Napier City Council finances benefit from Parklands section sales

Sections in Parklands, Napier, have been a boon for the council. Photo/File

The Napier City Council has announced a $13.9 million surplus for the last financial year, most of which came from Parklands section sales.

The council made $9.4 million from "higher than anticipated" sales of sections in the Parklands subdivision - 54 were sold, well over the target of 40.

The figure was revealed in the annual report, which the council adopted at an extraordinary council meeting yesterday.

In the 2015-16 year, $7.7 million in council revenue came from the sale of 51 Parklands sections. Sections in Parklands have been in high demand for several years, with people queuing up to buy plots of land released in 2015.

On that occasion, the council made nearly $5 million on section sales in about an hour and a half.

Napier City Council chief executive Wayne Jack said the year's result was not just about the Parklands sections.

"The financial result is very pleasing and is the result of strong financial management by the team combined with other factors such as Parklands sales."

Mayor Bill Dalton also praised the annual financial results.

"We have achieved a great result, based on a plan to reinvigorate Napier, while delivering our services in a cost effective and efficient manner.

"Our financial result has been boosted by an increase in non-rates income which was largely driven from the number of sales of Parklands sections, a council-led development."

Property prices have risen 28 per cent in Napier over the last year, according to REINZ figures, with supply continuing to be low.

"The economy locally is going from strength to strength and we are working hard on facilitating that growth," Mr Dalton said.

"Another busy year lies ahead for our council. We know that ratepayers expect us to keep the finances in order and that's what we are delivering."

Mr Jack acknowledged that the wider economy had an effect on the annual surplus.

"The end-of-financial-year result is always going to be dependent on a number of factors such as scale of capital projects as well as how the economy is performing.

"Tourism growth is forecast to be up 8 per cent to September 2017, and this has a positive flow on impact into our activities such as our National Aquarium of New Zealand, and our recently upgraded Conference Centre."

Just 49 per cent of the council's total revenue in 2016-17 came from rates, the annual report revealed.