The Queenstown Lakes District Council has recorded a $137,000 operating deficit for the year ended August 31.
A report to council's finance committee meeting by accounting manager Ian Stewart showed the council had $12.1 million operating revenue and costs of $12.3 million in the year to August 31.
Councillors will be presented with the council's financial statement at a finance committee meeting today.
All council-controlled organisations are also presenting their annual reports for the 2008-09 year at the meeting.
Queenstown Airport Corporation's annual report shows a surplus of $1.6 million, up from $1.1 million in 2008, despite 2% fewer passengers.
A 4% drop in domestic passengers was offset by a nearly 20% increase in international travellers.
Chief executive Steve Sanderson said the company was forecasting significant overall growth on transtasman routes, particularly from the important Sydney market for the coming year.
"Despite the global economic downturn within the financial year under review, revenues rose by 5.2% to $11.31 million," Mr Sanderson said.
"This was driven by an increase in international passenger numbers and commercial operations," he said.
Council regulator Lakes Environmental has a deficit of $29,792, compared with a deficit of $59,249 for the previous year.
Building consents issued for new dwellings were down 25% on the previous year.
Chief executive Hamish Dobbie said Queenstown Lakes District had not been immune to the recession.
"Declines felt across the tourism and construction industries have negatively impacted on both building and resource consent application volumes.
"Adverse trading conditions have also seen an increase in the number of slow payers and debt default," he said.
Lakes Leisure is reporting a surplus of $252,000.
Chief executive Fiona McKissock said it was an extremely satisfactory result for the first full year of operating a new company.
Revenue from the aquatic centre was higher than anticipated, she said.
"We experienced less positive results with the loss of hydro slide income due to its closure.
"Whilst there were positives and negatives in revenues, costs were carefully managed to ensure that operations were within the operating budget set down at the start of the company," she said.
Lakes Engineering had a surplus of $55,374.
It was disestablished on June 30 and its assets and liabilities were transferred to the council.
