Report for 2004/05
The City Council’s Annual Report shows the city is in a strong financial position.
The report, which was adopted by Councillors last month, details the Council’s activities and achievements for the year to 30 June 2005.
"Our operating surplus before vested asset contributions for the year was $29.6m ahead of the budget, at $45.9m," says Roy Baker, the Council’s Corporate Services General Manager.
This increase was as a result of: interest ($6.5m) due to delayed capital spending and higher interest rates; $6.2m of capital contributions, consent fees and other related income due to a higher-than-anticipated subdivision activity; depreciation of $1.4m less than budgeted due to delayed capital spending and a decrease of $1.4m in expenditure provision for the closed landfill at Burwood.
"It’s important to appreciate that much of the extra surplus relates to specific activities and cannot be applied to general rating activity," Mr Baker says. "The ‘cash’ surplus that is available is about $14m, which will be applied to debt repayment and general reserves that will benefit all ratepayers.
"An increase in equity of more than $64m to a new high of $4.2 billion highlights the strength of the Council’s balance sheet. Council delivered $105m of new capital expenditure during the year.
"This was below what was planned and reflects the complex nature of this part of the business. The capital programme tries to manage the issues of affordability (rates), our ability to deliver projects to the construction sector and its ability to delivery," says Mr Baker.
Major projects undertaken last year included the new Parklands and Upper Riccarton libraries ($2.8m), the ocean outfall consent and investigation ($1.6m), strategic waterways and wetlands land purchases ($2.1m) and the Belfast pressure main ($1.2m). Other significant items included additional library book purchases ($3.6m), road surfacing and sealing, and footpath resurfacing ($8.1m), and improvements to the city’s sewage treatment plant ($1.6m).
- The full Annual Report can be viewed at Council service centres and libraries later this month and online at www.ccc.govt.nz/AnnualReport/ A summary of the Annual Report will be available later this month at the same locations.
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