Waipa debt drops
21 April 2015Waipa District Council's latest financial forecast sees projected debt drop by $11 million.
When the council released its draft 10-Year Plan in March, Waipa's debt at the end of June was expected to be around $24 million, based on the September 2014 forecast.
That forecast has now been revised and indicates debt at the end of June will be closer to $13 million.
Chief financial officer Ken Morris said the drop in projected debt was caused by a number of factors combined with timing issues.
A higher-than-expected opening cash balance has been boosted by $4.8 million due to delays to planned capital and operating work, he said. Timing issues around proposed projects like the Te Awamutu library and Hicks Road treatment plant upgrade, plus savings in projects, have resulted in $4.1 million less being spent on capital expenditure.
The council is forecasting to receive $5.1 million in development contributions, $2.2 million more than expected. In addition, there has been a jump in revenue from fees and charges, largely driven by the increase in building consents issued to new home builders.
This all reflects the fact that Waipa is growing, and growing rapidly.
A number of savings were also reflected in the lower forecast debt figure, Mr Morris said. They included savings in staff costs and operating expenditure of more than $500,000 plus nearly $800,000 saved in interest expenses.
Media enquiries, contact Jeanette Tyrrell (on behalf of council) 027 507 7599.