Ruapehu District Council launched an investigation in May. Photo / Zaryd Wilson
Ruapehu council has dug itself out of a $700,000 hole, and ratepayers will not be required to foot the bill.
The council launched an investigation in May following a projected overspend for the 2024/25 financial year.
In a council statement on September 6, Ruapehu District Council chief executive Clive Manley said a draft financial report for the year to June 30 showed operational spending had been “reined in” to offset any unbudgeted borrowing.
“Decisive action by council has ensured that the overspend in the community and recreational facilities area has not resulted in any extra debt for ratepayers.”
The statement said lower operating costs across several activities and higher-than-expected rates revenue were key contributors to the better-than-forecast position.
“Careful cost management, lower consultancy and maintenance expenses in some areas, and reduced interest charges have all helped deliver savings.”
Manley told the Chronicle the council did not want to reduce services because of the overspend.
“Staff worked hard and found efficiencies and savings across a range of areas, including roading maintenance, wastewater projects, consultancy services, general operating expenses, and finance costs.”
Reserves in Raetihi, Ohakune and Taumarunui all had unbudgeted expenditure for professional consultancy fees in 2024/25, coming in at $85,000, $13,000 and $31,000, respectively.
There was also unscheduled maintenance at The Taumarunui Aerodrome ($16,700) and the Sunshine Track Bridge Reinstatement ($24,700).
Two public toilets in Taumarunui were painted for $23,000.
Manley said some of the overspend was bcause of bringing works forward.
“So, expenditure this year is being reconsidered to see where it is still required.”
Ruapehu Mayor Weston Kirton said the council’s annual plan balance for 2024/25 was now ”neutral, if not in the black".
“I’m really happy the staff were able to knuckle down and identify areas they could address sooner rather than later, and not jeopardise any essential services,” he said.
In a June council statement, its executive manager of finance and strategy, Quentin Speers, said the council had responded to the overspend by enhancing project and contract management processes.
“The proposed improvements underway include better budget oversight, tighter contract and conflict of interest management, stronger project governance, increased staff training, and the improved use of technology.”
A report from Manley last month said maintenance activities postponed during the previous financial year were now being reconsidered.
“These works are essential to address accumulated wear and ensure the continued safety and usability of community assets.”
Kirton said the financial results were yet to be audited and confirmed, but that was not unusual.
“We’ve still got a little bit of work to do, but it proves independent eyes are looking at this, and it’s not just council staff coming up with figures.
“Rather than playing the blame game, we’ve dealt with this in an open transparent way.
“Those who have talked about mismanagement can rest assured that this has been rectified in this financial year.”
Manley said the next phase of the investigation would examine the role of staff and suppliers, the rationale behind key decisions, and any further actions that may be necessary.
“As key staff have been on extended leave, this aspect of the investigation has not been possible until now.
“To ensure transparency and community confidence, this phase will be overseen by an independent specialist, appointed in agreement with the Mayor and the independent chair of the risk and assurance committee.”
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.