Rotorua mayor Steve Chadwick. Photo / Andrew Warner
Rotorua mayor Steve Chadwick. Photo / Andrew Warner
Rotorua Lakes Council finished the 2021 financial year with a draft $10.3 million surplus – about $27 million below target.
The council's annual financial result was presented to its Operations and Monitoring Committee meeting on Thursday, with Rotorua mayor Steve Chadwick saying it reflected "very sound financial management".
A reportfor the meeting stated the overall draft financial performance for the 2021/2022 financial year was "satisfactory, considering the global economic environment" and financial pressures and risks on the council and country more widely.
The result will now face auditors – the usual process – but it is expected the new council will approve the final report in December due to Audit NZ backlogs.
In the meeting, council organisational enablement deputy chief executive Thomas Colle said 2021 had been "a difficult year".
No debt had been used to fund operating expenses he said, and the result was within two per cent of the budgeted almost $37.4 m surplus.
Colle said the organisation had come under "immense pressure" due to Covid-19 lockdowns and the impacts of inflation, but there had been "minimal to no" impacts on the council's levels of service.
Rotorua Lakes Council organisational enablement deputy chief executive Thomas Colle. Photo / Andrew Warner
With "the most ambitious capital works programme for quite some time", the council had spent two thirds of its budgeted capital works expenditure for the year, and had a "high completion" of renewal work for core infrastructure.
Colle said likely the biggest challenge the organisation had faced and continued to face was staff attraction and retention.
He said that was "no different" to organisations and businesses around the country but "if anything is getting a little bit worse at the moment".
Revenue through the year had also been particularly impacted by reduced income from fees and charges, especially from events and venues, he said.
In the meeting, Chadwick said the report's comment of a "satisfactory" result was "quite understated".
"We as elected members wait nervously to see what the real picture is.
"To have a surplus after [the] year we've been through, even though it's a reduced surplus from what you budgeted ... is very very sound financial management.
"You and your team and the entire executive [are] to be congratulated for that. It's been a horrible year and I think you've done exceptionally well."
She said now international visitors were returning to Rotorua, the district had a "great sense of pride … about the level of investment that tells the story of our place".
"I'm so glad that we didn't put a hold on those major projects as well."
Regarding the council's $1 m grant for the QE Health development – which had been regularly cited in monthly financial updates as putting pressure on the organisation - she said it was an investment that would have benefits yet to be realised.
"It's a national and international centre … [it's] going to yield returns for us, and for wellbeing.
"I'm really proud as an outgoing mayor that, with the support of the team you've pulled things in very tightly. I know – I haven't got my baby projects through, and I won't mention what they were.
"They didn't rate on the scale of good investment into our wider community. I think we've kept the right things going at the right pace … for a new council to enjoy."
Rotorua district councillor Raj Kumar. Photo / Andrew Warner
Councillor Raj Kumar said considering the financial pressures and economic environment he thought council officers had "done a wonderful job" and he hoped the council would be able to cope well with any future cost pressures.
Councillor Mercia Yates said she was "absolutely impressed with the draft result we've achieved".
She was sure the council's books would pass the audit with "flying colours".
