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Home / Hawkes Bay Today

Napier City Council's $2 million deficit: First time in 31 year history

Hawkes Bay Today
2 Nov, 2020 03:28 AM2 mins to read

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Napier Mayor Kirsten Wise said keeping the city ticking throughout alert level changes has been demanding. Photo / File

Napier Mayor Kirsten Wise said keeping the city ticking throughout alert level changes has been demanding. Photo / File

Napier City Council says it's in a deficit for the first time in its 31-year history due to the Covid-19 pandemic.

The council has an overall year end deficit of $2 million, with the shortfall being funded by loans.

The Annual Report for 2019/2020 which was adopted on Monday highlights the pandemic as being the most significant contributing factor towards this.

At the meeting Chief Financial Officer Caroline Thomson said total revenue of $117 million was below budget by 8.5m and total expenditure of $119 million was above budget by $7m resulting in the overall deficit.

Tourism facilities were either closed or continued to be affected as the country dropped back down the alert levels.

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Mayor Kirsten Wise said there has been both "great successes and also great challenges over the past year."

"But as our Report shows, we have stuck to our commitments as best we can, including continuing to make water issues our top priority.

"Keeping our city ticking along throughout the National State of Emergency and changes in alert levels has been demanding.

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"We are well aware of current impacts and preparing for the unknown, so our next Long Term Plan, covering the 10 years from 2021, is being developed with this in mind."

Acting Chief Executive Keith Marshall, who joined NCC during lockdown, said balancing community expectations and priorities while continuing to balance the books is always a hard task, made more so by this year's unexpected events.

Initiatives set up as a result of the pandemic include: a Rapid Response Fund to help non-profit social service and community organisations support the response, a Recovery Projects Fund, rates relief packages, and We Are Team Napier – Kia kotahi tātau o Ahuriri nei.

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