WEATHER events, supply chain issues and ongoing effects of the pandemic are behind a drop in council finances reported in the Waitomo District Council finance report for the period from July 1 to December 31.
The net operating surplus of $2.5 million was $3.4 million less than budget for the period that ended December 31, 2022, council business manager Alister Duncan said.
Total council revenue for the year ending December 31, 2022, was $2.2 million less than budget.
The council still recorded a surplus of $2.5 million for the period, Alister said.
Subsidy revenue from Waka Kotahi was less than budget.
As capital expenditure was less for the period, the associated subsidy was also below budget. Income from construction was recognised for construction services revenue for the stadium. An equivalent amount was also in expenditure.
Other fees and charges were below budget due to a reduction in refuse charges from reduced waste being deposited, reduced building control income due to a reduction in building activity and less hireage revenue for the Les Munro Centre.
Expenditure for the period was $1.1 million more than budget. This was due mainly to roading being more than budget because of weather events, leading to emergency reinstatement of roads and associated networks.
This was partly offset by reduced landfill operational expenditures for solid waste and reduced expenditure for the regulatory services.
Depreciation cost more than expected because of a revaluation of buildings, water, wastewater, and stormwater assets, roads and solid waste assets at June 30, 2022, which increased asset values and their corresponding depreciation expense.
Total assets increased by $3.5 million since June 30, 2022 to $510.8 million. This included an increase in receivables for Waka Kotahi subsidy, rates receivables and GST refund receivable. There was also an increase in non-current assets for asset additions less depreciation charged on property, plant and equipment.
Total liabilities increased by $1 million since June 30, 2022 to $36.8 million. This included an increase in borrowings of $4.5 million to $32.7 million and a reduction in other liabilities of $3.5 million.
The reduction in other liabilities was due to a decrease in revenue in advance and general payables since June 30, 2022.
Capital expenditure for the period was $7.3 million, against a full year revised budget of $26.6 million. Included in total expenditure was $2.7 million related to the stadium right of use.
The remaining $4.5 million spent to date equated to 17% of total capital works planned for the year.
Total roads capital expenditure for the six month was $1.6 million, against a full year revised budget of $16.9 million.
Roads and footpaths capital expenditure accounted for $15 million of the unspent capital expenditure programme.
Most of this work was expected to be completed before the end of the financial year, Alister said.
