Council’s careful management nets $3.7 million surplus
A $2.6 million budgeted deficit has become a $3.7 million surplus, thanks to Council’s careful approach to reducing debt and managing its operating costs.
The turnaround was achieved through a deliberate programme of reprioritising activities while continuing to deliver essential services and activities as planned. This reduced the amount of borrowing required, which kept interest payments down.
Sale of Council’s Western Link Road properties to New Zealand Transport Agency delivered an unbudgeted $7.2 million windfall which was used to repay maturing public debt, reducing the need to borrow more money.
The unaudited report was presented to Council’s Corporate Business Committee (CBC) today.
CBC Chair Councillor Gavin Welsh says this is a great result for the Kāpiti community.
“We finished the 2013/14 financial year in a very strong position, with our public debt $19 million below budget.”
Councillor Welsh says Council has been signalling an aggressive debt reduction programme for some time and the end of year results show the success of this approach.
“We’ve demonstrated that, by taking a prudent approach to financial matters, Council can deliver the things the community wants – like effective water and wastewater management, better roads, walkways and cycleways, parks and sports grounds, aquatic facilities and libraries – while substantially reducing the cost of doing that work.
“The flow on effect is that everyone wins. We can continue to enjoy our great quality of life, but not at the expense of mounting debt that is passed on to future ratepayers and residents.”