Plunge in value for council’s cash cow

New Plymouth District Council’s (NPDC) latest financial report shows an ‘‘unrealised’’ $14.5 million deficit for the first half of the 2018-19 financial year, against a forecast $1.6m surplus.

The deficit is because of a fall in the value of the council’s Perpetual Investment Fund (PIF), which was set up in 2004 following the sale of its shares in Powerco and is currently used to offset general rates. The fund dropped $13m in value to $274.5m as a result of volatile markets and $4.4m being released to NPDC, a meeting of the full council will be told today.

Overall, without the fluctuation of the PIF, the council recorded a deficit of $1.3m against a forecast deficit of $1.6m.

In addition, the council’s total assets are $20.7m higher at $2.5 billion compared to June 2018, and operating revenue was $76.1m, which is $4.1m more than budget.

Operating costs of $77.4m for the six months were $3.8m more than expected. This included $1.6m recoverable costs spent on Yarrow Stadium after both its main stands were closed because of earthquake risk. There was also $700,000 forestry harvesting costs, $700,000 professional fees because of more consent applications, and $500,000 worth of assets written off.

Also in the report were standards for council work, and the majority met targets.

Among the areas falling short were the number of library members, with

21,703 members, short of the 28,000 target, after a ‘‘cull’’ of old records in July.

Timely responses to formal complaints were also below standard, with 24 per cent not completed within five working days (26 replies out of 108).

Events bookings were on track, within five per cent, to meet targets of

280,000 attendees and 1000 events, but the council has reduced the expected number of attendees and bookings because of the closure of Yarrow Stadium’s east and west stands.

The report will be noted at today’s full meeting.