Financial statements – a great year, and a surplus

Prudent financial management by the Wellington City Council has been one of the crucial factors in a “spectacular” year for the Capital City.

The Council has reported a net surplus of $4.417 million for the year ended 30 June 2004 compared with a budgeted deficit of $8.818 million. City Councillors this week adopted the Council’s financial statements – which h ave received an unqualified audit opinion from Audit New Zealand.

Mayor Kerry Prendergast says the favourable result was achieved in a year when more than $80 million of capital expenditure was invested in the city. “This has been a spectacular year – a great year – for the city and the Council. Investment and collaborative partnerships have led to great successes like the World Premiere of The Lord of the Rings: The Return of the King and the completion and official opening of the Oriental Bay redevelopment.

“Both events typified the Council’s Creative Wellington – Innovation Capital vision, which became a guiding philosophy for Council work and investment in 2003/04.”

City Council Chief Financial Officer Andrew McKenzie added that the high-profile events and projects were underpinned by infrastructure investment to keep the city in “prime condition” for many years ahead. This includes ongoing work on the stormwater system upgrade in the Willis-Victoria-Frank Kitts Park area, and several new quake-proof reservoirs around the city.

Other significant projects during the year included the completion of the Lambton Interchange and upgrades to the library and housing portfolios.

The $4.417 million net surplus was attributed to several sources of unbudgeted revenue including gains on the sale of various assets including carparking buildings ($10.9 million), unbudgeted revenue from vested assets ($11.6 million), bequest and reserve fund income ($0.6 million) and surpluses from joint ventures and the Wellington Waterfront Project ($1.1 million).

These revenues have been partially offset by the lack of a $4 million dividend from Wellington International Airport - which had been included in the budget, and additional unbudgeted expenditure – including $909,000 associated with the February storm clean-up.

The 2003/04 Annual Report is scheduled to be published by the end of September.

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