Rotorua's airport has reported a nearly $189,000 surplus in the year-to-date, while Infracore and the Lakes Council lag with deficits.

Destination Rotorua also reported a modest surplus of $2312.

The reports came at a meeting of the Rotorua Lakes Council's operations and monitoring committee on Thursday, where the committee was presented with half-yearly financial updates on council-controlled organisations as well as the council itself.

The council reported a deficit of $5,603,000, $859,000 over its budgeted deficit for the year-to-date of $4,734,000.


Chief financial officer Thomas Colle said strong revenues had helped mitigate expense pressures.

"While our overall revenues are better than budget, our expenses are tracking ahead as a result of, predominantly, electricity, staffing pressures and compliance areas of the [Rotoiti/Rotoma] sewerage activity.

Rotorua Lakes Council chief financial officer Thomas Colle. Photo / File
Rotorua Lakes Council chief financial officer Thomas Colle. Photo / File

"Overall we are within 2 per cent of budget but we've had some challenges that we're working on."

The council had collected just over $58 million in rates in the year-to-date.

The report said challenges were being "monitored and managed closely along with tight oversight on expenditure".

"Through continued financial prudence we forecast to end the financial year on or close to budget."

After the meeting, a council spokeswoman told the Rotorua Daily Post while a deficit was reported in the meeting, it wasn't "the full picture".

"The report in the agenda does not include the additional $7.8 million of revenue council has received from subsidies (e.g. from NZTA for roading) so it's additional information to the report and when all is combined ... the overall result is a $2.2 million surplus.


"This is information that will be included in the financial reports in future."

Subsidies as at December were reported at $2,867,000 in the report.

Infracore, which maintains and constructs public infrastructure for the city, reported a deficit of $272,000, having a budgeted deficit of $209,000.

Infracore's report said at the same time last year, its deficit was $620,000.

Infracore chief executive Matthew Scott. Felix Desmarais / LDR
Infracore chief executive Matthew Scott. Felix Desmarais / LDR

"Management is ensuring that measures are in place to meet budget for the year, and with the additional revenue from the capital works awarded, believe that this can be achieved."

The January 2020 financial results had become available by the time of the report that "showed the measures in place by management have been successful for the month".


January results reported a deficit of $281,000 compared to a budget of $250,000, narrowing the negative difference from $63,000 in December to $31,000 in January.

Infracore chief executive Matthew Scott said the organisation was in a "much improved position".

Rotorua Airport reported a surplus of $188,963, and reported 133,526 passenger movements against a budget of 127,557.

Destination Rotorua chief executive Michelle Templer.Photo / File
Destination Rotorua chief executive Michelle Templer.Photo / File

Its assets were worth just under $70 million with liabilities of just over $4.3 million and a term loan of nearly $14.5 million giving it a net equity of just over $51 million.

Destination Rotorua chief executive officer Michelle Templer said in the meeting all key performance measurements were on track, but said there was a possibility "with the changing operational environment" that would no longer be the case at the end of the third quarter.