Council reflects on ‘year of adversity’

Covid-19, Rangitata River flooding and a hailstorm contributed to a ‘‘year of adversity’’ for the Timaru District Council.

Timaru District mayor Nigel Bowen agreed it had been a turbulent financial year when questioned on the 2019-20 annual report which will ratified at a council meeting on Tuesday.

The report, titled a ‘‘Year of Adversity’’, says it had been a particularly challenging financial year, with the Rangitata floods, the hailstorm and the ongoing impact of Covid-19.

‘‘It’s really been about rising above and working together,’’ Bowen said.

‘‘We’re now at the stage where we can look at our broader vision and strategy. The biggest challenge is still dealing with the unknown.’’

Councils had until December 31 to ratify their annual report because of the impact of Covid-19 with the report showing a total revenue of $89.3 million with an operating expenditure of $85.8m for a surplus of $3.5m, significantly less than its budgeted surplus of about $7m.

The report says the discrepancy was due to things such as depreciation costs $3.2m higher than budget due to the revaluation of the three waters infrastructure.

Operating and personnel costs were higher than budget by $2.9m due to the impact of the Rangitata flooding and the November 2019 hail events (additional emergency maintenance and personnel costs) and carbon credit purchases.

‘‘While the district has weathered these storms, their effects continue, particularly Covid-19, as it continues its scourge across the world,’’ the report says.

‘‘We are now in recovery phase

from these events, with council introducing initiatives such as the $2m stimulus fund and approving a lower rates increase.

‘‘There is much work to be done, and still many unknowns, including how the effects of Covid-19 will play out, but we will continue to monitor and evaluate as we move forward.’’

Of the 157 performance measures in the annual report, 69 per cent of targets were met, 9 per cent were nearly achieved (within 5 per cent of target), 22 per cent were not achieved, and one was not measured (the Civil Aviation Authority did not conduct an audit at Timaru Airport).

Bowen said most of the ‘‘not achieved’’ results related to ‘‘things that were outside our control’’.

‘‘A lot of them related to facilities, such as the library and CBay, being closed due to Covid.

‘‘It is what it is, it’s just been one of those years.’’

Bowen said the Government’s review of the three waters system would pose challenges.

He has previously expressed concern about proposals to create region-wide water authorities although the council did sign up to early consultation – a move that allowed council to access $6.8m in Government stimulus funding.

‘‘There’s a lot about the proposals which we just don’t know for sure. We don’t want to lose our autonomy.’’

Bowen said the economic outlook for the district was better than a lot of areas.

‘‘Our district continues to perform strongly when you consider the current climate.

‘‘You have the Fonterra factory at Clandeboye, the McCain processing plant, your DB Breweries and your Sanfords, all of which are well positioned. Our unemployment rate is about 3 per cent, and we’re looking for workers.’’

‘‘We’re now at the stage where we can look at our broader vision and strategy. The biggest challenge is still dealing with the unknown.’’

Mayor Nigel Bowen