Chief Executive Clive Manley says that the draft financial performance report for the year to 30 June 2025 shows that Council has reined in its operational spending and offset any unbudgeted borrowing.

“Decisive action by council has ensured that the overspend in the Community and Recreational Facilities area has not resulted in any extra debt for ratepayers,” said Mr Manley.

Spending under control

Lower operating costs across a number of activities and higher than expected rates revenue have been key contributors to the better than forecast position. Careful cost management, lower consultancy and maintenance expenses in some areas, and reduced interest charges have all helped deliver savings.

“These savings have offset higher costs in other areas such as water supply, community facility maintenance, and electricity, as well as higher depreciation costs due to the capitalisation of new assets,” Mr Manley said.

Revenue slightly below budget

While rates revenue and other income streams have tracked ahead of budget, overall revenue is slightly lower than forecast due to reduced government operating subsidies, particularly for roading and emergency works which can only be utilised following an event.

The lower income was partially offset by unbudgeted subsidies related to cycle trails and the Ohakune Water Treatment Plan and funding from the Mayor’s Taskforce for Jobs programme.

“This meant our revenue result is a little softer than hoped, but the combination of reduced costs and increased income has ensured we avoided the need for any additional borrowing,” said Mr Manley.

“Managing Council’s revenue and expenditure is a constantly evolving and complex picture that must balance operational spending decisions with the timing of projects and contracts and external factors such as the impact of weather events and interest rates which we have no control over,” he said.

Looking ahead

Mr Manley noted that the results remain subject to audit before the final year-end position is confirmed which will include a number of non-cash book adjustments such as potential asset related revaluations and disposals/write offs that are currently under review.

“Overall, this financial position is a positive outcome for Council and our community.

It shows that we can respond quickly to challenges, strengthen our systems, and make sure we live within our means.

That discipline will be even more important as government reforms and potential rates capping require councils like ours to do more with limited budgets.”

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