The Whakatāne District Council’s audited Annual Report for the 2016/17 year highlights a number of financial and operational impacts resulting from the devastating cyclone events that struck the District in April this year.
The Annual Report was adopted by the Council last week and indicates that a small rating deficit of $381,000 and an overall operating surplus of $4.04 million were recorded for the year ending 30 June 2017.
Mayor Tony Bonne says a number of factors contributed to the rating deficit. “Water rates income was $197,000 under budget, and the other significant factor was $171,000 in unbudgeted costs associated with the Whakatāne Holiday Park.”
“Operating expenditure was impacted by a number of positive and negative influences. We had been budgeting for a $6.4 million surplus, but costs relating to the April flood emergency event – particularly waste management costs – resulted in an $8.4 million overspend in our ‘other expenses’,” he says. “A large proportion of the waste management expenses is expected to be recovered from the Earthquake Commission, Ministry of Civil Defence and Emergency Management and insurance payments.
“Other positive factors were gains of about $1 million in both reduced depreciation costs and finance costs, as a result of lower than expected capital expenditure and lower interest rates respectively.”
A revaluation of Council-owned land and buildings also contributed $1.9 million to the operating surplus.
Key Council financial benchmarks for the year – including limits on rates increases, debt and interest as a proportion of rates revenue – were achieved.
Mayor Bonne says the Annual Report also records how well the Council performed in meeting its service delivery goals for the year. “We set challenging goals for all of our key services and facilities, and it was pleasing to see that a significant proportion of those goals were met or surpassed. Despite the major impacts of the April emergency on our water supply, wastewater, stormwater and roading activities, and the need to redeploy staff throughout the organisation to the emergency response and recovery activities, 78 percent of our 92 non-financial performance measures were achieved. Under the circumstances, I believe we can be very proud of that outcome.”
The full Annual Report 2016/17 will be available on the Council’s website by early next week, with hard copies also available for inspection at Council offices and District Libraries by the end of November.