Council ends year with surplus
16 August 2016
Waipa District Council looks to have ended the financial year with a cash surplus of just over $890,000.
The draft unaudited Annual Report shows Council ended the year to June 30 2016 with $891,200 surplus cash after making provision for a small number of carry forward and other items.
Chief financial officer Ken Morris said the cash surplus came from increased revenue from fees and charges, largely driven by an 18 per cent increase in building consents.
The books have also been boosted by a further $337,000 than budgeted from investment funds. At the same time, the Council had reduced the amount of interest it paid to banks by $209,000 and had spent less than budgeted on salary costs, he said.
The cash surplus is a reflection of both a fast-growing district and of prudent financial management, Morris said. The surplus funds will be held in reserve in case they are needed for the coming year and given the level of growth the district is seeing, might be necessary.
If not, it's most likely the money will be used to reduce next year's rates but that is something for elected members to decide during next year's annual planning process.
The draft Annual Report shows Waipa had an end-of-year debt of $13.2 million and a cash balance of $15.5 million. Morris said this level of debt was relatively low in comparison to other councils, despite Waipa continuing to invest heavily in core infrastructure including roads, water and waste water. During the year, a total of $43.6 million was spent on capital works throughout the district.
Waipa District Council's total revenue for the 2015-2016 year was $94 million. The Council ended the financial year with net assets of more than $1.3 billion mainly in land, buildings and major roading and water infrastructure.
A staff report noted Waipa District Council continues to comfortably meet the benchmarks and limits put in place to measure the financial health of all councils in New Zealand.
Waipa mayor Jim Mylchreest said the Council's finances were very sound.
They reflect a district which is being well-managed and which continues to invest first in the kind of important infrastructure we need, he said.
The Annual Report is currently being audited and is likely to be formally adopted by the Council next month.
Media enquiries, contact Jeanette Tyrrell (on behalf of Council) 027 5077 599