Council makes - and spends - less

"The difference was primarily due to the continued downturn in the oil and gas sector as well as the write-off of a number of council assets that had reached the end of their life."

Neil Volzke and Sven Hanne

The continued downturn in the oil and gas sector has contributed to a lower than expected surplus for Stratford’s council.

The Stratford District Council’s annual report for the 2016 to 2017 financial year, which was released on Thursday, showed it had an income of $16.7 million and operating expenses of $16.4m.

‘‘The difference was primarily due to the continued downturn in the oil and gas sector as well as the write-off of a number of council assets that had reached the end of their life,’’ Stratford mayor Neil Volzke and Stratford District Council chief executive Sven Hanne said in the opening statement of the report.

The overall net value of the council rose from $303.9m to $316.5m during the year, which was due to a revaluation of the council’s properties.

Revenue for the year was down by $583,000 from what was budgeted largely due to fewer fees and charges than expected, but operating expenses were also down by $229,000.

This resulted in a $292,000 operating surplus.

Volzke said it was important to make sure the council was running at a surplus and councillors and staff kept a close eye on the books to make sure that was happening.

‘‘I think it’s been a good year for us,’’ he said.

‘‘It’s reassuring to end the financial year with a small surplus and its good to know that we are able to live within our means.’’

The surplus would be put back into the council’s reserves and held there for times when it wasn’t able to meet its budget like in 2016, when damage from major flooding across the district created unexpected costs.

The million dollar upgrade of the library had been a highlight of the year, with the report noting it had taken out four national architecture awards since it was completed.

‘‘We’ve now got a first class facility there,’’ he said.

In total, the council received $11.3m in rates while the other 32 per cent of its revenue came mostly from subsidies and grants as well as fees and charges.

The council was also achieving in other areas - the town’s residents were mostly happy with their council, with around 96 per cent agreeing the town was safe, offered a healthy lifestyle and was an attractive place to live.

The 172 page report outlined the council’s work and spending over the year and said less vandalism in the town’s parks had resulted in a drop in spending on parks and reserves, while book purchases at the library were $14,800 under budget.

Councillors collectively earned $247,857 for the year, with Volzke being paid $69,319 for his mayoral duties.

That included the five councillors who finished their term at the end of the election term in October and the five new councillors who were elected in during the local elections.

Deputy mayor Alan Jamieson was the second highest paid at $23,648 while veteran councillor John Sandford earned $17,642.

The report, which was audited by Andrew Clark from Audit New Zealand, will be presented to council at an extraordinary meeting on Tuesday afternoon at 1pm, while the October policy and services meeting is due to start at 4pm.