A spurt of development in the Waitaki district is a major contributor to a big surplus recorded by the Waitaki District Council for the 2007-08 financial year.
Yesterday, the council released its audited annual report, which showed a $12.35 million after-tax surplus for it and its companies, compared with $4.58 million in the 2006-07 financial year.
While ratepayers may greet that with glee, they have not been overcharged in the $21.5 million in rates they paid in the last financial year.
A big contributor to the surplus was almost $9 million in assets transferred to council ownership during the year - mainly roads, kerbing, channeling, footpaths and stormwater systems in new subdivisions.
With only $228,000 in assets transferred the previous financial year, the big increase was a reflection of more development in the district, corporate services manager Stephen Halliwell said yesterday in an interview.
"About six or seven years ago, development was slow and almost stagnant. We are catching up on that now, along with new development," he said.
"That resulted in a lot more subdivisions throughout the district which were completed last (2007-08) financial year."
The surplus also included $2.3 million in development Resource Management Act contributions which go to reserves.
Some work for which the council collected rates but did not complete or carry out in 2007-08, affected the surplus.
Mr Halliwell said that, now the annual report had been released, a report would go to the council outlining the true surplus from the past financial year.
The council would then decide what to do with it.
Audit NZ was at the council meeting yesterday to examine and approve the annual report.
Strategy group manager Richard Mabon said the annual report was an important document in terms of the council's financial and service performance accountability to its community.
The council administers almost $630 million in assets on behalf of the community, an increase of about $35 million on the previous year.
A big part of the increase came from the $12 million upgrade of the Oamaru water supply, $9.7 million restoration and redevelopment of the opera house and $4 million in roading development.
Total income for the council as a group, which includes its companies such as Whitestone Contracting and Waitaki Health Services, in 2007-08 totalled $68.91 million, with $21.583 million coming from rates.
The previous year total income was $56.583 million with $20.096 million from rates.
Expenditure in 2007-08 was $56.573 million, compared with $51.574 million the previous financial year.
The council paid tax of $12,254, compared with $4586 in 2006-07.
