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.

Rea­sons in­cluded:

❚ 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.

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