Council finances strong

Waipa¯ District Council entered the new financial year in a strong monetary position and with an operating surplus of $28 million.

At Tuesday’s Council meeting councillors adopted the 2017-2018 Annual Report, which shows growth continues to have a significant impact on council’s finances.

Chief financial officer Ken Morris said the end-of-year financial report shows the organisation has $1.6 billion of assets and $13 million of debt, significantly lower than most other councils.

Ken said debt will grow over the next decade as council implements its 10-Year Plan signed off in June this year. Council will invest $1.26 billion in capital works and operational services over the next 10 years, most of it in core infrastructure.

Community facilities include major new items like the new pool facility now being built in Cambridge and a new Discovery Centre to be based in Te Awamutu.

“In year seven of the 10-Year Plan, we are projecting Waipa¯ District Council’s debt to hit $180 million,” said Ken. “Our population is also projected to increase by a further 25,000 people by 2050.

“Given that, our 10-Year Plan is suggesting average annual rates rises of around 2.2 per cent over the coming decade, despite the very significant capital spend planned across the district.”

He said rates continued to form around 50 per cent of the Council’s total revenue.

“Council’s self-imposed limit puts the amount of our income reliant on rates at 65 per cent so we remain well within that,” he said.

“That clearly demonstrates council has diverse income streams and is not overly reliant on ratepayers to meet costs.”

The Annual Report showed a cash surplus of $423,000 after allowing for a small number of carry forward and other items.

“The surplus will be held in reserve until elected members decide how to use it,” he said.