Key Points
- Current Hawkesbury City Council debt: $54.809 million
- Council total borrowings in 2021 was $1.3million and has dramatically escalated past 5 years to $54.809 million.
- Potential additional borrowing for Richmond Pool: Approximately $43 million
- New commitment: Annual Report to include a dedicated section explaining Council borrowings and other key financial matters.
Hawkesbury ratepayers will soon receive a clearer picture of the Council's financial position after Hawkesbury City Councillor Nathan Zamprogno successfully pushed for greater transparency in the way Council reports its debt.
The move comes amid ongoing public debate about the Council's finances, including the recently approved Special Rate Variation (SRV), major infrastructure projects and increasing community concern over rising borrowings.
Speaking during a recent Council meeting, Cr Zamprogno questioned why one of the most fundamental measures of Council's financial health, its debt, was not presented in a simple and accessible way for residents.
"Do you know how much debt Council is in? No? Would you even know where to look?" he asked.
Cr Zamprogno said many ratepayers would expect the Council's Annual Report to clearly show how much debt the organisation carries, how that figure has changed over time and how Hawkesbury compares with neighbouring councils and councils of a similar size.
"I suspected I would have to fight to get something quite simple, a better summary of Council's debt in the Annual Report," he said.
Instead, Council staff agreed with the proposal and committed to improving financial reporting.
In correspondence provided to Cr Zamprogno, Council advised:
"It is acknowledged that Council, due to the Special Rate Variation, major projects funding and media climate is in a position where accurate and forthright information pertaining to its financial position is of value to stakeholders.
"With this noted, Council will develop a section within its 2025/2026 Annual Report on borrowings and other financial matters of importance. This will be actioned by relevant teams developing the Annual Report."
Cr Zamprogno welcomed the response, thanking Council staff for their willingness to improve transparency.
Debt has grown from zero
Cr Zamprogno also highlighted the scale of the Council's borrowings.
According to figures he presented, Hawkesbury City Council's current debt stands at $54.809 million.
He noted that in 2009, the Council had no debt.
The increase reflects years of borrowing to fund major capital works and infrastructure projects.
Richmond Pool project a major concern
One project attracting particular attention is the redevelopment of Richmond Pool.
Cr Zamprogno said the project's escalating costs could require Council to borrow an additional $43 million, substantially increasing the Council's debt burden.
He said the projected increase in borrowing was the reason he had reluctantly withdrawn his support for the project.
"The Richmond Pool project cost blow-out alone may add an additional $43 million of debt to Council, which is why I regretfully had to withdraw my support for it," he said.
Why debt matters
Local government debt is not inherently problematic. Councils commonly borrow to fund long-life infrastructure such as roads, sporting facilities, libraries and community buildings, with the expectation that future generations who benefit from those assets also contribute to their cost.
However, the level of debt affects future budgets because borrowings must be repaid through a combination of principal and interest. As debt rises, a larger proportion of Council's annual income is committed to servicing loans rather than funding day-to-day services or new infrastructure.
The issue has taken on greater significance in Hawkesbury following the approval of the Special Rate Variation, which will increase rates over coming years to strengthen Council's long-term financial position.
Greater transparency welcomed
Cr Zamprogno said residents deserve easy access to understandable financial information so they can judge how effectively their Council is managing public finances.
The inclusion of a dedicated section on borrowings in the 2025–2026 Annual Report is expected to provide ratepayers with a clearer explanation of:
- Council's total debt;
- how borrowings have changed over time;
- what the debt has funded;
- how the Council compares with similar councils; and
- the broader financial context affecting future budgets.
The additional reporting is expected to be included when Council releases its 2025–2026 Annual Report later this year.
