The Central Otago District Council (CODC) has recorded a $10.7million surplus for the 2016-17 financial year.
But the money would be needed for significant capital projects, the CODC was told.
The figure was in the council's 2016-17 annual report, which it adopted earlier this week.
The surplus reflected the increased activity in the district and was significantly up on the budgeted surplus of $765,000, the report said.
The biggest drivers of the increased surplus were increased revenues in development and financial contributions ($1.7million), vested assets ($6.3million) and regulatory fees ($819,000), all of which reflected increased development activity, councillors heard.
In addition, increased revenue of $1.2million was recorded as profit on the sale of assets relating to sale of land in Cromwell for development.
Operating expenditure was under budget by $1.2million, most of which was attributable to lower-than-expected depre-ciation costs ($1.1million).
Cash investment at the end of the year stands at $22.2million, with no external debt.
``This is a healthy position for council to be in, however with capital expenditure for the Lake Dunstan Water Supply and Cromwell Sewerage upgrade due to ramp up, this positive cash position, as planned, will not last.''
The annual report also noted that infrastructure assets were usually revalued on a yearly basis.
``Due to inconsistencies between the asset movements and the resulting amount of changes in the revaluation reserves, it was decided not to process the revaluations this year. The revaluations' weighted average movement in the value of the assets of 0.02% was not considered material to the value of the asset base.''
``The operating surplus was stronger than anticipated, however, much of this positive surplus was either non-cash ($6.3million) due to vested assets or cash that will go toward paying for the growth portion of assets built or to be built to cater for additional (growth) capacity needed to meet the needs of Central Otago's growing district. The balance sheet remains in a positive position although this will change as council makes significant investments in infrastructure.''
