Challenging year leads to $2.6m deficit for Hurunui council
By David Hill, Local Democracy Reporter
Hurunui’s council has posted a $2.6 million deficit, amid uncertainty created by Government reform and economic pressure.
Hurunui mayor Marie Black said the Three Waters, Resource Management Act and local government reforms, high interest rates and the cost of living all placed a heavy burden on the council over the past year.
The council adopted its 2022-23 annual report at a council meeting on Tuesday.
The annual report produced a $2.6 million operating deficit on the back of higher than expected roading costs and a significant revaluation of roading assets.
Chief financial officer Jason Beck said there was a significant increase in roading costs due to flooding over the last 18 months, which blew out the operating budget by $3.6m.
A revaluation in the council’s roading assets also led to ‘‘a greater level of depreciation’’, which was not budgeted for, Beck said.
The council’s total expenditure was $61m - $9.1m greater than budget.
Revenue for the year was $58.4m, which was $4.7m ahead of budget, thanks in part to $2.1m received for the Mayor’s Taskforce for Jobs programme and funding to assist with Three Waters reform.
The council also revalued its land and buildings, which increased in value by $22.1m, while the roading assets increased in value by $4.2m.
Black said the council tackled some major capital projects during the year, including upgrading its Three Waters network, in anticipation of government reform.
She said this project, which began in 2015, was funded this year by the Government’s Covid-19 stimulus funding and through the use of debt.
More work is planned over the next 12 months, which would be debt-funded and push the council close to its self-imposed debt ceiling.
The council’s debt was $47.5m as at June 30, lower than the budgeted debt of $54m, due to timing of projects.
■ Public interest journalism funded through New Zealand on Air.
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