August 31 2010
Waipa District has ended its 2009/10 financial year with a $2.4 million operating surplus despite significant impacts from the global economic crisis.
District growth slowed dramatically during the year, reducing the income received from reserve and development contributions (down 51 per cent from budgeted) as well as fees from planning and building consents (down 15 per cent from budgeted).
A sharp reduction in interest rates reduced the amount of investment income received.
Higher depreciation charges following the revaluation of land, building and road network assets in the 2008/09 year also impacted negatively on the end-of-year result.
In response to testing economic conditions during the year, Council slowed work on a number of planned projects, particularly those dependent on funding from reserve and development contributions like improvements to water storage capacity and the development of community parks.
Council spent only $25 million of a $32 million budgeted capital works programme by deferring some key projects. Payroll costs were reduced by nearly $1 million following an organisational restructure during the year.
The values of Council’s net assets increased by $39 million with the majority of the increase coming from the revaluation. Borrowings increased $6 million to $31 million – nearly $4 million less than had been budgeted for the year.
Copies of the 2009/10 Annual Report, and a summary of the Annual Report, are available from Council offices.
For more information, please contact:
Jeanette Tyrrell
Ph: 07 872 0097 or 027 293 8679
Email: jeanette.tyrrell@waipadc.govt.nz