FOR IMMEDIATE RELEASE
Following an Extraordinary meeting, Council has adopted the Annual Report for the 2022/2023 year. Council has reported an operating deficit of $3.5 million before tax, which is $7.9 million below the budget set out in the Annual Plan 2022/2023.
“The major variance from the Annual Plan is in the value of grants and subsidies received, which is $3.4 million less than what Council budgeted to receive. This is mainly due to timing differences and approximately $1.5 million of grant funding will be received in the 2023/2024 year which should have been received in the 2022/2023 financial year” advises Lesley Crichton, Group Manager Corporate Services and Risk and Assurance. “Grants budgets are based on the expectation of work being completed in order to receive grants that have been approved. In this financial year, we expected to receive just over $11 million in grants but instead we received just under $8 million based on the work that was done.”
“There was also a variance of $6.5 million in other expenses. The main reasons were unbudgeted $2.8 million loss on disposal of assets and being in a high inflationary environment that could not have been forecast in our budgets. Other contributing factors were unbudgeted contractor costs arising from staff shortages and high demand for services.”
Throughout the 2022/2023-year, Council has continued the programme of significant investment in the community to provide good quality waters infrastructure, council facilities, community projects, and carried on developing community cultural and recreational assets.
“This year’s Annual Report really reflects the environment that Councils are working in at this time,” says Westland District Mayor, Helen Lash. “We appreciate that staff are working very hard to provide quality services in the timeliest way possible, but in some areas staff shortages are acute; not just in Westland but around the country. We can also see the effects of inflation and costs increasing through the financial reports. However, Council feels very positive about what has been achieved this year, particularly in the capital programme and engagement on major projects like the Hokitika Waste Water Treatment Plant and the Cass Square playground.”
The Annual Report is available here.
ENDS
Media enquiries to:
Emma Rae, Strategy and Communications Advisor