The Gore District Council has recorded an unexpected deficit of $1.6 million in the 2011-12 financial year after it was discovered its library books were overvalued by nearly $1 million.
In its 2011-12 annual report, adopted this week, the council reported a deficit of $1.633 million for the year ended June 30, about $1.5 million more than the forecast $39,000 deficit.
In the report, Gore Mayor Tracy Hicks said the deficit had no impact on cash or rating levels.
Council corporate services general manager Russell Duthie said the books' value had been in the system for 20 years "and no-one really questioned it".
Other factors contributing to the deficit were: $244,000 funded from loans for maintenance on council properties and studies in water, wastewater and stormwater; $144,000 to clean the Pleura dam, which supplies Mataura, funded from operational reserves; and $168,000 for depreciation of infrastructure assets.
Mr Duthie said the council showed a $3000 surplus on activities funded from rates, subsidies and user charges.
"We actually budgeted and rated as accurately as we could - and spent $3000 less than what we rated for."
During the year to June 30, Mr Hicks was paid $64,534 and councillors between $2880 and $19,610.
Chief executive Stephen Parry received a salary of $217,797, up from $211,218 in 2010.
