The Westland District Council looks set to finish the financial year almost $1 million in the red - a complete reversal of the $1.3 million surplus it had projected.
Draft end of year results to June 30 were tabled at the finance, audit and risk committee meeting last Thursday and received in silence.
A deficit of $866,952 was forecast in the report.
However, finance manager Dayle McMillan said more information had come to light only the day before in regard to a Westroads subvention payment that would increase the projected deficit by $130,000 to total $996,953 for the year.
The previous council had previously forecast a surplus of $1.3 million for the year.
Unbudgeted spending to the tune of $1 million, a $415,000 increase in depreciation and reduced income of almost $800,000 have contributed to the variance of $2.2 million.
Despite the large deficit, councillors were mute on the financials, which Mr McMillan noted were interim and were subject to change.
Mayor Bruce Smith questioned the forecast overall debt position of $16.7 million, which was $2.4 million less than the $19.1 million projected.
Mr McMillan said that was mainly due to timing with a number of projects such as the Lake Kaniere Road sealing being carried over into the new financial year.
The closure of the Hokitika Museum caused a $47,000 decrease in income for the year and a New Zealand Transport Agency subsidy was $744,000 less than budgeted, in part due to the weather.
Expenditure included in the unbudgeted operating costs were: damaged culvert pipes due to overweight vehicles ($264,000), remedial works at the Franz Josef Glacier oxidation ponds ($123,000), wastewater 'proceedings' at the Franz Alpine Retreat subdivision ($106,000), repairs to the Hokitika sewerage outfall pipe ($43,000), an unforeseen pump breakdown in Fitzherbert Street ($25,000) and the earthquake assessment for the Centennial Swimming Pool ($11,000).
Unbudgeted spending later approved by the council included the Hokitika Spit erosion control ($192,000), pH correction at the Blue Spur water treatment plant ($50,000) and management of the Carnegie Building ($13,000), which reopened in March.
The fresh year forecast has budgeted for a $2.5 million surplus at June 30 next year.
The final audited financials will be released with the annual report by October 31.
- By Janna Sherman of the Hokitika Guardian
