Building activity brings in cash
Council coffers are up, thanks to higher than expected building activity in Central Otago.
The profit and loss report for the three month period ending September 30 shows a surplus of $452,000 against a revised budget deficit for the period of $1.3 million.
Financial accountant Sue Henderson, who presented the report to the Central Otago District Council at its meeting on Wednesday, said their income of $9.9m exceeded budget by $717,000 or 7.2 per cent.
❚ An increase in building permit income by $233,000 due to higher than anticipated building activity. ❚ An increase in development and reserves contributions by $579,000 which is in line with increased building activity. Contributions are largely associated with Cromwell and include Stage 4 Gair Estate, Stage 5 and 6 Stowell Drive, early childhood centre plus several individual property developments. The development levy is charged against subdivisions and developments to ensure those who create the demand for additional services and assets pay fairly and reasonably for this. In the past quarter, 265 building consents were issued at a value of $49m - up 34 per cent from the same time last year and an increase of 105 per cent in value compared to the same time last year.
‘‘The significant increase in the number of building consent applications is having an effect on building inspection numbers in Cromwell, with a second building inspector required most days for inspection,’’ the council’s quarterly report says.
There were nine new dwellings in Alexandra; four in Earnscleugh/Manuherikia; 21 in Cromwell, worth a total of $10.7m.
Central Otago mayor Tim Cadogan said there was no doubt ‘‘these are very good times economically for the Central Otago district’’.
The increase in building consents being issued was just one indicator of that, he said. ‘‘While the bulk of the growth has been Cromwell based, undoubtedly the recent announcement of the Centre for Space Science Technology bringing 23 FTE new jobs to Alexandra will see increase in growth in the Alexandra and Clyde area as well. All this is good news to the council and the ratepayer, as the more people coming to the region means more people to share in the cost of the community infrastructure.’’
Development of a new retirement village in Cromwell is part of a building-activity boom in the town.