The Tararua District Council is in a positive financial position, chief financial officer Raj Suppiah says.
"We are tracking well in the past six months with a favourable position against our bottom line," Mr Suppiah reported to councillors at their last meeting.
Mr Suppiah reported council's interest expenses are lower because of lower-than-budgeted financing costs and external debt also lower than budgeted.
The effective interest rate is 4.53 per cent, compared to the budgeted rate of 5.3 per cent and while council's investment interest returns are also lower because of the Reserve Bank dropping the official cash rate, by putting more funds into short-term deposits, council has been able to achieve favourable interest outcomes, up $86,000 on what was budgeted.
The council is also reducing debt with proceeds received from the liquidation of Infracon and the expected proceeds from the sale of Hovding Court, pensioner housing.
Also a significant amount of rates and penalties have also been recovered with a concentrated approach.
But district Mayor Roly Ellis said it's important councillors know what rates are owed.
"We've had some horrors over the years," Mr Ellis said.