Council adopts Annual Report 2018/19

Thursday, 10 October 2019

Waitomo District Council adopted the audited Annual Report for the last financial year to 30 June 2019, at its Council meeting on 8 October 2019. This meeting was the last meeting of Council for the current three-year term, before the local body elections on 12 October 2019.

The report which outlines Waitomo District Council’s financial and non-financial performance over the 2018/19 financial year to 30 June 2019, was given a fully unqualified audit opinion (a clean bill of health) by Council’s Auditors. The Council’s overall results record a surplus of $4.9 million against a budgeted surplus of $3.2 million, largely due to expenditure being less than budgeted.

Public Debt Reduces 

Debt was forecast in the Long Term Plan 2018-28 to be $47.5 million in the 2018/19 year. Actual debt was $40.26 million at 30 June 2019. 

Council borrows money for large projects that will provide services to the community for a long period of time. This ensures that today’s ratepayers pay only for the services and assets which they use now, and not for benefits that will be received by the community in the future. In keeping with this financial prudence and sustainability principle, Council has established certain borrowing parameters to ensure that investment priorities are carefully managed within the reach of the Waitomo ratepayer community.

The reduction in interest costs demonstrates Council’s continued efforts towards liability management and the objective of lowering the costs of borrowed funds.

The table below illustrates that actual debt has continued to reduce against forecast levels over the last three years, despite Council continuing its focus on Good Asset Stewardship by investing $10.1 million in Capital projects to renew or develop our public assets.

   2017  2018  2019
Forecast Public Debt (LTP) $000’s   54,628  53,645  47,565
Actual Public Debt $000’s    43,419  41,737  40,261
$ Trend $000’s (LTP forecast and Actual)    -11,209  -11,908  -7,304
% Trend    -20.5%  -22.2%  -15.4%

 

Key projects undertaken in the 2018/19 financial year include the construction of a new playground in Maniaiti / Benneydale, installation of a new basketball area in Eketone Street Te Kuiti, renewal of the roller doors and cladding at the Les Munro Centre, and the replacement of the lower roof and installation of new shelving and automatic doors at Waitomo District Library.

New holiday parks were also developed in Te Kuiti and Marokopa to improve the quality of our visitors’ experience and to cater for the growing demands that tourist activity has on our infrastructure services and the local environment.

Further investment was made in the district’s water assets this year with a new reservoir for Piopio, repairs and renewals for the Mokau water supply dam, and completion of the Te Kuiti Water Treatment Plant Upgrade.

Council also completed an extension of the stormwater network on Te Kumi Road, continued work to obtain the resource consent for an expansion of the Waitomo District Landfill, completed upgrades to the Taupiri Street sewer main and Te Waitere Pump Station, and completed the first year of a three year footpaths improvements and renewals programme across the district.

The financial result factors in an additional $0.3 million operational revenue across a number of groups such as Community Service grant revenue being received for the development of the Te Kuiti Holiday Park and dump station, and increased revenue for building control services and landfill users. 

The report also shows that 82% of the Levels of Service targets (established through the Long-Term Plan 2018-28 for the 2018/19 year) were achieved. The Governance, Community Service, Community Development, Stormwater Drainage, Resource Management and Sewerage and the Treatment and Disposal of Sewage groups of activities all achieved 100% of their performance targets.

Inframax Construction Limited (ICL)

Inframax Construction Limited (ICL) continues to improve its operational performance and financial position with another positive result for the company. ICL has reported a net profit of $1.2 million (after tax) and a substantial increase in equity to $10.27 million for the year ended 30 June.

The progress made by ICL reflects a lot of hard work by the Board, its Management and the Staff and of course the ongoing support of the Council as shareholder to provide benefits and create value to the wider district. We would like to take this opportunity to congratulate the Board, Management and Staff on this stellar performance.

Printed copies will be made available at the WDC Office and Waitomo District Library.  If you would like to be added to our Annual Report distribution list, please email info@waitomo.govt.nz or phone 07-878-0800.

Council adopts Annual Report 2018/19