A old butcher shop was demolished to make way for Korimako Lane in Hawera.
South Taranaki District Council has recorded an $8m surplus for the 2017/18 financial year but its debt has also increased by $4.43m over the same period.
The council's surplus far exceeded a budgeted surplus of $1.6m which council chief executive Waid Crockett said was because its Long Term Investment Fund
(LTIF) returned $11.99m which was $2.6m more than budgeted.
The fund is now at $143.21m - up from $137.43m in 2016/17.
However, debt also increased from $123.75m to $128.18m over the same period.
The council draws $5.8m a year from the LTIF which provides $3.87m to subsidise general rates and a further $1.93m to service loans for specific community projects.
"In this way the LITF has returned almost $100m back to the South Taranaki Community since it was started in 1997," Crockett said.
"All revenue over and above the annual drawdown of $5.8m is returned to the fund to build it up for those years when it doesn't perform so well."
The council's annual report which was adopted recently shows progress made with two of council's key priorities; the Hāwera Town Centre Strategy and the District Pathways Programme.
"The second Hāwera Town Centre project started with the demolition of the old butcher shop in High St to make way for Korimako Lane; a new laneway connection to the Napier Street carpark," Crockett said.
"Good progress was also made on planning the new Centre for Heritage, Arts, Library, Culture and Information."
