Rotorua Daily Post
  • Rotorua Daily Post home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Sport
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
    • All Lifestyle
    • Residential property listings
  • Property
    • All Property
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Rural
  • Sport

Locations

  • Tauranga
  • Te Puke
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Taupō & Tūrangi

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales

Weather

  • Rotorua
  • Tauranga
  • Whakatāne
  • Tokoroa
  • Taupō

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Rotorua Daily Post

Council's financial position revealed

Rotorua Daily Post
18 Dec, 2013 11:29 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Budget shortfalls have forced the Rotorua District Council to closely examine its financil position.

Budget shortfalls have forced the Rotorua District Council to closely examine its financil position.

A new financial strategy is being proposed to move Rotorua District Council to a stronger financial position.

A recent review of council finances has concluded that while debt is within acceptable limits set by the Local Government Funding Agency (LGFA), it is higher than it should be and the council needs to act decisively to turn the situation around.

Current debt is at 1.47 times revenue, within the LGFA-imposed limit of 1.75 times.
A report by the council's chief financial officer Dave Foster was tabled at a council meeting today, providing an update on the council's financial position and outlining a proposed new strategy to ensure long-term sustainable financial management and delivery of services.

Councillors were asked to consider adopting the proposed strategy as part of the upcoming Annual Plan process.

"The council's financial position is not as good as previously portrayed, but neither is it disastrous. We have a clear view of what we need to do to emerge with a more efficient and effective organisation," Rotorua District Council chief executive Geoff Williams said.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"We've caught things in time to turn the situation around and we're confident we can achieve this over a five-year period."

Mr Williams said the proposed new financial strategy emphasises robust forecasting and simplified reporting to ensure greater understanding by both councillors and the community of the financial impact of council decisions.

A previous lack of transparency and clarity due to complex reporting meant there was no clear view of the council's overall financial position.

Advertisement
Advertise with NZME.

He said the organisation had driven debt higher and quicker than it should have and costs had risen faster than revenue, creating an imbalance between income and spending.

"A more strategic approach to financial planning will ensure rates rises, debt levels and capital works will be at sustainable levels and in balance," Mr Williams said.

"We need to re-set spending, particularly on growth, and it means we will have to look at using rates increases over the next few years to start seriously addressing the level of debt.

"We think we'll be looking at increases of between 2.5 and 3 per cent a year for at least the next three years.

Discover more

$3m budget shortfall looms

19 Dec 06:52 PM

"However, this is still lower than what's signalled in the Long-term Plan which was finalised in 2012."

He said the council would also have to reduce capital expenditure, cutting this year's budget from $31 million to about $20 million.

"The Long-Term Plan sets capital spending at $51 million. This is not sustainable so we're already making moves to remedy this."

Mr Williams said budgets for this year had been over-optimistic by about $3 million, or approximately 3 per cent of total budget, so the council would be taking immediate action to live within its means.

This will affect overall spending and has already seen Council's in-house engineering design unit, Hydrus Engineering Consultants, restructured.

Rotorua Mayor Steve Chadwick said she was confident a new financial strategy would get the council on track and ready to deliver on its Rotorua 2030 vision.

Advertisement
Advertise with NZME.

"Our vision includes ensuring we have sustainable infrastructure and affordable, effective council services and these measures support those aims.
"The current financial situation has been identified and will be rectified. We now need to focus on getting things right for this district's future," Mrs Chadwick said.

"We've been encouraged by the positive feedback during consultation on our Rotorua 2030 vision and we look forward to the public's ongoing support so we can keep the momentum going and deliver on the direction set with our community."

Save

    Share this article

Latest from Rotorua Daily Post

Rotorua Daily Post

Pair deny charges over death of Paige Johnson in alleged hit-and-run

11 Jul 12:26 AM
Rotorua Daily Post

Home-schooled students ride 755km to Parliament for equal sports access

10 Jul 11:07 PM
Rotorua Daily Post

Heavy rain warning issued for Bay of Plenty, up to 140mm expected

10 Jul 10:57 PM

From early mornings to easy living

sponsored
Advertisement
Advertise with NZME.

Latest from Rotorua Daily Post

Pair deny charges over death of Paige Johnson in alleged hit-and-run

Pair deny charges over death of Paige Johnson in alleged hit-and-run

11 Jul 12:26 AM

One man is charged with manslaughter and the other with being an accessory after the fact.

Home-schooled students ride 755km to Parliament for equal sports access

Home-schooled students ride 755km to Parliament for equal sports access

10 Jul 11:07 PM
Heavy rain warning issued for Bay of Plenty, up to 140mm expected

Heavy rain warning issued for Bay of Plenty, up to 140mm expected

10 Jul 10:57 PM
Light truck rolls on SH36, one seriously injured

Light truck rolls on SH36, one seriously injured

10 Jul 10:45 PM
Solar bat monitors uncover secrets of Auckland’s night sky
sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Rotorua Daily Post e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Rotorua Daily Post
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Rotorua Daily Post
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP