’s Bay councils for the financial year 2024/25.
Hawke’s Bay councils are owed more than $9 million in unpaid rates for the 2024/2025 financial year, with Wairoa residents struggling the most to pay their bills.
Wairoa homeowners now owe $2.17m in rates to the council, more than double what they owed a year ago.
Wairoa District Council chief executive Matt Lawson said the more than $2m was high considering its low population base.
Homeowners owed an average of $1244 in rates to the council for the year across 1744 indebted properties. There are 6576 rateable units in the Wairoa District.
“Wairoa people are struggling in the aftermath of Cyclone Gabrielle and the flooding that resulted from the bar not being opened in June last year,” Lawson said.
“We still have 150 yellow-placarded homes. The council is working through a range of processes from flexible rate payment options to enforcement proceedings and rating sales for long-term entrenched rating debt.”
Eight properties were at various stages of rating sales, with at least 19 mortgage demands in process.
In the 23/24 year, $952,000 in rates was owed to the council.
A spokesperson said the council has had to apply to the court for an order to sell a property to recoup rate arrears on “several occasions”.
“This is only taken as a last resort, and the council’s preference is to work with ratepayers to manage any situation where there are rates arrears.”
Hastings District Council
After a 15% rate increase, arrears for 2024/25 were $3.7m in Hastings.
This was down on the 2023/24 financial year - the first full year after Cyclone Gabrielle smashed the district - when $4.9m was owed.
“Many people have set up payment arrangements and the council continues to support its ratepayers,” a Hastings council spokesperson said.
In 2024-25, a total of 2232 ratepayers owed on average $1655, while, at the same time, for the previous financial year, 3590 homeowners were behind in their payments on an average of $1352.
As of August 8, 2025, the Hastings district had 34,654 rateable units.
There were 21 legal processes to recover rates debts under way.
Since electronic records began in 2013, the council has applied seven times to the court for an order to sell or lease a property to recoup money.
However, these were mostly settled, with only one property sold in 12 years. One is currently going through the process.
Napier City Council
In Napier, ratepayers owed just over $1 million for the 2024/2025 period.
A Napier City Council spokesperson said the council was always willing to help people having difficulty meeting their rates.
“We can work out a payment plan and provide information on support they might qualify for. The best thing to do is to call us as early as possible.”
There were 1662 properties owing a total of $1.04m, an average amount of $626 each.
Napier has a total of 26,506 rateable units.
There were no legal processes under way, however, in the last five years, there have been six, with three resulting in house sales.
Central Hawke’s Bay District Council
The council’s chief financial officer Brent Chamberlain said its rate arrears were measured as an accumulation over time.
“Some of the figures in the 2024/2025 financial year originate and appear in previous financial years,” he said.
The council had $792,000 in rate arrears at the end of the 2024/2025 financial year, split over 626 properties owing at least $1 or more.
The average arrears for those properties was $1265.
In the 2023/2024 financial year, the total arrears were $748,000 across 752 properties owing $1 or more. The average arrears were $995.
The town had 8144 rateable units in 2024 and 8395 in 2025.
Chamberlain said five properties were currently undergoing legal processes.
“It is extremely rare for a judgment to result in a forced rating sale, as the owners normally refinance first to avoid this happening.
“There are three properties that have court orders issued attached to them, including a longstanding debt and an individual’s ideological dispute to paying rates, rather than their ability to pay,” Chamberlain said.
Hawke’s Bay Regional Council
A regional council spokesperson said as of June 30, 2025, a balance of $1.98m was outstanding for the 2024/25 rate year, excluding penalties.
It was owed by 5373 properties, though 578 had less than $10 outstanding, an HBRC spokesperson said.
The average balance for 2024/25 arrears was $369, while for 2023/24 it was $338.
The council has 74,178 rateable units.
There were no legal processes under way.
For help
All councils in the Hawke’s Bay region have a rates rebate system. To find out if you are eligible, contact your council.
All five councils encouraged ratepayers to make contact if they were having difficulty paying their rates to discuss a plan.
LDR is local body journalism co-funded by RNZ and NZ On Air.