Rotorua Lakes Council's finances are on solid ground, partly due to income from ratepayers.
The council - and its three council-controlled organisations - have reported higher than expected incomes for the first quarter of 2021.
The information comes as the Operations and Monitoring Committee met yesterday.
The council financial performance update related to the 10 months ending April 30, 2021.
A report prepared for the meeting by council finance business partner Michelle Overbeek said the council's overall operating performance was tracking better than its budget by $183,000.
Council deputy chief executive organisational enablement - formerly the chief financial officer - Thomas Colle said the council was well over $1 million ahead of its budgeted target.
Colle's presentation said the council's income was driven by the timing of rates, penalties and water usage.
Consenting fees, Government subsidies, and legacy NZTA funding were also a factor.
Colle said it was "pleasing" the council was "continuing to track well ahead".
When councillor Reynold Macpherson asked what debt reduction tactics were being considered, Colle said the council's strategy was to leverage debt to invest in the community.
"There is no strategy to reduce [the] council's debt at the moment," Colle said.
Rotorua Airport chief executive Mark Gibb reported a year-to-date revenue of just over $3.5m against a budget of $3.1m as of March 31.
The airport is one of the three council-controlled organisations, along with InfraCore and Rotorua Economic Development, also known as Destination Rotorua.
Lowered expenses and higher than expected passenger numbers helped the airport reach surplus, Gibb said.
Councillor Mercia Yates asked if flight availability would increase.
Gibb said the airport had "positive dialogue" with Air New Zealand and was looking to reinstate the Christchurch and Auckland red-eyes.
Gibb didn't rule out discussions with other airlines.
"All bets are off to a degree," he said.
Rotorua Economic Development reported a net profit of just over $565,000 against a budget of nearly $500,000 for the month ended March 31.
Councillor Fisher Wang asked what marketing was being done to encourage Australian tourists to visit Rotorua.
Rotorua Economic Development chief executive Andrew Wilson said the flow of tourism from Australia was expected to be a "slow burn".
"Bookings are starting to pick up later in the year.
"More likely over the summer period we will see more volume."
Infracore's financial report revealed it running a $720,000 surplus against a budgeted deficit of $122,000.
The report was prepared by Colle but was presented by chief executive Matthew Scott.
Councillor Tania Tapsell said she was pleased to see InfraCore in the strongest financial position it has ever been in.