South Wairarapa councillors unanimously adopted the annual report on Wednesday, complete with a clean audit opinion.
It was the only Wairarapa council to have adopted its annual report before the election.
Council chief executive Janice Smith said the biggest focuses for the 2024-25 year had been essential services and preparation for future change.
“This year’s financial results closely matched what we set out in the budget, reflecting honest, transparent reporting and careful budget planning,” she said.
“That financial stability meant we could keep investing in the things that matter - like safer roads, and improved community spaces that bring people together.
“However, our non-financial performance in water activities fell short of expectations, with several key performance indicators missed.”
She said this was largely due to historically low capital investment in renewals.
“We acknowledge this gap and are actively working to improve water infrastructure and outcomes in the period leading up to transition [to a joint water services entity].”
The council’s operating surplus for the year was $1.8 million below expectations, primarily due to operating expenses exceeding budget by $1.7 million.
Total revenue remained broadly on target, however, developer contributions were $0.7 million below budget, reflecting a general downturn in development activity and a slowdown in consenting.
This was further impacted by developers delaying projects in anticipation of the adoption of the new combined district plan.
At Wednesday’s meeting, councillor Pip Maynard asked whether this was also the result of the moratorium on wastewater connections in Greytown and Martinborough due to the treatment plants being at capacity.
Chief financial officer Charly Clarke said there was “absolutely a combination of factors there”.
No new wastewater connections had been allowed in Martinborough since mid-2023, and none in Greytown since mid-2024 Councillor Alistair Plimmer said some local developers had said they had the “worst year on record since they began business” because of the uncertainty of being able to connect.
“For the four of you who are hopefully going to be sitting around the table again, that’s something that really needs to be front of mind because it is an absolute hit on our economy in South Wairarapa,” he told fellow councillors standing for re-election.
Other council revenue was higher than the budget by $1.1 million mainly due improved recovery of costs from other councils and central government, mostly related to joint reform projects.
The annual report highlighted several key successes including the progression of a 10-year consent for Featherston’s wastewater treatment plant, opening the new John Gray Pavilion at Soldiers Memorial Park in Greytown, upgrading the Joy Cowley Playground in Featherston, and desludging the Martinborough Wastewater Treatment Plant.
The finalised 2024-25 annual report would be available on the council’s website within a month.
-LDR is local body journalism co-funded by RNZ and NZ On Air

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